ONTARIO – The reopening of the McGarry gold mine at Virginiatown is a step closer. Owner Armistice Resources of Toronto has entered into a loan facility agreement for up to $11 million with Sprott Resource Lending Partnership. Armistice intends to begin gold production at an initial rate of 350 t/d in Q4 2011.
The McGarry mine property, adjacent to the former Kerr Addison gold mine (also owned by Armistice), has been explored off and on since 1945. It is equipped with a three-compartment shaft to a depth of 700 metres, a 3-metre double drum hoist, headframe, hoist-compressor building, electric substation, and a dry-shop building. The hoist has the capacity to service the shaft to a depth of 1,280 metres.
Armistice has spent over $30 million on the project since 1985. The 43-101 report of April 2009 put underground indicated resources at 446,000 tonnes grading 7.9 g/t Au (3.4 g/t cutoff) and an inferred resources at 156,000 tonnes grading 5.8 g/t. The McGarry property also has near-surface gold potential.
Learn more at www.Armistice.ca.