Armistice plans new drill program

The drilling, to cost $750,000 and which should be completed by year- end, is part of a multi-year plan by the junior to prove the orebody of the neighboring Kerr Addison mine downfaulted and continues westward on to the Armistice property.

The company’s completed drill holes into the Kerr zone, which Guy Hinse, vice-president exploration, said starts on the property at about 2,400 ft and may continue to a depth of 7,000 ft, have been wide-spaced.

Hole 22-W900-4 returned several encouraging assays, the company says, the best intersection being 9 ft of 0.196 oz gold per ton.

“We’re absolutely sure we have found the Kerr Addison horizon,” Hinse said. Reluctant to estimate the size of the deposit, he said drill- indicated reserves currently stand at about 500,000 tons grading 0.15 oz.

Having located the Kerr zone, the company plans “to keep drilling it on strike and at depth,” Hinse said. Two other drill targets on the property are the Sheldon and Armistice horizons.

The company introduced its new president, Harvey Atkin, a businessman and actor, at the meeting. Elected to the board of directors were Atkin, Hinse, R. Martel, Stephen McIntyre, Koos Schippers and Gregory Smith.

In other news, Atkin reports Armistice has been examining the possibility of acquiring, alone or in partnership, the mill on the old Kerr Addison property for its own use should a production decision be taken.

Until recently, the mill and property belonged to Golden Shield Resources, which has declared bankruptcy. The mill sits about 1,500 yards from the Armistice property.

A Toronto-based firm, GSR Acquisition, has already made a proposal to the bankruptcy trustee to revive Golden Shield. It has forwarded a letter regarding its proposal to the various creditors. “We are negotiating agreements with various groups that could result in the utilization of some of the company’s assets in the short term,” writes Frank Smeenk, secretary-treasurer of GSR.

“One group would undertake the conversion of parts of the milling complex at Virginiatown to process base metal ores. Another group would undertake the future rehabilitation of one of the two remaining mill circuits to process higher grade ores from other nearby sources.

“Two other groups would undertake substantial underground exploration programs on the company’s mineral properties, the results of which could see the remaining mill circuit also rehabilitated to gold ore processing.”

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