By NICK STEWART
An impending 10,000-foot diamond drill program at Kirkland Lake-based Armistice Resources Corp.’s McGarry Gold Project is expected to set the stage for a potential production decision, according to the company’s president and CEO.
“We hope to be moving forward with some of the underground work by mid-summer,” Todd Morgan says.
“We expect to be well into it and almost complete in this first phase by the end of the year or the beginning of 2008. We’re excited and we’re comfortable that we’ve got a great project ahead of us.”
The 484-hectare McGarry Gold Project located 40 kilometres east of Kirkland Lake and is adjacent to the historical Kerr-Addison Mine that produced 11 million ounces of gold in its 58-year life. Drilling conducted in the last two decades has given Armistice reason to believe the property is an extension of the Kerr mineralization, or a geological package highly similar to that of the nearby mine.
A resource estimate developed in 2002 showed 434,000 tons grading an average of 0.25 ounces, though Morgan points out this estimate is based on drilling over a small portion of the property. The limited scope of drilling on the property only allowed for half of the project’s 3,000 feet of strike length to be considered, and only at a depth between 2,000 and 2,600 feet. As the project’s geology is open at depth, with the deepest intersection recorded at 5,600 feet, Morgan says more drilling is required to update the resource calculation.
To further explore this opportunity, Armistice recently signed a contract with Kirkland Lake’s Heath and Sherwood Drilling Inc., a subsidiary of Vancouver based- Cabo Drilling Corp. While the initial agreement is for 10,000 metres, Morgan says it could expand if the findings are positive. As such, $4 million has been planned for exploration through 2007, though the number may rise if additional drilling is required.
In order to increase the resource in all categories, the 2007-drill program will include in-fill drilling above and below the 2,250-foot level to “fill in the blanks” left by prior efforts. Drilling is also expected to continue at greater depths to scope out the extent of the ore body, and prepare for future bulk sampling.
“This will make sure that what we’re drilling is going to correlate with what’s going to come out of the mill. I think it’s important you do as much homework ahead of time as possible before you push these things forward, and make sure what you think you have is what you actually do have.”
This stage follows months of dewatering completed by Paul Whelan Mining Contractors and the rehabilitation of the underground mine workings.
Though exploration at the property first began in the 1940’s, financial constraints prevented any drilling to begin for another three decades.
Interest rose again in the mid-1980’s, when Armistice spent $30 million on exploration and development. At the time, the company also sunk a shaft to the 2,250-foot level, installed a headframe, hoist and constructed a mining plant capable of sustaining production to 4,000 feet.
Prior established mine workings has helped Armistice’s current efforts by reducing overall costs.
The McGarry Project’s location will also stand it in good stead, with Highway 66 nearby and a variety of custom milling opportunities within an hour’s hauling distance. What’s more, the presence of reliable local workers is expected to help carry the project into the future at a time when the industry is seeing “extreme tightness,” in skilled labour, Morgan says.
