|November 30, 2012|
Company Acquires Flagstaff Mine, Oregon Past Gold Producer
|November 30, 2012, Vancouver, BC -- ( CNSX:ARO) Les Kjosness, President & CEO, is pleased to announce it has signed a Letter of Intent to be extended to an Exploration Agreement with Dimari Enterprises LLC of Pasco, Washington for the acquisition of the Flagstaff Gold Mine located eight miles east of Baker City, Baker County, Oregon. The property is located one half mile off a paved highway with ready access to rail and power.|
In a 2006 report prepared for Dimari by Freddie Quimby, an independent mining contractor, he noted there are several veins on the property traced for two miles in the valley. The Flagstaff massive quartz vein at the 360 ft. level consisted of a body 300ft. deep by 300ft. long averaging 1.5 feet wide. A total of 13,500 tons of 0.42 opt au 5,670 ounces was estimated.
Mr. Quimby also stated that the Big Ledge vein on the property is exposed at the 260 foot level of the mine for a distance of 520 feet. One stope is opened on this level for a length of 125 feet. Values of 0.89 opt au ton were reported. There is an estimated, 216,666 tons for a total of 192,832 ounces of gold. In addition, to the 360-ft level of the Big Ledge, it is estimated there are 83,333 tons at 0.89 opt gold for an additional 74,166 ounces of gold.
Mr. Quimby acquired some of his data from reports by: A. Kirkbride, S.A. Matthews and J.L. Fisher, Registered Mining Engineers.
In a 1992 report by Brian G. White, P.Geo, for Hecla Mining Company, he noted
"Underground examination and sampling of the Big Ledge indicated the possibility of an extensive body of this disseminated mineralization, that could average at least 0.20 opt Au across an average width of 15 to 20 feet, and possibly total several million tons and be exploited by underground mining."
The data from the reports previously mentioned was not done by a qualified person and is classified as historical estimates not as current mineral resources and the issuer is not treating the historical estimate as current mineral resources.
The Flagstaff Mine has a long gold production history having been owned by a French company who owned and operated the mine from 1898 until 1914. Labor disputes disrupted production and the mine permanently closed when the fully timbered double compartment elevator shaft and timbers in the tunnels mysteriously caught on fire.
Company Acquires Flagstaff Gold Mine
November 30, 2012
Under the terms of the Letter of Intent with Dimari, Armadillo has agreed to pay US$ 10,000.00 upon signing the LOI and US$15,000 on singing of the Exploration Agreement. ARO is to complete an initial program of sampling, trenching, and drilling including an upgrade to the existing tunnels to gain access and verify the existing orebody. After verification, Armadillo will pay:US$50,000.00 and issue Dimari 500,000 common shares of the Company. A further payment of, US $50,000 per anniversary date or a 25% royalty from production, whichever is the greatest to a maximum total payable of US$5,000,000 will also be required.
On behalf of the Board,
President and Director
For further information:
Les Kjosness: 604-408-6500
Kirsti Mattson: firstname.lastname@example.org Media
The CNSX has neither approved nor disapproved of the accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
You can view the Next News Releases item: Thu Dec 13, 2012, Armadillo Adds James Turner, P.Geo. to Board of Directors
You can view the Previous News Releases item: Mon Oct 1, 2012, Company Announced Delay in Filing Annual Financial Statements
You can return to the main News Releases page, or press the Back button on your browser.