Arizona Metals Provides Corporate Update
Arizona Metals Provides Corporate Update
Toronto, February 19, 2025 – Arizona Metals Corp. (TSX:AMC , OTCQ X:AZMCF) (the
“Company” or “Arizona Metals”) is pleased to provide a corporate update. The Company is fully
funded and on track to deliver a Mineral Resource Estimate (“MRE”) in the first half of 2025
followed by a Preliminary Economic Assessment (“PEA”) in the second half of 2025, for its Kay
Mine p roject (the “Kay Project”) located in Yavapai County, Arizona . Ongoing resource and
exploration drilling throughout the year is planned with 17,000 m at the Kay Project and 5,000 m
at the Company’s Sugarloaf Peak Gold Project (the “Sugarloaf Peak Project”) in La Paz Country,
Arizona. Since the beginning of the year, 2,600 m have been drilled at the Kay and Kay2 Zones at
the Kay Project.
Drilling
The Company currently has two drill rigs targeting an area below the main Kay deposit and the
Kay2 Zone, intended to probe the vertical extents of bot h (Figure 1). These trunk holes will also
be used to wedge back into potential zones of mineralization for both areas. Arizona Metals has
drilled a total of 6,300 m in the Kay2 Zone, with 4,400 additional meters planned for Kay2 and
Kay during Q1 and Q2 of 2025 (Table 1). The Company expects Kay2 Zone mineralization to
contribute to the upcoming MRE for the Kay deposit, which is on track for completion in the first
half of 2025. Arizona Metals has drilled a total of 127,000 meters on the property. Upon
completion of the resource drilling phase the company is planning to conduct a further 10,000
meters of exploration drilling at the Kay Project.
Table 1. Summary of Kay Project drilling progress.
Drilling to date and 2025 Program Meters
Total meters drilled to date 127,000
Meters drilled in Kay2 Zone 6,300
Additional meters planned at Kay+Kay2 Q1-Q2 4,400
Meters planned for exploration targets Q2-Q4 10,000
Figure 1. Oblique view of Kay deposit looking to the northeast, showing recent drill results
and projected locations of deep drill holes below Kay and the Kay2 zone.
Permitting
The new federal administration in the United States has introduced significant changes in priorities
for permitting of natural resource projects. In order to fully benefit from these changes, the
Company has decided to retract its current Exploration Plan of Operations (“EXPO”) and resubmit
the plan during the third quarter of 2025. The limiting factor for resubmission of the EXPO are
primarily the timing required for certain biological survey protocols. The Company feels that ,
among other changes, extending the biological and cultural reviews in support of the EXPO will
reduce risks associated with the development of the project and more fully inform plans for mine
production permitting. By updating the E XPO, Arizona Metals believes that it will save time
during the permitting approval process, the environmental review, and overall development of the
Kay Project. The company has also engaged WestLand Resources, a proven permitting team, to
better align the Company’s permitting objectives with these administrative changes .
The Company is currently conducting site activities under a Notice of Intent (“NOI”) which is
limited to 5 acres of disturbance on the property. Currently there are 14 drill pads and access roads
permitted. Once the Company finishes the resource drilling on the Kay and Kay2 deposits in Q2,
2025, its focus will transition to the exploration drilling on the Central and Western targets . The
Company plans to amend the current NOI to permit and build 6 additional drill pads and access
roads which will allow for the probing of these targets as planned (Figure 2). These drill pads will
be located to test m ultiple exploration targets including the Kay North Extension (pads 11, 12
&16), North Central Target (pads 13 & 14) and the North West target. (pad 15). The Company has
previously amended its current NOI seven times, and understands the relatively straightforward
nature of the amendment process and does not anticipate any additional bonding costs. This
planned amendment will allow Arizona Metals to achieve its stated exploration objectives while
the Company proceeds towards EXPO approval under the revised approval timelines.
Duncan Middlemiss, President and CEO of Arizona Metals, comments : “With the new federal
administration, there is a renewed focus on resource extraction in both oil and minerals. It is
expected that process for managing reviews, that was present during the current administration’s
first term, will be put back in place and improved upon, which will include goals and timelines for
review and consultations . By resubmitting our E XPO in the third quarter of 2025 the Company
expects an improved timeline for derisking the project , while still being able to drill our North
Extension, North Central and Western targets in the second half of 2025.
Additionally, the Mineral Resource Estimate (MRE) is slated for delivery by the end of H1. SGS
Canada will be the primary consultants charged with conducting the initial estimate, and G Mining
Services will provide a third -party independent MRE audit. This MRE will then lead into the
technical work to be conducted in support of the Kay Mine PEA in H2 2025.”
Figure 2. Map showing proposed additional drill pads and access roads in yellow, planned to be permitted under the
current Notice of Intent to Explore. Existing pads and roads in blue.
Sugarloaf Peak Gold Project
Arizona Metals second project is the 100% owned Sugarloaf Peak Project, in La Paz County, which
is located on 4,400 acres of BLM claims. The Company is currently planning an initial 5,000 meter
reverse-circulation drilling program at the Sugarloaf Peak Project to extend mineralization both
along strike and to depth and to verify historic drilling. Past drilling has been relatively shallow
(averaging about 75-125 m) but Arizona Metals’ drilling and metallurgical testing indicated good
potential for processing of deeper sulfide mineralization; the planned drilling intends in part to test
the extent to sulfide mineralization on the proj ect. Under the current NOI there are 26 drill pads
permitted. The Company expects to begin drilling early in the second half of 2025.
The Sugarloaf Peak Project 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.
About Arizona Metals Corp
Arizona Metals Corp owns 100% of the Kay Project in Yavapai County, which is located on 1669
acres of patented and BLM mining claims and 193 acres of private land 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 Project 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 Project’s 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 Project 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 Project, in La Paz County, which is located
on 4,400 acres of BLM claims. The Sugarloaf Peak Project 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 Project 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 and 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 Phoenix 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, and Reno, Nevada, 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 and Reno facilities
are 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.
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. Mr. Smith supervised the
drill program and verified the d ata disclosed, including sampling, analytical and QA/QC data,
underlying the technical information in this news release, including reviewing the reports of ALS,
methodologies, results, and all procedures undertaken for quality assurance and quality control in
a manner consistent with industry practice, and all matters were consistent and accurate according
to his professional judgement. There were no limitations on the verification process.
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 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 expansion potential of the Kay Project, statements regarding
drill results and future drilling of the Kay2 and Kay during Q1 of 2025, statements regarding
amendments under the current NOI and permitting of additional drill pads and roads, statements
regarding the refiling of the EXPO, the completion of ecological, biological and cultural studies,
and the success and speed of EXPO approval ; statements regarding anticipated impacts of the
change in federal administration on mineral resource exploration permitting; the contribution of
the Kay2 Zone mineralization to the mineral resource estimate for the Kay deposit, and the mineral
resource estimate being completed in H1 2025 and the PEA being completed in H2 2025 ; and
statements regarding drilling at the Sugarloaf Peak Project . 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 the
Company to stay well funded; 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. Exce pt 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.
THE TORONTO STOCK EXCHANGE HAS NEITHER REVIEWED NOR 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
For further information, please contact:
Morgan Knowles
Vice President of Investor Relations
(647) 202-3904
or
Duncan Middlemiss
President and CEO
www.arizonametalscorp.com
https://x.com/ArizonaCorp