Encouraging results from deep-drilling at Armistice bet

Announced were 0.19 oz gold per ton over 20 ft, 0.16 oz over 6 ft and 0.14 oz over 6 ft. The holes were drilled from the 1,850-ft level, penetrating a pyrite rich mudstone which the company says is known as flow-ore in the Larder Lake area.

Armistice says the strike of the zone is estimated to be about 245 degrees with a near-vertical dip and a true width of 10-15 ft. The intersections are within the Sheldon zone, which lies above the sought-after Kerr zone.

The Armistice drilling and shaft- sinking program is aimed at proving the theory the Kerr Addison orebody down-faulted at its western boundary and that the Kerr deposit is present at depth on the Armistice property.

The three holes extend the flow- ore zone uncovered by Armistice last September. Continuous drilling is planned from the 1,850 level this month and during February.

The company says its first opportunity to examine the Kerr zone in detail should occur in February, 1989, when the shaft reaches the 2,050-ft level and an underground drilling station is established.

Shaft sinking is proceeding at about 8 ft per day. Plans call for a deepening of the shaft to 4,000 ft (and possibly to 6,000 ft, depending on exploration results). An existing 2-compartment shaft was rehabilitated to 1,250 ft; sinking of three compartments will continue to 3,800 ft; four compartments will be sunk between 3,800 ft and 4,000 ft.

In December, the company completed a previously announced private placement with 1988 (No 3) Mintax Mineral Ltd. Partnership for $750,000 consisting of about 1.14 million flow-through shares at 65.65 cents per share. Also last month, the company completed the sale of 793,333 common shares at 45 cents per share for a total consideration of $357,000 with warrants to purchase 793,333 shares at 60 cents each until Jan 15, 1990.

In addition, at the end of the same month, Armistice completed the sale of $882,000 worth of flow- through units consisting of 1.47 million shares at 60 cents per share and 1.12 million warrants to purchase 1.12 million shares at 60 cents each until March 15, 1989.

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