Arizona Metals Corp Announces trunk Hole KM-20-10 Intersects 4.9 m of 6.2% CuEq, as well as 0.6 m of 9.6g/t AuEq and 1.6m of 3.1% CuEQ, at its Kay Mine VMS Project in Arizona
TORONTO, June 29, 2020 – Arizona Metals Corp. (TSX.V:AMC) (the “Company” or “Arizona Metals”) is pleased to announce that drilling at the South Zone of its Kay Mine Project, located near Black Canyon City, Arizona, has intersected massive sulphide mineralization in an area previously untested by historic exploration. Hole KM-20-10 intersected an interval of 4.9 m at a grade of 6.2% CuEq, including 3.0 m at a grade of 7.8% CuEq, from a vertical depth of 480 m.
Further downhole, from a vertical depth of 491 m, KM-20-10 also intersected an interval of 0.6 m at a grade of 9.6 g/t AuEq, and 1.6 m of 3.1% CuEq from a depth of 494m.
Marc Pais, CEO, commented “The resumption of our Phase 1 drill program at the Kay Mine project has continued to confirm the historic results reported by previous operators. We have also encountered new mineralization outside of the historic workings. To date, we have hit massive sulphide mineralization in 9 out of the first 10 holes reported. Holes 11, 12, and branch hole 10A are currently at the lab for assay. Branch hole 10B is currently underway (about 30 m north of the hole released today), as is hole 13. We expect a steady flow of drill results from the Kay Mine Project over the next few weeks and months. We are also anticipating drilling to start on July 6th, 2020 at our Sugarloaf Peak Project, which has a historic estimate of 1.5 million ounces of gold1”.
Figure 1. Drill hole KM-20-10 in the South Zone which intersected 4.9 m of 6.2% CuEq, including 3.0 m of 7.8% CuEq., as well as 0.6 m of 9.6g/t Au Eq and 1.6m of 3.1% CuEq. Holes KM-20-10A and KM-20-11 have been completed and submitted for assaying. Branch hole KM-20-10B and trunk KM-20-12 are currently in progress. See Table 3 for constituent elements and grades of CuEq% and AuEq g/t. “Historic Assay Grades – Cu%” are underground channel samples at a 4-foot spacing, as well as underground drilling.
Drill hole KM-20-10 is located approximately 40 m below the 1500-foot level of underground exploration drifts, which was described as mineralized in historic exploration work by Exxon Minerals. This hole is also 80 m above hole KM-20-09 drilled by Arizona Metals in March 2020, which intersected 6.1 m of 7.8 g/t AuEq (see Table 2 below).
Hole KM-20-10 is being used as a trunk hole in order to wedge a number of branch holes aimed at the 1500-foot level described by Exxon, located approximately 50 m above the interval announced today. Branch hole KM-20-10A, in this location, has been completed and samples submitted to ALS Laboratories in Tucson, Arizona. Branch hole KM-20-10B is currently in progress.
Hole KM-20-11 was drilled to target the 1500-foot level of the North Zone at a target depth of 550 m (Figure 1). Samples of this hole have been submitted to ALS Laboratories for assay. Hole KM-20-12 was drilled to target the 1200-foot level of the North Zone at a target depth of 300 m (Figure 1). Samples of this hole have been submitted to ALS Laboratories for assay.
Table 1. Locations of Phase 1 Program drill holes completed and in progress at Kay Mine, Arizona
Covid-19 Monitoring and Mitigation Procedures
The Company’s drill contractor, Boart Longyear, has instituted Covid-19 monitoring procedures for all drill crew members, including daily temperature and symptom checks. Arizona Metals Corp will be provided with daily health tracking updates for the drill crews and has also instituted its own social distancing policies and provided a guidance manual for employees at site.
Summary of North Zone Drill Results (for detail, see April 15th, 2020 press release):
Holes KM-20-01 through KM-20-06 all intersected massive sulphide mineralization. Hole
KM-20-07 did not intersect significant mineralization and is believed to have passed between the North and South Zones. Arizona Metals’ drilling tested a vertical extent of approximately 50 m in the North Zone, to a vertical depth between 120-170 m. Historic underground exploration by Exxon Minerals reported mineralization at depths in the North Zone of up to 300 m below recent drilling by Arizona Metals.
Highlights of the first six holes in the North Zone include:
KM-20-03: 2.7 m grading 5.41% CuEq (incl. 0.9 m of 10.32% CuEq), from a depth of 120 m
KM-20-03A: 4.6 m grading 6.85% CuEq (incl. 0.8 m of 18.19% CuEq) from a depth of 122 m
KM-20-05: 2.4 m grading 9.19% CuEq (incl. 1.2 m of 13.89% CuEq) from a depth of 150 m
KM-20-06: 13.5 m grading 2.92% CuEq (incl. 4.9 m of 4.54% CuEq) from a depth of 158 m
Table 2. Results of Initial Drill Program at Kay Mine North Zone, Yavapai County, Arizona
(1) True widths of the reported mineral intervals have not been determined; additional drilling is required.
(2) Assumptions used in USD for the copper equivalent calculation were metal prices of $2.28/lb Copper, $1650/oz Gold, $15/oz Silver, $0.86/lb Zinc, $0.77/lb Pb and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Gold (g/t) x 1.06) + (Silver (g/t) x 0.0096) + (Zinc (%) x 0.3772) +(Lead (%) x 0.3377).
(3) The following equation was used to calculate gold equivalence: AuEq = Gold (g/t) + (Copper (%) x 94.72) + (Silver (g/t) x 0.009) + (Zinc (%) x 35.73) +(Lead (%) x 31.99).
Summary of South Zone Drill Results (for detail, see April 28th, 2020 press release):
Prior to the temporary suspension of the Phase 1 drill program due to the Covid-19 pandemic, a single hole was drilled into the South Zone and intersected gold-zinc massive sulphide mineralization at a vertical depth of 575m, with the following highlighted interval:
KM-20-09: 6.1 m grading 7.8g/t AuEq, including 4.4 m grading 9.3g/t AuEq, and also including 1.1 m grading 16.0 g/t AuEq (Table 1).
This intersection is approximately 160 m vertically above and 100 m to the south of hole KM-8, drilled by Exxon Minerals in 1977, which returned a true width intersection of 10.3 m at a grade of 3.9% Cu and 1.7 g/t Au (6.5% CuEq). Exxon Minerals also reported significant historic intersections located approximately 150 m vertically above hole KM-20-09 in the South Zone. The primary zinc mineralization observed in hole KM-20-09 is in sphalerite, with minor amounts of copper in chalcopyrite.
Table 3. Results of Initial Drill Program at Kay Mine South Zone, Yavapai County, Arizona
(1) True widths of the reported mineral intervals have not been determined; additional drilling is required
(2) Assumptions used in USD for the gold equivalent calculation were metal prices of $2.28/lb Copper, $1650/oz Gold, $15/oz Silver, $0.86/lb Zinc, $0.77/lb Pb and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate gold equivalence: AuEq = Gold (g/t) + (Copper (%) x 94.72) + (Silver (g/t) x 0.009) + (Zinc (%) x 35.73) +(Lead (%) x 31.99).
(3) The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Gold (g/t) x 1.06) + (Silver (g/t) x 0.0096) + (Zinc (%) x 0.3772) +(Lead (%) x 0.3377)
Historic data by Exxon Minerals and previous operators showed gold and zinc increasing at depth and to the south, with copper decreasing. Exxon Minerals also reported that, “isoclinal folding of the massive sulphide horizon at Kay Mine could have resulted in the formation of a number of
en-echelon cigar-shaped massive sulphide boudins with the longest axes parallel to the plunge of the fold axes. The North and South Mineralized Zone could represent two of these lenses, but several more may occur to the south along strike of the Kay Mine horizon” (Westra, 1977).
Sugarloaf Peak Project Update
On July 6th, 2020, Arizona Metals will commence a 1,300m drill program at its Sugarloaf Peak Project in La Paz County, Arizona. Drill core from this program will be sent to Kappes Cassiday and Associates of Reno, Nevada, to undergo bottle-roll and column testing of gold recoveries by leaching of oxide material.
Two cored drill holes will also be extended to a depth of 500m to test a large geophysical target that the Company believes has the potential to host a higher grade “feeder” zone, that could be the source of the disseminated oxide mineralization identified by previous operators.
About Arizona Metals Corp
Arizona Metals Corp owns 100% of the Kay Mine Property in Yavapai County, which is located on a combination of patented and BLM claims totaling 1,300 acres that are not subject to any royalties. An historic estimate by Exxon Minerals in 1982 reported a “proven and probable reserve of 6.4 million short tons at a grade of 2.2% copper, 2.8 g/t gold, 3.03% zinc, and 55 g/t silver.” The historic estimate at the Kay Mine was reported by Exxon Minerals in 1982. The historic estimate has not been verified as a current mineral resource. None of the key assumptions, parameters, and methods used to prepare the historic estimate were reported, and no resource categories were used. Significant data compilation, re-drilling and data verification may be required by a Qualified Person before the historic estimate can be verified and upgraded to be a current mineral resource. A Qualified Person has not done sufficient work to classify it as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral resource.
The Kay Mine is a steeply dipping VMS deposit that has been defined from a depth of 60 m to at least 900 m. It is open for expansion on strike and at depth.
The Company also owns 100% of the Sugarloaf Peak Property, in La Paz County, which is located on 4,400 acres of BLM claims. Sugarloaf is a heap-leach, open-pit target and has a historic estimate of “100 million tons containing 1.5 million ounces gold” at a grade of 0.5 g/t (Dausinger, 1983, Westworld Resources).
1The historic estimate at the Sugarloaf Peak Property was reported by Westworld Resources in 1983. The historic estimate has not been verified as a current mineral resource. None of the key assumptions, parameters, and methods used to prepare the historic estimate were reported, and no resource categories were used. Significant data compilation, re-drilling and data verification may be required by a Qualified Person before the historic estimate can be verified and upgraded to a current mineral resource. A Qualified Person has not done sufficient work to classify it as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral resource.
The Qualified Person who reviewed and approved the technical disclosure in this release is David Smith, CPG.
Quality Assurance/Quality Control
All of Arizona Metals’ drill sample assay results have been independently monitored through a quality assurance/quality control (“QA/QC”) protocol which includes the insertion of blind standard reference materials and blanks at regular intervals. Logging and sampling were completed at Arizona Metals’ core handling facilities located in Anthem and Black Canyon City, Arizona. Drill core was diamond sawn on site and half drill-core samples were securely transported to ALS Laboratories’ (“ALS”) sample preparation facility in Tucson, Arizona. Sample pulps were sent to ALS’s labs in Vancouver, Canada, for analysis.
Gold content was determined by fire assay of a 30-gram charge with ICP finish (ALS method
Au-AA23). Silver and 32 other elements were analyzed by ICP methods with four-acid digestion (ALS method ME-ICP61a). Over-limit samples for Ag, Cu, and Zn were determined by ore-grade analyses Ag-OG62, Cu-OG62, and Zn-OG62, respectively.
ALS Laboratories is independent of Arizona Metals Corp. and its Vancouver facility is ISO 17025 accredited. ALS also performed its own internal QA/QC procedures to assure the accuracy and integrity of results. Parameters for ALS’ internal and Arizona Metals’ external blind quality control samples were acceptable for the samples analyzed. Arizona Metals is not aware of any drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to herein.
This press release contains statements that constitute “forward-looking information” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation, All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements contained in this press release include, without limitation, statements regarding the resumption of drilling and the effects of the COVID-19 pandemic on the business and operations of the Company. In making the forward- looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: availability of financing; delay or failure to receive required permits or regulatory approvals; and general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward- looking statements or otherwise.
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President and CEO Arizona Metals Corp.