Queries Armistice committed at Larder Lake

As a shareholder of Armistice Resources, I am writing to ask for some information on this company. I am particularly interested in Armistice’s Larder Lake property and I would also like to know if Armistice is regarded as a company with integrity. R.N., Tacoma, Wash. D.C.

Incorporated in 1984 and listed on the Alberta Stock Exchange in November 1986, Armistice Resources is currently spending $12 million to look for gold deposits from 2,000 ft to 6,000 ft below its Sheldon-Larder property, near Kirkland Lake, Ont.

The company was recently listed for trading on the Montreal Exchange where it was trading recently at $1.18 in a 52-week range of $1.34 and 95 cents .

It remained inactive until February, 1986, when it acquired the mining properties of Calgary-based Aurelian Developers. Armistice President R. Russell Martel is also president of Aurelian.

As reported (N.M., Feb 15/88), a 2-3-year shaft-sinking and drilling program is under way on the 34-claim Sheldon-Larder property which adjoins the western boundary of the old Kerr Addison mine at Virginiatown.

The property is held under option from Sheldon-Larder Mines which retains a 24% interest.

The current program is based on an independent report which says the Kerr ore structure extension is present on the Armistice claims. Since it went into production in 1938, the Kerr Addison mine (now operated by Golden Shield Resources) has produced more than 40 million oz gold.

After a shaft dewatering program is finished in April, Armistice will extend the old 1,250 ft shaft by 4,100 ft. However, the shaft may eventually be extended to 6,000 ft.

In charge of the Larder project is manager Meredith Armstrong who has strong connections to both Kirkland Lake and the Kerr Addison mine. His father worked at Kerr Addison for 43 years. Armstrong also worked in the well known mine for six years and his son has followed suit by working at the Kerr mill.

Armistice recently optioned two northern Ontario properties to Canreos Minerals of Toronto for $200,000. The agreement calls for Armistice to finance a $300,000 exploration program over the next 18 months.