McGarry Project

The McGarry Gold Project consists of 34 contiguous patented mining claims and licences of occupation covering a total area of approximately 484 hectares in the southwestern section of McGarry Township, Ontario. The Project is also host to a mining plant consisting of a three compartment vertical shaft to a depth of 2,290 feet below surface, a 10 foot double drum hoist capable of operating to depths of 4,200 feet, a 105 foot steel headframe, a hoist/compressor building, a dry/shop building and an electric power substation.

Situated within the highly prolific Larder Lake Mining Division, the McGarry Project adjoins the past-producing Kerr Addison Mine property to the west. Production from the Kerr Addison Mine totalled approximately 12 million ounces of gold from 41 million tons of ore over its 58 year operating life. Armistice has identified a mineralized system at a depth of 2,200 feet on the McGarry Project, which is geologically identical to that of the adjacent Kerr Addison property. The Company believes that the mineralized system on the Project represents either a duplicate of, or a downfaulted extension of the Kerr Addison system. As a result, Armistice believes that the McGarry Project has the potential of hosting an extensive gold bearing system similar to that occurring at the Kerr Addison Mine, but extending to greater depth.

From 1985 to 1989, Armistice has spent in excess of $30 million on exploration and development of the McGarry Project. This has included the deepening of the shaft, enlargement and refurbishment of the shaft to bring it up to production capacity, installation of a mining plant to sustain production to 4,000 feet, the completion of approximately 10,000 feet of underground development and over 250,000 feet of exploration drilling. Based on the results of the exploratory underground diamond drilling programs, a total drill indicated resource of 433,981 tons grading 0.25 ounces of gold per ton, or 108,495 ounces of contained gold, has been estimated to a depth of 2,600 feet on the Project.

The McGarry Project is free and clear of all encumbrances and in good standing. Mineral and surface rights are included in the Project title, which is registered to Armistice. Title is maintained through the annual property tax payments to the township of McGarry and the Ministry of Northern Development and Mines.  There are no assessment work requirements for continuing tenure.

The McGarry Project is located less than a kilometre west of the town of Virginiatown and approximately 40 kilometres east of the town of Kirkland Lake in northern Ontario. The Armistice mining plant and shaft, located at the eastern end of Barber Lake is easily accessible by means of a short gravel road from paved Highway 66. Access to the rest of the Project area is via bush roads and trails. Electric power is available on site at the Armistice shaft through a substation installed at this location. The area offers abundant infrastructure and ancillary services, including an experienced labour force and custom milling facilities, suitable to support underground mining operations.