TORONTO, April 22, 2013 /CNW/ - Armistice Resources Corp. (TSX: AZ), operator of the McGarry gold mine in Ontario's Kirkland Lake area, today reported results from expanded production stope development in the McGarry Mine.
Sill drifting under future stoping zones has now reached a cumulative 820 feet (250 m) in seven zones on the 2250 Level and related sublevels as well as the 2050 Level. The average expected stoping width is 5.0 feet (1.5 m) and estimated undiluted grades averaged over all the stoping areas is 0.34 oz/t (11.7 g/t).
The grades reported are based on chip samples taken on the face after each mining round. Typically each round is six-to-eight feet in depth and generally wider than the expected stopes to ensure that stoping areas are optimally defined and to enable the load-haul-dump equipment into the drift to remove the broken rock. As a result, the grade delivered from the production development sill drifts will include some dilution. Allowing for 35% dilution, which is typical for the recovery from narrow stopes, the diluted grade expected to be delivered to a mill from stoping is 0.21 oz/t (7.3 g/t).
The results summarized above are as anticipated in the filed NI 43-101 Technical Report, Preliminary Economic Assessment and Mineral Resource Estimate, McGarry Project by Martin Drennan, P.Eng., Python Mining Consultants Inc. dated 30 September 2011.
The details of the sill drifting are summarized in the table below and on the attached Figures 1 to 5 summarizing the location of the drifting within the mine.
In 2012, production development was concentrated on the west end of the underground infrastructure in the 325N Zone on the 2250 Level. Mining is continuing in this area with a new sublevel established about 50 feet below the drifting previously reported in 2012.
"We are very pleased with these results from the continuing stope development that we're undertaking in our McGarry Mine," said Todd J. Morgan, chief executive officer and president. "In particular, we were pleased to confirm that the gold zones encountered on the 2280 sublevel are being closely repeated on the lower 2330 sublevel. On the upper 2280 sublevel, the excellent mineralization defined in the #2W sill drift is now being extended to the west. Although assay results are pending, the gold zone is open to the west and continuing as expected in all sill drifts.
"We are developing two additional zones much closer to the shaft, the 440N and the 330N Zones, at the east end of the 2250 Level. The 330N Zone contains unique nugget-type distribution of visible gold in every face. Although this nugget-type distribution presents sampling challenges, results in both zones are encouraging with continuity exceeding expectations," Mr. Morgan reported.
"Also, thus far in 2013," added Erik Andersen, P.Eng., Vice-President and Chief Operating Officer, "we have opened stope development on the east end of the mine on the 2050 Level, 200 feet above the main 2250 Level. To improve production efficiency, sill drifting on the 2050 Level is very close to an ore pass that delivers the mined material to within a few feet of the shaft hoisting system on the 2250 Level.
"The gold zones being mined on the 2050 Level are interpreted to be related to the 440N and 330N zones on the 2250 Level 250 feet below and to the test stope mined in 1995 as well. While grades at the location where initial sill drifting on the 2050 Level was started are lower than in the 325N and 440N Zones on the 2250 Level, we expect this to improve as drifting advances. The material from the 1995 test stope (see Figure 5) was milled at the nearby Macassa Mine and returned a head grade of 0.21 oz/t from 2,900 tons extracted," Mr. Andersen said.
| Undilted | Diluted 35% @ 0.02 oz/t |
||||||||||
| Stope Sill | Length ft (m) |
Average Width ft (m) |
Average Grade Uncut oz/t (g/t) |
Average Grade Cut to 1.5 oz/t oz/t (g/t) |
Average Grade Cut to 1.5 oz/t oz/t (g/t) |
||||||
| 2280 Sublevel 325 N Zones |
|||||||||||
| #1 E & W | 320 | (98.0) | 5.0 | (1.5) | 0.35 | (11.9) | 0.32 | (10.8) | 0.24 | (8.2) | Previous (Nov 2012) |
| #1.5 E & W | 85 | (26.0) | 4.4 | (1.3) | 0.18 | (6.0) | 0.18 | (6.0) | 0.14 | (4.6) | Previous (Nov 2012) |
| #2 E & W | 260 | (79.2) | 4.7 | (1.4) | 0.44 | (15.2) | 0.30 | (10.2) | 0.22 | (7.6) | Previous (Nov + Dec 2012) |
| 2330 Sublevel 325 N Zones |
|||||||||||
| #1 E | 80 | (24.0) | 5.6 | (1.7) | 0.47 | (16.2) | 0.44 | (15.0) | 0.32 | (11.1) | New |
| #1.5 E & W | Not Currently Active | New | |||||||||
| #2 E | 25 | (7.6) | 3.9 | (1.2) | 0.24 | (8.1) | 0.24 | (8.1) | 0.18 | (6.1) | New |
| #2 W | 25 | (7.6) | 5.9 | (1.8) | 0.17 | (5.8) | 0.17 | (5.8) | 0.13 | (4.3) | |
| 2250 Level 00 Area Zones |
|||||||||||
| 440 N Zone | 60 | (18.0) | 5.3 | (1.6) | 0.25 | (8.6) | 0.25 | (8.6) | 0.18 | (6.2) | New |
| 330 N Zone | Active with visible gold in each face but low overall chip sample grades | New | |||||||||
| 2050 Level | |||||||||||
| 320 N Zone E | 32 | (9.8) | 6.3 | (1.9) | 0.15 | (5.1) | 0.15 | (5.1) | 0.11 | (3.8) | New |
| 320 N Zone W | 24 | (7.3) | 5.2 | (1.6) | 0.09 | (3.2) | 0.09 | (3.2) | 0.07 | (2.3) | New |
| Total | 820 | (250) | 5.0 | (1.5) | 0.34 | (11.7) | 0.29 | (9.8) | 0.21 | (7.3) | |
Note that ounces per ton and oz/t refers to Troy ounces per short ton and distances on the figures are in feet. Also note that g/t refers to grams per metric tonne and m refers to metres.
Quality Control and Quality Assurance Process
Armistice maintains procedures for Quality Control and Quality Assurance. These procedures include sawing the core in half and retaining half for archive reference. The other half is assayed using standard fire assay techniques with AA finish. For every 20 samples submitted for assay, one sample is quarter sawn and each quarter is submitted to separate labs for independent analysis. For each 20 samples submitted, one blank is also submitted for control. All samples are sent to PolyMet Labs, Cobalt, Ontario, and Swastika Labs, Swastika, Ontario, both being recognized independent assay laboratories.
Qualified Person
Erik Andersen, P.Eng., Vice-President and Chief Operating Officer of Armistice Resources and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved this news release.
About Armistice Resources Corp.
Armistice Resources, a Canadian-based exploration and development company, is the owner of the McGarry gold mine in Ontario's Kirkland Lake area. Including the McGarry Mine property, Armistice has established a sizeable footprint of contiguous gold properties in Virginiatown on the prolific Larder Lake-Cadillac Break that extends 200 km east-west straddling the Ontario and Quebec border and that has produced 95 million ounces of gold. The McGarry Mine consists of 33 contiguous patented mining claims, including three licenses of occupation, totaling 484 hectares. The McGarry Mine is fully permitted and all equipment and systems at the site have been brought up to standards.
In addition, in December 2010, Armistice signed a definitive five-year option agreement for the purchase of up to 100 percent of the mineral rights on the Kerr-Addison property, which is adjacent to the McGarry Mine. The Kerr-Addison Gold Mine was one of Canada's largest gold producers, producing more than 11 million ounces of gold during a 58-year operating life from 1938 to 1996. In December 2012, Armistice completed the purchase of the mineral rights on 18 mining claims totaling 627 acres (the Barber-Larder Property) located on the western boundary of the McGarry Mine.
Armistice Resources is listed on the Toronto Stock Exchange (Symbol: AZ) and currently has 231,528,971 common shares issued and outstanding. To find out more about Armistice Resources, please visit the company's website at www.armistice.ca.
Forward-Looking Statements
This news release contains forward-looking statements, including current expectations on the timing of the commencement of production and the rate of production, if commenced. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to, the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties about Armistice Resources' business are more fully discussed in the company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Armistice Resources assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
Image with caption: "McGarry Mine 3D View of Workings Showing Active Stope Silling Areas Figure 1 (CNW Group/Armistice Resources Corp.)". Image available at: http://photos.newswire.ca/images/download/20130422_C7358_PHOTO_EN_25833.jpg
Image with caption: "McGarry Mine - 2280 Sublevel 325N Zones Stope Sill Drifting Results Figure 2 (CNW Group/Armistice Resources Corp.)". Image available at: http://photos.newswire.ca/images/download/20130422_C7358_PHOTO_EN_25834.jpg
Image with caption: "McGarry Mine - 2330 Sublevel 325N Zones Stope Sill Drifting Results Figure 3 (CNW Group/Armistice Resources Corp.)". Image available at: http://photos.newswire.ca/images/download/20130422_C7358_PHOTO_EN_25835.jpg
Image with caption: "McGarry Mine - 2250 Sublevel 440N Zones Stope Sill Drifting Results Figure 4 (CNW Group/Armistice Resources Corp.)". Image available at: http://photos.newswire.ca/images/download/20130422_C7358_PHOTO_EN_25836.jpg
Image with caption: "McGarry Mine - 2050 Sublevel 320N Zones Stope Sill Drifting Results Figure 5 (CNW Group/Armistice Resources Corp.)". Image available at: http://photos.newswire.ca/images/download/20130422_C7358_PHOTO_EN_25837.jpg
SOURCE: Armistice Resources Corp.
President, CEO, and Chairman
Todd J. Morgan
Armistice Resources Corp.
Email: [email protected]
(705) 567-4567
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
Email: [email protected]
416-594-1600
416-518-8479 (cell)
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