- Shipments of ore from the McGarry gold mine to mill for processing have commenced
- Rebuild and maintenance of McGarry mine's hoist system completed; hoisting from mine resumes
- Company productively used time during hoist system rebuild to complete various important planned maintenance and construction projects
TORONTO, April 16, 2012 /CNW/ - Armistice Resources Corp. (TSX: AZ), which began hoisting and stockpiling in December 2011 at its McGarry gold mine in Ontario's Kirkland Lake area, today announced that it has begun shipments of ore from the mine to a mill for processing.
After receiving bids from a number of local haulage companies, Armistice has signed a contract with James Lathem Excavating Limited for trucking ore from the McGarry mine to the McAlpine Mill, near Cobalt, Ontario, for processing. On March 6, 2012, Armistice announced that it had signed a custom milling contract with SMC (Canada) Limited for processing ore at its McAlpine Mill. The contract covers processing of the first 30,000 tons of ore to be delivered from the McGarry gold mine.
"We have previously brought sufficient ore to surface at the McGarry property," said Todd. J. Morgan, president and chief executive officer, "so that with the signing of this trucking contract we were able to commence immediately a steady rate of shipments initially from pre-production activities and then from production stopes for processing at the mill and that will lead to our initiating our first sales of gold.
"I also am pleased to report that we have resumed hoisting operations at the McGarry mine. As we reported on March 20, 2012, we proceeded with rebuilding and maintenance work on the hoist system. We have completed the refurbishing of both hoist motors and the associated motor-generator set, and have now placed the system back into operation. This means a full resumption of underground work in the mine, including bringing ore to the surface.
"We have used the past few weeks very productively, completing a number of essential projects that had been planned. In particular, we made modifications to the headframe required for double skipping; we completed the construction of a temporary headframe on surface at the vent raise for the installation of escapeway ladders to the 1250 Level; we overhauled major surface mobile and stationary equipment; we improved and relocated various surface storage facilities; and we engaged a number of employees in essential training programs," Mr. Morgan added.
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, began hoisting and stockpiling operations in December 2011 from its McGarry gold mine in the Kirkland Lake area of northeastern Ontario. The McGarry Mine is located 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 is adjacent to the Kerr-Addison Gold Mine that has produced more than 11 million ounces of gold. Armistice has signed a definitive five-year option agreement for the purchase of up to 100 percent of the mineral rights on the Kerr-Addison property. 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, including its installed mining plant. Armistice Resources is listed on the Toronto Stock Exchange (Symbol: AZ) and currently has 185,810,971 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.
For further information:
President, CEO and Chairman
Todd J. Morgan
Armistice Resources Corp.
Investor and Media Relations
Richard W. Wertheim
Wertheim + Company Inc.
416-594-1600 ext. 223