Toronto-based Armistice Resources (TSE) says discussions are under way with a group of private investors to raise funds for additional underground exploration on the company’s McGarry Twp. gold property near Virginiatown, Ont. The company’s board of directors recently approved a new underground exploration program for the 1,135-acre property, said new Armistice President Frank Smeenk.
The property, which is 75% owned by Armistice, adjoins the west boundary of the old Kerr gold mine. The Armistice property is equipped with an operating 3-compartment shaft to the 2,250-ft. level; work areas on eight underground levels have been established.
Exploration plans call for more underground drifting on the 2050 level and about 3,500 ft. of diamond drilling from three different levels. Later in the program, a bulk sample of up to 5,000 tons will be extracted for processing at the nearby Kerr gold mill, owned by Deak Resources (TSE) and its subsidiary company GSR Mining.
The total cost for the program is budgeted at about $500,000, part of which is expected to be supported by an exploration grant under the Ontario Mineral Incentive Program (OMIP).
Smeenk says positive results from the work program could increase reserves in the 185-N zone from 60,000 tons grading 0.29 oz. gold per ton to about 150,000 tons. Drill holes are also planned to intersect the 100-N and 260-N zones where potential for additional reserves is reported to exist.
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