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Armistice Resources to mine in 2011

With plans to bring its Kirkland Lake-area project into production by 2011, Armistice Resources is moving aggressively on its McGarry Gold Project.
Armistice 1
Located in the Kirkland Lake camp, Armistice Resources' McGarry project has a production date of 2011.

With plans to bring its Kirkland Lake-area project into production by 2011, Armistice Resources is moving aggressively on its McGarry Gold Project.

Located 40 kilometres east of Kirkland Lake, the project will employ more than 100 when it comes online.

“What we see there is a great project,” says president and CEO Todd Morgan, who also serves as a Kirkland Lake councillor.

“We’re thrilled with what we have.”

Production through the first year is targeted at 350 tons per day, ramping up to 600 tons per day the second year and beyond. Custom milling opportunities are being examined.

The property has an industry-compliant resource of roughly 500,000 tons at a grade of 0.25 ounces per ton, though the resource is expected to expand as drilling continues, says Morgan.

To help finance the move towards development, Armistice is exploring various financing options. While there are plans to perhaps seek equity financing in the future, Morgan says the company is looking at “the least dilutive” option.

While no numbers are yet available, the overall cost will be considerably lower than expected as much of the required infrastructure is already in place, such as a headframe, production hoist, and a shaft to the 2,290 feet.

In the meantime, staff is in the process of conducting the requisite technical work to determine its exploration program for the coming year. Last fall’s drilling has shown that the geology from the McGarry mine extends upwards from roughly the 2,000- foot level up to surface, showing that past interpretations of the mineralization were perhaps misunderstood, says Morgan.

As part of the company’s approach to growth, Armistice is looking at acquiring the adjoining Kerr- ddison property, which includes the past-producing Kerr Mine. The site produced more than 11 million ounces between 1938 and 1996, and once stood as Canada’s largest gold producer.

Currently, Armistice has a binding letter of intent to acquire the property from a group of private investors, and is in the process of completing its due diligence.

The majority of this work has already been done, says Morgan, with expectations it will be complete by the end of the summer.

This kind of rising interest in the area’s past and future mines is emblematic of the flurry of gold- elated exploration dollars being spent in the Kirkland Lake region.

It’s something that’s definitely helping to lift the town’s economic health and providing some hope for the future, says Morgan.

“What’s happening in Kirkland Lake is fantastic. We have the tiger by the tail.”