Arizona Metals Corp Announces Drilling Underway at Its Kay Mine Project in Arizona, Outlines Balance of Phase 1 Drill Program
Arizona Metals Corp Announces Drilling Underway at Its
Kay Mine Project in Arizona, Outlines Balance of Phase 1
Drill Program
Toronto, Ontario--(Newsfile Corp. - May 26, 2020) - Arizona Metals Corp. (TSXV: AMC) (the "Company" or "Arizona Metals") is
pleased to announce that drilling is currently underway at its Kay Mine Project, located near Black Canyon City, Arizona (Figure
1). The first drill was delivered to site on Thursday, May 21, 2020, and began turning on Friday, May 22, 2020. The second drill is
scheduled to be delivered on Thursday, May 28, 2020.
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 15th, 2020
press release, and Tables 2 and 3 below). A single hole was drilled into the South Zone and intersected gold-zinc massive
sulphide mineralization at a vertical depth of 575 m.
Figure 1: Drill number 1 at the Kay Mine Project, currently drilling hole KM-20-10 in the South Zone
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5988/56579_47667ef7143819ae_001full.jpg
Continuation of Phase 1 Drill Program - Targeting New Gold-Zinc Rich South Zone Intersected by KM-20-09
Hole KM-20-09 intersected 6.1 m at a grade of 4.2 g/t gold and 8.0% zinc, at a vertical depth of 570 m in the South Zone. Hole
KM-20-10 is currently underway and is targeting the 1500-foot level of the South Zone, at a vertical depth of 500 m (Figure 2). On
completion of hole KM-20-10, the Company intends to use it as a trunk hole, from which at least two branch holes will be
wedged; holes KM-20-10A and KM-20-10B. The Company is targeting hole KM-20-14 to test the extensions of this gold-zinc
rich intersection in the South Zone. This hole is intended to be a trunk hole, from which at least two branch holes will be wedged,
holes KM-20-14A and KM-20-14B.
Expanding Confidence in North Zone Targets at Depth
It is expected that hole KM-20-11 will start on Friday, May 29, 2020, once the second drill has been delivered to site. This hole
will target the 1500-foot level of the North Zone, at a vertical depth of 500 m, expanding confidence in the zone at depth as the
first 6 holes targeted only to a depth of 170 m. On completion, the Company intends to use this hole as a trunk hole, from which
at least two branch holes will be wedged, holes KM-20-11A and KM-20-11B. The use of branch holes, combined with directional
drilling, has the potential to significantly reduce the cost and time to reach individual drill targets, while also improving the
accuracy of targeting. Hole KM-20-12 is targeted at historic gold- and copper-rich samples on the 1350-foot level of the South
Zone. Hole KM-20-13 is targeted at historic gold- and copper-rich samples on the 1000-foot level of the North Zone. The
proposed hole locations for the completion of the Phase 1 program can be found in Table 1 and Figure 2 below.
Table 1. Proposed Hole Locations for Completion of Phase 1 Program at Kay Mine, Arizona
To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5988/56579_47667ef7143819ae_002full.jpg
Figure 2: 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.
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/5988/56579_47667ef7143819ae_003full.jpg
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).
To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5988/56579_47667ef7143819ae_004full.jpg
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 (Figure 2).
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).
To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5988/56579_47667ef7143819ae_005full.jpg
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).
Financing Update
On May 13th, 2020, Arizona Metals announced that Stifel GMP and Canaccord Genuity Corp, the "Underwriters," had agreed to
increase the Underwriter's Option to 4,650,000 units, which if exercised in full will results in gross proceeds to the Company of
$6,045,000. The completion of the Offering shall be subject to, among other things, the receipt of all necessary regulatory and
stock exchange approvals relating to the Offering as are appropriate in the circumstances, including the approval of the TSX
Venture Exchange (the "TSXV") prior to the Closing Date, on or about May 29, 2020.
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 0.5 g/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 received approval of its drill permit at Sugarloaf, and has submitted a reclamation bond with the Bureau of
Land Management. The 5,000 m core and RC drill program is intended to test the strike extensions of the Sugarloaf deposit,
and test geophysical anomalies. Preparations are underway for drilling of the first three holes, intended to test deep geophysical
anomalies and potentially provide material for metallurgical testing, planned to consist of bottle-roll and column leach recovery
tests.
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).
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' 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.
NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
For further information, please contact:
Marc Pais
President and CEO Arizona Metals Corp.
(416) 565-7689
www.arizonametalscorp.com
https://twitter.com/ArizonaCorp
Not for distribution to US newswire services or for release, publication, distribution or dissemination directly, or
indirectly, in whole or in part, in or into the united states
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/56579