TORONTO, April 28, 2020 – Arizona Metals Corp. (TSX.V:AMC) (the “Company” or “Arizona Metals”) is pleased to announce assay results of the first drill hole completed at the South Zone of its Kay Mine Project, located near Black Canyon City, Arizona. The Company will be hosting Webinars to discuss the drill results and future exploration plans on Tuesday, May 5th, 2020 at 11am (Eastern time) and Tuesday, May 12th, 2020 at 2pm (Eastern time). Registration details below.
Prior to the temporary suspension of the Phase 1 drill program due to the Covid-19 pandemic, seven holes were drilled into the shallowest part of the North Zone, of which six intersected copper-gold massive sulphide mineralization (see April 15, 2020 press release, Table 2 below).
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 interval reported:
KM-20-09: 6.1m grading 7.8g/t AuEq, including 4.4m grading 9.3g/t AuEq, and also including 1.1m grading 16.0g/t AuEq (Table 1).
This intersection is approximately 160m vertically above and 100m to the south of hole KM-8, drilled by Exxon Minerals in 1977, which returned a true width intersection of 10.3m at a grade of 3.9% Cu and 1.7g/t Au (6.5% CuEq). Exxon Minerals also reported significant historic intersections located approximately 150m 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 (Figure 2).
Table 1. 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).
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).
Figure 1. Section looking northeast at the Kay Mine Project, Yavapai County, Arizona. See Tables 1 and 2 for constituent elements and grades of CuEq% and AuEq g/t. Exxon hole K8 is comprised of 3.9% Cu and 1.7g/t Au.
Marc Pais, CEO, commented, “Hole KM-20-09 intersected massive sulphide mineralization farther south than any of the historic surface drill holes reported by Exxon Minerals. In this hole we have observed a change from the copper-gold massive sulphide mineralization encountered in the North Zone drilling, to gold-zinc massive sulphide mineralization. We are incorporating this data into our 3D wireframe model, with the aim of adding drill targets to the Phase 1 program that will test the extent of this gold-zinc zone. To date we have drilled only the shallowest part of the North Zone and one portion of the South Zone. We look forward to continued testing of the extents of mineralization on strike and at depth, as soon as it is safe to resume drilling.”
Figure 2. Hole KM-20-09, from 2079’ to 2088’ down-hole. The interval displayed above is part of a longer interval of 4.4m grading 5.5g/t gold and 9.1% zinc. This image is of a selected interval and is not representative of mineralization hosted on the property.
Summary of North Zone Drill Results (for detail, see April 15, 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 50m in the North Zone, to a vertical depth between 120-170m. Historic underground exploration by Exxon Minerals reported mineralization at depths in the North Zone of up to 300m below recent drilling by Arizona Metals.
Highlights of the first six holes in the North Zone include:
KM-20-03: 2.7m grading 5.41% CuEq (incl. 0.9m of 10.32% CuEq), from a depth of 120m
KM-20-03A: 4.6m grading 6.85% CuEq (incl. 0.8m of 18.19% CuEq) from a depth of 122m
KM-20-05: 2.4m grading 9.19% CuEq (incl. 1.2m of 13.89% CuEq) from a depth of 150m
KM-20-06: 13.5m grading 2.92% CuEq (incl. 4.9m of 4.54% CuEq) from a depth of 158m
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).
Figure 3. Hole KM-20-03 at depth of 256m downhole, grading 7.4% Cu, 1.8g/t Au, 56g/t Ag, and 1.1% Zn. This image is of a selected interval and is not representative of mineralization hosted on the property.
Sugarloaf Peak Project Update
Arizona Metals 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 0.5g/t (Dausinger, 1983, Westworld Resources). 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 compliant with current NI 43-101 standards. 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 Company has submitted an application for 10,000m drill program at Sugarloaf, comprised of core and RC holes, intended to upgrade the historic resource to a current mineral resource, and also test the strike extensions. Final permit receipt is expected in Q2’2020. The Company also intends to undertake a metallurgical testing program, comprised of bottle-roll and column leach recovery tests.
On March 19th 2020, the Company announced the temporary suspension of the Kay Mine drill program in order to protect the safety of employees, contractors and the local community in response to the COVID-19 pandemic. No cases of infection have been reported in any of the Company’s employees or contractors. Arizona Metals’ employees and contractors will be ready to resume operations as soon as local conditions are deemed safe.
The Company has a strong cash position of approximately $3M, and will now focus efforts on modelling drill data received to date in order to refine planned targets for the resumption of drilling.
Webinars to Review Kay Mine Phase 1 Drill Results To Date
Arizona Metals Corp will be hosting Webinars on Tuesday, May 5th, 2020 at 11am (Eastern time) and Tuesday, May 12th, 2020 at 2pm (Eastern time). The Company’s management team will be reviewing the results of the Phase 1 drill program received to date, as well as future exploration plans.
Register below for the Webinar on Tuesday, May 5th, 2020 at 11am (Eastern time):
https://us02web.zoom.us/webinar/register/WN_PmnAfoRBRGC5TcLfEWHuQw
Register below for the Webinar on Tuesday, May 12th, 2020 at 2pm (Eastern time):
https://us02web.zoom.us/webinar/register/WN_hOcqbObVTLy00Z4BT7HbRQ
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, 2.8g/t gold, 3.03% zinc, and 55g/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 150m to at least 900m. 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 0.5g/t (Dausinger, 1983, Westworld Resources).
The 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’ 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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For further information, please contact:
Marc Pais
President and CEO Arizona Metals Corp.
(416) 565-7689
[email protected]
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Arizona Metals Corp.
66 Wellington St. W Suite 4100
Toronto, ON, M5K 1B7
[email protected]