Arizona Metals Corp owns 100% of the Kay Exploration Property in Yavapai County, which is located on a combination of patented and Bureau of Land Management "(BLM) unpatented claims totaling 1,300 acres that are without royalties. The Kay Mine Deposit is located on 71 acres of patented (private) land. The Company also owns 154 acres of private land (hosting water wells and underground water rights) located 900 metres north of the Kay Mine Property.
Permitting on BLM claims is considered to be an "affirmative" process, under which the BLM provides timelines and pathways to mine construction and production, subject to compliance with all regulatory requirements.
None of the Company's claims or exploration targets are located on or near Native American Reservations. None of the parcels in the Company's land package are on National Forest Service Lands.
Arizona Metals' Kay Exploration Project has 11 drill pads permitted under a Notice of Intent (NOI) which allows for up to 5 acres of disturbance on BLM claims. The Company intends to submit an application for an Exploration Plan of Operations (EPO) in 2023. This would allow the construction of additional roads and pads to test for drill targets recently identified through surface exploration and geophysical methods.
The Company envisions that the Kay Project will become an underground mining operation with a relatively small surface footprint. The deposit geometry does not support an open-pit type operation.
The Company has its own wells and groundwater rights on private land located 900 metres north of the Kay Project claims.
The Company has a well monitoring program in place to track water levels while drilling, as well as any effects on wells located upstream and downstream. A detailed property-wide and regional hydrological study is currently underway to collect data for use in future economic studies.
Additionally, the project's drilling has identified potential new sources of water which the project team intends to explore further.
Viewshed from Town
The Company's drilling operations at the Kay Project are located west of a steep ridge that blocks the view of the drilling operations from both highway I-17 and the community of Black Canyon City.
Biological & Archeological Studies
As part of the permitting process for drill pads under the NOI, the Company engaged third-party consultants to undertake both archaeological and biological studies, which confirmed the Kay claims do not lie within lands of historic cultural importance and are not the in the habitat of any endangered species.
The Central Arizona Project and the Kay Project
The Central Arizona Project canal provides Colorado River water to the State's three most populated counties -- Maricopa, Pima, and Pinal. Recently, the State of Arizona made headlines by restricting some new growth in Maricopa County due to concerns about whether its long-term water needs could be met. This development does not, however, impact the Kay Exploration Project.
Located in Yavapai County, the Kay Exploration Project depends on water sources other than the Central Arizona Project.
The Kay Exploration Project is not located within an Active Management Area (AMA) or an Irrigation Non-Expansion Area (INA). This means that regulations on groundwater pumping and common encumbrances which could substantively impact the permitting process do not apply in this area. As with all areas of the State outside of AMAs and INAs, the doctrine of "first in time, first in rights" prevails. This means that the first entity which puts the water to "a beneficial use" acquires senior water rights.
The Kay Exploration Project has its own wells and water rights located approximately 900 metres north of the project's mining claims. The company has a robust monitoring program in place to track water levels, as well as impacts to the water table in the surrounding areas. A detailed hydrological study that is both site-and-regionally focused is currently underway to collect data for future development of Kay's water use program. Additionally, the project's drilling has identified potential new sources of water which the project team intends to explore further.