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
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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
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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
Hole ID Drill Pad Zone Collar
East
WGS84
Collar
North
WGS84
Collar
Elev m
Collar
Az
Collar
Dip
KM-20-01 Pad 1 North 392684 3769388 643 78 -48
KM-20-02 Pad 1 North 392684 3769388 643 75 -50
KM-20-03 Pad 1 North 392684 3769388 643 72 -43.3
KM-20-03A Pad 1 North 392684 3769388 643 72 -43.3
KM-20-04 Pad 1 North 392684 3769388 643 65.1 -47.5
KM-20-05 Pad 1 North 392684 3769388 643 73.3 -47.2
KM-20-06 Pad 1 North 392684 3769388 643 81.3 -48.3
KM-20-07 Pad 1 North 392684 3769388 643 85.6 -47.6
KM-20-08 Pad 2 South 392638 3769266 653 91.1 -77.1
KM-20-09 Pad 2 South 392638 3769266 653 92.1 -77
KM-20-10 Pad 2 South 392638 3769266 653 96.3 -72.2
KM-20-10A Pad 2 South 392638 3769266 653 96.3 -72.2
KM-20-10B Pad 2 South 392638 3769266 653 96.3 -72.2
KM-20-11 Pad 3 North 392552 3769328 638 57.3 -67.5
KM-20-12 Pad 1 North 392684 3769388 643 95.7 -70.8
KM-20-13 Pad 1 North 392816 3769463 281 124 -66.5
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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
Hole ID From (m) To (m)
Vertical
Depth
Below
Surface (m)
Interval
Length (m)
(1)
CuEq %
(2) Au g/t Ag g/t Cu % Pb % Zn %
KM-20-01 275.8 281.5 156 5.6 1.70 0.48 11.6 0.57 0.18 1.20
including 275.8 276.5 0.6 4.23 1.22 32.0 0.50 0.73 5.04
and 279.8 281.5 1.6 3.10 0.98 22.6 1.21 0.23 1.49
KM-20-02 297.8 300.8 172 3.0 1.01 0.20 1.4 0.77 0.01 0.04
KM-20-03 256.3 259.1 120 2.7 5.41 1.01 69.6 3.40 0.09 0.65
including 256.3 257.3 0.9 10.32 1.79 56.0 7.42 0.17 1.11
KM-20-03 292.2 292.6 152 0.5 2.72 0.19 2.0 2.43 0.04 0.15
KM-20-03 295.8 296.3 154 0.5 2.61 0.80 6.0 1.35 0.06 0.91
KM-20-03A 252.4 256.9 122 4.6 6.85 2.55 35.6 3.70 0.03 0.27
including 252.4 253.1 0.8 18.19 6.34 164.0 9.74 0.11 0.40
KM-20-05 266.6 269.0 150 2.4 9.19 1.94 43.3 6.47 0.14 0.57
including 266.6 267.8 1.2 13.89 2.21 50.0 10.60 0.26 1.05
KM-20-06 267.9 281.5 158 13.5 2.92 0.85 45.6 1.02 0.30 1.23
including 267.9 268.4 0.5 6.73 2.20 31.0 1.54 0.81 6.10
and 276.6 281.5 4.9 4.54 0.87 92.1 1.86 0.42 1.96
and 280.0 281.0 1.1 7.82 1.03 340.0 3.22 0.04 0.64
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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, “i socl i nal
fol di ng of t h e massi ve su l p h i de h or i zon atKay M i ne cou l d h ave r esu l t ed i n t h e for mat i on of a
nu mber of
en- ech el on ci g ar - sh ap ed massi ve su l p h i de bou di ns wi t ht h e l ong est axes p ar al l el t o t h e p l u ng e of
t h e fol d axes.Th e N or t h and Sou t h M i ner al i zed Zone cou l d r ep r esent t wo of t h ese l enses, bu t
sever al mor e may occu rt o t h e sou t hal ongst r i k e of t h e Kay M i ne h or i zon” (Westra, 1977).
Sugarloaf Peak Project Update
On July 6 th, 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
Hole ID From m To m
Vertical
Depth Below
Surface m Length m CuEq % Au eq g/t Au g/t Ag g/t Cu % Pb % Zn %
KM-20-09 588.1 588.4 0.3 3.52 1.74 15.0 0.91 0.40 1.86
KM-20-09 613.4 614.1 0.7 3.15 1.81 10.0 0.90 0.08 1.04
KM-20-09 614.6 614.9 0.3 3.41 0.36 19.0 2.64 0.10 0.98
KM-20-09 632.8 638.9 575 6.1 7.80 4.18 41.7 0.12 0.82 8.02
including 633.6 637.9 4.4 9.29 5.46 33.1 0.15 0.50 9.06
and 636.9 637.9 1.1 16.03 9.77 68.0 0.17 0.78 14.65
KM-20-10 563.6 568.5 480 4.9 6.24 2.16 24.9 2.39 0.31 3.27
including 563.6 566.6 3.0 7.78 2.42 28.2 3.66 0.32 3.16
and 567.2 568.5 1.2 5.33 2.52 28.4 0.33 0.43 5.10
KM-20-10 574.2 574.9 491 0.6 9.56 4.33 113.0 0.12 0.16 11.30
KM-20-10 577.7 579.3 494 1.6 2.93 0.70 45.9 0.03 0.68 4.38
KM-20-10 582.3 583.1 0.8 2.29 0.42 51.0 0.03 1.07 2.90
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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
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accuracy or reliability of the data referred to herein.
Th i s p r ess r el ease cont ai ns st at ement s t h at const i t u t e “ for war d- l ook i ng i nfor mat i on”
( col l ect i vel y, “ for war d- l ook i ng st at ement s”) wi t h i n t h e meani ng of t h e ap p l i cabl e C anadi an
secu r i t i es l eg i sl at i on, A l lst at ement s, ot h er t h an st at ement s of h i st or i ca lfact , ar e for war d-
l ook i ngst at ement s and ar e based on exp ect at i ons,est i mat es and p r oj ect i ons as at t h e dat e of t h i s
news r el ease. A ny st at ementt h atdi scu sses p r edi ct i ons,exp ect at i ons,bel i efs,p l ans,p r oj ect i ons,
obj ect i ves,assu mp t i ons,fu t u r e event s orp er for mance ( oft en bu t not al ways u si ngp h r ases su chas
“ exp ect s”,or“ does not exp ect ”,“ i s exp ect ed”,“ ant i ci p at es” or“ does not ant i ci p at e”,“ p l ans”,
“ bu dg et ”,“ sch edu l ed”,“ for ecast s”,“ est i mat es”,“ bel i eves” or“ i nt ends” orvar i at i ons of su ch
wor ds and p h r ases orst at i ngt h atcer t ai n act i ons,event s orr esu l t s “ may” or“ cou l d”,“ wou l d”,
“ mi g h t ” or“ wi l l ” be t ak en t o occu rorbe ach i eved)ar e not st at ement s of h i st or i cal fact and may
be for war d- l ook i ng st at ement s.For war d- l ook i ng st at ement s cont ai ned i n t h i s p r ess r el ease
i ncl u de,wi t h ou tl i mi t at i on,st at ement s r eg ar di ngt h e r esu mp t i on of dr i l l i ngand t h e effect s of t h e
C O V I D - 1 9p andemi c on t h e bu si ness and op er at i ons of t h e C omp any.I n mak i ng t h e for war d-
l ook i ngst at ement s cont ai ned i n t h i s p r ess r el ease,t h e C omp any h as made cer t ai n assu mp t i ons.
A l t h ou g ht h e C omp any bel i eves t h at t h e exp ect at i ons r efl ect ed i n for war d- l ook i ngst at ement s ar e
r easonabl e,i t can g i ve no assu r ance t h at t h e exp ect at i ons of any for war d- l ook i ngst at ement s wi l l
p r ove t o be cor r ect . Known and u nk nown r i sk s,u ncer t ai nt i es,and ot h erfa ct or s wh i chmay cau se
t h e act u alr esu l t s and fu t u r e event s t o di ffermat er i al l y fr om t h ose exp r essed ori mp l i ed by su ch
for war d- l ook i ngst at ement s. Su chfact or s i ncl u de,bu t ar e not l i mi t ed t o:avai l abi l i t y of fi nanci ng ;
del ay or fai l u r e t o r ecei ve r equ i r ed p er mi t s or r eg u l at or y ap p r oval s;and g ener albu si ness,
economi c,comp et i t i ve,p ol i t i cal and soci al u ncer t ai nt i es. A ccor di ng l y,r eader s sh ou l d notp l ace
u ndu e r el i ance on t h e for war d- l ook i ng st at ement s and i nfor mat i on cont ai ned i n t h i s p r ess
r el ease.Excep tas r equ i r ed by l aw, t h e C omp any di scl ai ms any i nt ent i on and assu mes no
obl i g at i on t o u p dat e or r evi se any for war d- l ook i ng st at ement s t o r efl ecta ct u alr esu l t s,wh et h er
as a r esu l t of new i nfor mat i on, fu t u r e event s, ch ang es i n assu mp t i ons, ch ang es i n fact or s
affect i ngsu chfor war d- l ook i ngst at ement s orot h er wi se.
N EI TH ER TH E TSX V E N TURE EXC H A N GE ( N O R I TS REGUL A TO RY SERV I C E P RO V I D ER)
A C C EP TS RESP O N SI B I L I TY FO R TH E A D EQ UA C Y O R A C C URA C Y O F TH I S REL EA SE
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
For further information, please contact:
Marc Pais
President and CEO Arizona Metals Corp.
(416) 565-7689
www.arizonametalscorp.com
https://twitter.com/ArizonaCorp