Arizona Metals Corp Provides Corporate and Exploration Updates
Arizona Metals Corp Provides Corporate and Exploration Updates
TORONTO--(BUSINESS WIRE)--January 3, 2023--Arizona Metals Corp. (TSX:AMC,
OTCQX:AZMCF) (the “Company” or “Arizona Metals”) is pleased to provide a year-end review
and updates on both its Kay and Sugarloaf Projects. During 2022, the Company completed
approximately 33,000 metres of core drilling at the Kay Mine Deposit (some highlights below),
received drill permits for both the Central and Western Targets, and initiated drilling on targets
outside the Kay Mine Deposit.
Marc Pais, CEO, commented “As we begin 2023, I want to take a moment to reflect on the past
year and share some of our accomplishments. First, I want to thank our shareholders for your
continued support and belief in Arizona Metals. Your trust and investment has been a driving
force in creating one of the best-financed explorers listed on the TSX, and advancing what we
believe to be one of the world’s premier VMS exploration projects.
This past year has been a challenging one, with the global pandemic continuing to delay some
aspects of our work programs. Despite these challenges, our team has remained focused and
dedicated to delivering on our commitments and adapting to the changing landscape. We are
pleased to report that towards the end of 2022 we did see a marked improvement in permitting
timelines, and the Kay Mine Project is now fully-permitted to complete the Phase 3 drill program
of 76,000 metres.
Looking forward, we will continue to focus on delivering value and driving long-term growth for
our shareholders, alongside the Kay and Sugarloaf local communities.”
The Company is fully-funded (with $58 million in cash at Sept 30, 2022) to complete the
remaining 8,600 meters planned for the Phase 2 program at Kay (budgeted at $3.6 million), as
well as an additional 76,000 meters in the Phase 3 program (budgeted at $32 million), which will
be used to test the numerous parallel targets heading west of the Kay Mine Deposit, as well as
possible northern and southern extensions of the Kay Mine Deposit.
2022 Highlights:
December 2022: Roadwork to Western Target commenced
November 2022: Initiated drilling from Central pads
November 2022: Completed Central Target roads and pads
October 2022: Received Western Target drill and road permits
October 2022: Welcomed Rosa Rojas Espinosa, MSc, as an Independent Director to the Board
October 2022: Graduated from the TSX Venture Exchange to TSX
September 2022: Surpassed 70,000 m drilling on the Kay project
June 2022: Included in the TSX Battery Metals Index
June 2022: Received Central Target drill and road permits
April 2022: Warrant exercises increased working capital by $15 million
2022 Kay Mine Project Drilling Highlights:
KM-22-60: 93.3 m at 8.3 g/t AuEq, incl. 17.5 m at 29.6 g/t AuEq
KM-22-58: 68.4 m at 7.2 g/t AuEq, incl. 7.3 m at 10.1 g/t AuEq and 10.5 m at 22.9 g/t AuEq
KM-22-57C: 100.9 m at 2.5% CuEq, incl. 8.5 m at 8.6% CuEQ and 5.3 m at 6.6% CuEq
KM-22-74: 39.0 m at 4.2 g/t AuEq, incl. 7.2 m at 6.0 g/t AuEq and 9.8 m at 6.1 g/t AuEq
KM-22-57B: 125.3 m at 3.2% CuEq, incl. 1.8 m at 9.9% CuEq and 7.3 m at 7.7% CuEq
Kay Mine Project Update
Exploration Drilling
In October 2022, the Company announced that it had received permit approval from the Bureau
of Land Management (“BLM”) for two new drill pads, located approximately 1,200 metres west
of the Kay Mine Deposit (pads W1 and W2 in Figure 1 below). These new pads will allow for
testing of the Western Target, while also allowing for drilling of additional coincident anomalies
located between the Central and Western Targets. The Central and Western Targets were
previously defined based on coincident structural, geochemical, and geophysical anomalies
(through extensive ground mapping, electromagnetic and gravity surveys).
A bond in the amount of US$21,398 for pads W1 and W2 was posted with the BLM and
approved in December 2022. Road construction for the Western pads commenced in December
2022, with completion expected in Q1’2023. Construction of the Central Target drill roads and
pads was also completed in November 2022, and drilling from Central pad C1 commenced in
November 2022.
There are currently 6 holes with assays pending from the Kay Mine Deposit and 9 holes from
testing targets north and south of the main Kay deposit (from pads 4, 5, and 6). For the Central
Target, there are 6 holes pending from pad 7, drilled from east to west, and one hole from pad
C1, drilled from west to east.
Kay Metallurgical Testing
SGS Canada Inc. has created four composites from Kay drill hole samples, which include copper
mineralization, zinc-lead mineralization, zinc-lead-copper mineralization, and high-grade gold
mineralization. Test work underway includes bond work index, flotation, density, gravity
recovery, and detailed characterization of mineralogy. Results are expected in H2’2023.
Sugarloaf Metallurgical Testing
As a follow up to successful Bottle Roll tests completed on Sugarloaf drill core in 2021 (average
recoveries of 76% Au with cyanide leaching), approximately 700 kg of additional drill core is
undergoing conventional crushing, high-pressure grinding, agglomeration, and cyanide leaching
at Kappes Cassiday and Associates’ facilities in Nevada. Results are expected during H1’2023.
Table 1: 2022 Kay Mine Project Drilling Highlights
Analyzed Grade Analyzed Metal
Equivalent
Metal Equivalent
Hole ID
From
m
To
m
Length
m Cu % Au g/t Zn %
Ag
g/t Pb %
Cu
eq %
Au eq
g/t
Zn
eq%
Cu
eq %
Au eq
g/t
Zn
eq%
KM-22-
57B 736.7 862.0 125.3 2.40 0.90 1.29 18.7 0.13 3.62 5.93 9.42 3.20 5.25 8.33
including 739.7 741.6 1.8 9.42 2.37 0.32 8.5 0.03 11.06 18.12 28.76 9.93 16.28 25.84
including 798.3 805.6 7.3 6.35 0.81 3.76 19.5 0.14 8.47 13.89 22.04 7.72 12.65 20.08
KM-22-
57C 784.3 885.1 100.9 1.24 1.54 1.56 25.8 0.14 3.02 4.95 7.85 2.54 4.16 6.61
including 829.4 837.9 8.5 1.60 7.71 9.04 100.9 0.35 10.66 17.47 27.72 8.62 14.14 22.43
including 852.2 857.6 5.3 6.81 0.10 0.09 23.3 0.02 7.10 11.63 18.46 6.55 10.73 17.03
KM-22-58 614.2 682.6 68.4 1.30 3.42 3.85 47.2 0.50 5.35 8.78 13.93 4.40 7.22 11.45
including 640.7 648.0 7.3 0.79 4.34 10.20 51.9 0.56 7.90 12.94 20.54 6.60 10.83 17.18
including 668.1 678.6 10.5 5.30 12.19 6.67 194.7 1.88 17.26 28.30 44.90 13.98 22.92 36.37
including 668.1 669.6 1.5 2.55 43.20 7.76 856.0 0.80 38.86 63.69 101.08 28.62 46.90 74.43
KM-22-60 554.7 648.0 93.3 1.36 5.65 3.25 32.6 0.34 6.39 10.47 16.62 5.08 8.32 13.21
including 591.6 597.7 6.1 0.58 5.62 12.00 56.3 1.40 9.37 15.37 24.38 7.78 12.75 20.24
including 627.0 644.5 17.5 5.22 25.37 4.71 100.6 0.59 23.44 38.42 60.98 18.05 29.59 46.95
including 634.3 635.5 1.2 5.63 273.00 0.18 715.0 0.28 177.99 291.74 462.98 126.03 206.57 327.82
KM-22-74 649.2 688.2 39.0 0.40 1.77 3.39 30.5 0.32 3.09 5.07 8.05 2.56 4.20 6.67
including 652.6 659.8 7.2 0.68 2.57 5.13 18.0 0.11 4.39 7.19 11.42 3.67 6.02 9.55
including 678.5 688.2 9.8 0.15 3.08 5.67 32.0 0.51 4.57 7.50 11.90 3.74 6.13 9.73
The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 76%. (2)
Assumptions used in USD for the copper and gold Metal Equivalent calculations were metal prices of $4.63/lb
Copper, $1937/oz Gold, $25/oz Silver, $1.78/lb Zinc, and $1.02/lb Pb. Assumed metal recoveries (rec.), based on a
preliminary review of historic data by SRK and ProcessIQ1, were 93% for copper, 92% for zinc, 90% for lead, 72%
silver, and 70% for gold. The following equation was used to calculate copper equivalence: CuEq = Copper (%)
(93% rec.) + (Gold (g/t) x 0.61)(72% rec.) + (Silver (g/t) x 0.0079)(72% rec.) + (Zinc (%) x 0.3844)(93% rec.)
+(Lead (%) x 0.2203)(93% rec.). The following equation was used to calculate gold equivalence: AuEq = Gold
(g/t)(72% rec.) + (Copper (%) x 1.638)(93% rec.) + (Silver (g/t) x 0.01291)(72% rec.) + (Zinc (%) x 0.6299)(93%
rec.) +(Lead (%) x 0.3609)(93% rec.). Analyzed Metal Equivalent calculations are reported for illustrative purposes
only. The metal chosen for reporting on an equivalent basis is the one that contributes the most dollar value after
accounting for assumed recoveries.
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” (as defined in National Instrument 43-101 – Standards
of Disclosure for Mineral Projects) 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.
Qualified Person
The qualified person who reviewed and approved the technical disclosure in this release is David
Smith, CPG, a qualified person as defined in National Instrument43-101–Standards of
Disclosure for Mineral Projects. Mr. Smith supervised the preparation of the scientific and
technical information that forms the basis for this news release and has reviewed and approved
the disclosure herein. Mr. Smith is the Vice-President, Exploration of the Company.
Disclaimer
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 drill results and future
drilling and assays, 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
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
1 SRK Consulting (Canada) Inc., March 2022, Updated Metallurgical Review, Kay Mine, Arizona. Report
3CA061.004
Contacts
For further information:
Marc Pais
President and CEO Arizona Metals Corp.
(416) 565-7689
www.arizonametalscorp.com
https://twitter.com/ArizonaCorp