🕐22.06.11 - 16:00 Uhr
ARMISTICE RESOURCES DRILLS SIGNIFICANT GOLD ZONE ON KERR-ADDISON PROPERTY WITH H
IGH-GRADE GOLD INTERSECTIONS
PRESS RELEASE
ARMISTICE RESOURCES For Immediate Release
Armistice Resources Drills Significant Gold Zone on Kerr-Addison
Property with High-Grade Gold Intersections
Initial assay results received confirm interpretation of an extensive
gold-bearing system away from the previous workings on the Kerr-Addison
property
Assay result highlights include:
DDH KA-11-04 0.28 oz/t gold over 11.1 ft
including 0.55 oz/t gold over 4.0 ft
DDH KA-11-05 0.12 oz/t gold over 22.7 ft
including 0.23 oz/t gold over 6.0 ft
0.46 oz/t gold over 5.0 ft
Exploration program also underway on McGarry Mine property with addition
of a second surface drilling rig
Company making steady progress toward meeting its target of gold
production from McGarry Mine starting in 2011 fourth quarter
Toronto, ON June 22, 2011 Armistice Resources Corp.
(TSX: AZ), which expects to begin gold production in the 2011 fourth quarter from its
McGarry Mine in the Kirkland Lake area of northeastern Ontario, today announced that the first gold assay results from its ongoing diamond drilling
exploration program on its Kerr-Addison property show extensive gold mineralization in multiple locations in most holes.
These initial assay results confirm the interpretation of the presence of an extensive gold-bearing system away from the previous workings on the
Kerr-Addison property, and extending from surface to at least 1,400 feet.
We will need to do much more work before we can reliably determine the
full scope of this gold system, reported Todd J.
Morgan, President and Chief Executive Officer.
These results are from the first seven holes drilled to test the Kerr Mill Zone, which lies about 700 feet southeast of the mining area of the former
Kerr-Addison gold mine (see attached Figure), said Erik Andersen, P.Eng., Vice-President and Chief Operating Officer.
The Mill Zone was not mined by the previous operators and it has not been systematically drill tested over its interpreted strike length.
The holes
being reported today represent 8,677 feet of drilling.
We are still waiting for some assets results from fill-in sampling and only partial results are
available for KA-11-07.
The analysis of the first holes that we had drilled by the end of April took somewhat longer than we had anticipated.
We experienced delays in receiving assay results from the external laboratories as they are very busy due to the current high level of mining activity,
Mr.
Andersen said.
The Kerr-Addison Gold Mine property, which historically produced more than 11 million ounces of gold, lies adjacent to Armistices McGarry Mine
project.
On December 23, 2010, Armistice announced that it had signed a definitive five-year option agreement for the purchase of up to 100 percent
of the mineral rights on the Kerr-Addison property.
With respect to our McGarry Mine, since our previous update report that we issued May 17, 2011, Mr.
Morgan said, we have continued to make
steady progress on our preparations and remain on schedule to begin gold production in the 2011 fourth quarter.
*Drilling Program*
The holes reported on are from only two drill sections about 100 feet
apart at their collars and oriented at about 45 to each other.
Holes
KA-11-1 to
3 were drilled to the southeast of the main part of the Kerr Mill Zone.
Holes KA-11-4 to 7 were better oriented to test the zone.
True width
estimates and hole-to-hole correlations will not be interpreted until
more data becomes available from the ongoing drilling program.
As previously announced, Armistice is undertaking a $2.5 million surface
diamond drilling program on its Kerr-Addison and McGarry properties.
By
the end of May, the company had completed drilling 10 holes for a total
of 12,685 feet; the drill testing the Kerr Mill Zone is currently on
hole 12.
The company expects that testing of the Kerr Mill Zone will
continue for some time before moving to another target area on the
Kerr-Addison property.
The objective is to drill test a number of priority areas sufficiently
to set longer-term priorities.
It should also be noted that from the
time a hole is collared until assay results are received normally takes
at least four to six weeks.
Highlights of the assay results include:
DDH KA-11-04 0.28 oz/t gold over 11.1 ft
including 0.55 oz/t gold over 4.0 ft
DDH KA-11-05 0.12 oz/t gold over 22.7 ft
including 0.23 oz/t gold over 6.0 ft
0.46 oz/t gold over 5.0 ft
The company now has received and mobilized a second drill to continue the surface drilling program on the McGarry site that Armistice began in 2009.
Drilling on the first hole on the McGarry site is underway.
The McGarry surface program is testing the upward continuation of the
gold zones defined below 1,250 feet, which are part of the current
mining plan.
The area between 1,250 below surface and surface has not
been well explored in the past and the 2009 campaign confirmed the
potential right to surface.
*Tabulation of Significant Kerr-Addison Drill Result Assays*
Below is tabulation of the significant gold intersections received to date.
DDH
Hole Dip
From
To
Interval
Assay
At Collar
(feet)
(feet)
(feet)
(ounces gold per ton)
KA-11-01
-60
1,000.0
1,012.0
12.0
0.064
KA-11-02
-42
302.6
308.7
6.1
0.153
550.0
552.4
2.4
0.171
559.4
560.8
1.4
0.165
743.6
745.6
2.0
0.078
1,200.8
1,205.1
4.3
0.073
1,563.4
1,565.0
1.6
0.183
KA-11-03
-68
No significant assays
KA-11-04
-40
478.6
489.7
11.1
0.281
incl
478.6
482.6
4.0
0.548
697.0
702.1
5.1
0.076
812.5
816.6
4.1
0.106
838.0
839.9
1.9
0.189
KA-11-05
-46
25.2
47.9
22.7
0.123
incl
41.9
47.9
6.0
0.225
68.7
71.0
2.3
0.094
254.0
259.0
5.0
0.457
305.7
333.8
28.1
0.068
incl
324.3
326.8
2.5
0.126
359.3
369.5
10.2
0.180
486.9
495.0
8.1
0.063
771.0
779.9
8.9
0.056
KA-11-06
-57
31.1
35.0
3.9
0.120
449.5
452.4
2.9
0.088
657.1
668.0
10.9
0.115
671.7
672.4
0.7
0.135
757.8
817.3
59.5
0.043
incl
767.8
773.9
6.1
0.134
and
783.0
793.0
10.0
0.089
and
816.3
817.3
1.0
0.247
1054.3
1055.6
1.3
0.107
1068.0
1069.6
1.6
0.102
KA-11-07
-68
39.5
41.4
1.9
0.180
All the assay intervals reported are drill core intervals.
True widths
have not been estimated since the final interpreted geometry of the zones
is yet to be determined.
*Progress Toward Production*
Following are some of the highlights of the pre-production progress at the McGarry Mine made by Armistice during May.
Underground development moved ahead in a number of areas, including the 325 W Drift, which is the priority heading in the mine as it
will provide the drilling base to outline stopes scheduled for early production.
Armistice completed both powder and cap magazines, outfitted them, and put them into service on 2250 Level.
The ordered underground diamond drill rig is expected to be delivered near the end of June.
The previously ordered refurbished Alimak Raise Climber also is expected to be delivered before the end of June.
Getting the Alimak
Raise Climber in place is a top priority in the mine since it is required to provide a second escapeway to the surface that must be
established prior to beginning mining production.
Hiring continued and the company expects to move to two operating shifts per day in early July.*
*
*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.
All samples
assaying over 0.10 oz/t are re-assayed and average is used.
For each 20
samples submitted, one blank is also submitted for control.
All samples
are sent to a recognized independent assay laboratory.
*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, expects to begin gold production in the 2011 fourth quarter
from its McGarry 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
104,924,771 common shares issued and outstanding.
To find out more about
Armistice Resources, please visit the companys 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; the degree to which a
pre-feasibility study gives sufficient grounds for classifying the
indicated mineral resources as probable reserves; 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 companys 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:
Investor and Media Relations
Richard W.
Wertheim
Wertheim + Company Inc.
Email:
416-594-1600 ext.
223
416-518-8479 (cell)