Armistice plans a bulk sample

A 10,000-ton bulk sample is planned by Armistice Resources (ME) from the Mill zone of its Virginiatown gold property in northeastern Ontario.

An open pit method will be used to extract the sample from the southern half of the company’s property. President Harvey Atkin said the gold mineralization begins at surface and extends to an as yet undetermined depth.

A 700-ft. road is being constructed to allow access to the zone situated a half-mile southwest of Virginiatown. Upon completion of the road, a reverse circulation drill will be used to define the mining targets.

The nearby Kerr mill, which Deak Resources (TSE) is negotiating to purchase (through an intermediary, GSR Acquisition), will be used to process the bulk sample.

Intending to expand its property holdings in the area, Armistice has signed a letter of intent to acquire an interest in nine claims adjacent to the western boundary of the Armistice property. Being considered by the company is an extension of its 2,250-ft. level drift, a further 1,000 ft. west, to permit underground drilling of these claims.

The Armistice property lies adjacent to the old Kerr gold mine. A deep-drilling program by Armistice is testing the theory the Kerr zone down-faulted at the Kerr property’s western boundary and continued on to the Armistice claims.

An option agreement between Armistice and Deak (through GSR), whereby Deak may earn a 49% interest in the Armistice project, will see further deep testing of the Kerr zone using the existing workings of the old Kerr mine. Planned is an extension of the 3850 level, from the Kerr side into the Armistice property, to permit underground drilling.

Armistice reports completion at the end of 1989 of the sale of $532,000 worth of flow-through shares to Q-Vest and Cathcart, the proceeds to be used in part to finance the planned bulk-sampling work.