Arizona Metals Corp Identifies New High-Priority Kay Mine Targets; Drilling to Commence January 2021
Arizona Metals Corp Identifies New High-Priority Kay
Mine Targets; Drilling to Commence January 2021
TORONTO--(BUSINESS WIRE)--December 10, 2020--Arizona Metals Corp. (TSXV:AMC,
OTCQB:AZMCF) (the “Company” or “Arizona Metals”) announces that a recently completed
review of structural and spectral alteration data from the highly successful Kay Mine Phase 1
drill program (which encountered massive sulphides in 19 of 20 holes) has further improved the
understanding of the geological model of the Kay Deposit, and has identified a number of new
high-priority drill targets.
Drill Mobilization for Kay Phase 2 Program
Arizona Metals has contracted Boart Longyear to mobilize the first drill to the Kay Mine project
on January 4th, 2021. Drilling under the fully-funded Phase 2 program will consist of up to
11,000 m in 29 core drill holes. Drilling will start at the Kay Mine deposit to test for new VMS
lenses in anticlinal hinge zones identified to the north and south of recent drilling, as well as the
up-plunge and down-plunge extensions of known hinges (Figure 1).
Drilling will begin at the Kay Mine targets and progress to targets on strike (north and south) of
the Kay Mine, and then to Central and Western targets as permitting is completed. Permitting is
currently underway for these targets and is progressing well.
Updated Structural and Alteration Modeling
SRK Consulting (Canada) Inc. (“SRK”) completed a data review and interpretation of the
recently completed Phase 1 drill program at the Kay Mine project, including 1,202 spectral
alteration measurements, and combined these with digitized historic data and structural mapping
to undertake sulphide lens modelling and fold modelling to identify new drill targets. Arizona
Metals completed spectral analyses to map alteration within and away from the mineralized
zones. These data were used by SRK to define five alteration types, which can be used as vectors
towards mineralization.
SRK interprets that the thickest and most continuous sulphide lenses are located in anticlinal
hinges, which are the highest priority drill targets, numbered 1 through 8 in Figure 1 below.
Sulphide lenses appear to have a strong down-dip continuity, and the extension of hanging-wall
and footwall contacts will be investigated to the south and north for additional sulphide lenses.
Kay Mine Deposit Proposed Exploration Targets:
Targets 1 and 2: up-plunge and down-plunge along the South Zone anticline hinge
Targets 3 and 4: up-plunge and down-plunge along North Zone anticline hinge
Targets 5: on the fold limb and synclinal hinge between the North and South zones
Target 6: on the southern continuation of hanging wall-footwall horizon
Target 7: on the western limb of the North Zone Anticline
Target 8: on the northern continuation of the hanging wall-footwall horizon
Property Scale Target Review
SRK combined the results of soil sampling with structural maps, historical geological maps, and
VTEM results, to identify high-priority targets to the west of Kay, to be tested by pads C1, C2,
W1, and W2 (Figure 2). Permitting is currently underway to test the Kay Mine deposit on strike
by 500 m to the north (pads 4 and 6) as well as 300 m to the south (pad 5). The Company is also
planning to test the previously undrilled Central and Western Targets in Q1 2021. The total
Phase 2 drill program would consist of up to 11,000 m in 29 core drill holes. Arizona Metals has
completed structural mapping, soil sampling, rock sampling, and a helicopter VTEM survey over
these targets, all of which show coincident anomalies.
Marc Pais, CEO, commented “We were very pleased with our successful Phase 1 drill
program, which has greatly increased our confidence in the model outlined by the Exxon
Minerals’ historic estimate* of 1982. Drilling encountered massive sulphides in 19 of 20 holes.
Recently completed spectral alteration analyses of the Kay Mine Phase 1 program drill core,
along with downhole EM geophysical surveying, has given us an even stronger understanding of
the folding of the Kay deposit at depth. This work has identified a number of high priority drill
targets, which we believe have the potential to host additional VMS lenses, as well as wide
mineralized hinge zones, similar to the 43 m of 3.9% CuEq (incl. 15 m of 6.7% CuEq)
encountered in hole 13. The Phase 2 program, which will commence in early January, has the
potential to significantly expand the scope and scale of the Kay project, well beyond the
boundaries of the 5.8 million tonne historic estimate*.”
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.
(Fellows, M.L., 1982, Kay Mine massive sulphide deposit: Internal report prepared for Exxon
Minerals Company)
*The Kay Mine 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, N.E., 1983, Phase 1 Drill Program and Evaluation of Gold-Silver Potential,
Sugarloaf Peak Project, Quartzsite, Arizona: Report for Westworld Inc.)
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 Au, Ag, Cu, and Zn were determined by ore-
grade analyses Au-GRA21, 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 expecte d”, “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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Contacts
Marc Pais
President and CEO Arizona Metals Corp.
(416) 565-7689
www.arizonametalscorp.com
https://twitter.com/ArizonaCorp