Armistice Resources Signs Custom Milling Agreement with QMX Gold
14 Jun, 2013, 08:00 ET
- Armistice will begin shipping ore from its McGarry gold mine to QMX Gold's facilities in Val-d'Or Township, Quebec for milling and refining
- Initial shipment of 10,000 tonnes of stockpiled ore to be followed by subsequent batches at a minimum rate of 5,000 tonnes per month
- Agreement is for at least one year and a minimum of 30,000 tonnes
TORONTO, June 14, 2013 /CNW/ - Armistice Resources Corp. (TSX: AZ), operator of the McGarry gold mine in Ontario's Kirkland Lake area, today announced that it has signed a custom milling agreement with QMX Gold Corporation (TSX: QMX) to begin processing ore from its McGarry Mine at QMX's facilities in Val-d'Or Township, Quebec.
The processing agreement is for a term of at least one year and a minimum of 30,000 tonnes of ore to be delivered by Armistice. The agreement commences upon Quebec regulatory approval with an initial shipment by Armistice of 10,000 tonnes of ore, including some development ore, which is currently stockpiled at McGarry. Subsequent batches are to be delivered at a rate of 5,000 tonnes per month.
The milling agreement calls for QMX to provide for all the necessary handling, sampling, crushing, grinding, processing, refining, and tailings disposal.
"The custom milling agreement with QMX complements our plan to construct our own gold processing plant for the McGarry mine in the future by establishing a mutually beneficial arrangement to address our immediate and medium-term processing requirement," said Todd J. Morgan, chief executive officer and president of Armistice. "A distinct advantage of this agreement is that we will be dealing with a single, experienced partner, QMX, to meet our ore processing and gold sales requirements. We expect this to be more efficient and more cost-effective than the approach that we took with our initial shipment in 2012.
"Once the initial shipments of ore have completed all the stages of processing and sales, Armistice expects to begin realizing significant cash flow," Mr. Morgan said.
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 have produced 95 million ounces of gold in past operations. 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.
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.
SOURCE: Armistice Resources Corp.
For further information:
President, CEO, and Chairman
Todd J. Morgan
Armistice Resources Corp.
Email: [email protected]
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
Email: [email protected]
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