Arizona Metals drills 4.9 m of 6.2% CuEq at Kay

2020-06-29 16:24 ET – News Release

Mr. Marc Pais reports

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

Arizona Metals Corp.’s drilling at the south zone of its Kay mine project, located near Black Canyon City, Ariz., has intersected massive sulphide mineralization in an area previously untested by historic exploration. Hole KM-20-10 intersected an interval of 4.9 metres at a grade of 6.2 per cent copper equivalent, including three m at a grade of 7.8 per cent CuEq, from a vertical depth of 480 m.

Further down hole, from a vertical depth of 491 m, KM-20-10 also intersected an interval of 0.6 m at a grade of 9.6 grams per tonne gold equivalent and 1.6 m of 3.1 per cent copper equivalent from a depth of 494 m.

Marc Pais, chief executive officer, 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 nine 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 under way (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 6, 2020, at our Sugarloaf Peak project, which has a historic estimate of 1.5 million ounces of gold.”

Drill hole KM-20-10 is located approximately 40 m below the 1,500-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 grams per tonne gold equivalent (see an attached table).

Hole KM-20-10 is being used as a trunk hole in order to wedge a number of branch holes aimed at the 1,500-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 have been submitted to ALS Laboratories in Tucson, Ariz. Branch hole KM-20-10B is currently in progress.

Hole KM-20-11 was drilled to target the 1,500-foot level of the north zone at a target depth of 550 m. Samples of this hole have been submitted to ALS Laboratories for assay. Hole KM-20-12 was drilled to target the 1,200-foot level of the north zone at a target depth of 300 m. Samples of this hole have been submitted to ALS Laboratories for assay.

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 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 (see April 15, 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 to 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 per cent CuEq (including 0.9 m of 10.32 per cent CuEq) from a depth of 120 m;
  • KM-20-03A — 4.6 m grading 6.85 per cent CuEq (including 0.8 m of 18.19 per cent CuEq) from a depth of 122 m;
  • KM-20-05 — 2.4 m grading 9.19 per cent CuEq (including 1.2 m of 13.89 per cent CuEq) from a depth of 150 m;
  • KM-20-06 — 13.5 m grading 2.92 per cent CuEq (including 4.9 m of 4.54 per cent CuEq) from a depth of 158 m.

Summary of south zone drill results (see April 28, 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 575 m, with the following highlighted interval:

  • KM-20-09 — 6.1 m grading 7.8 g/t gold equivalent, including 4.4 m grading 9.3 g/t AuEq and also including 1.1 m grading 16 g/t AuEq.

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 per cent copper and 1.7 grams per tonne gold (6.5 per cent 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.

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.”

Sugarloaf Peak project update

On July 6, 2020, Arizona Metals will commence a 1,300 m 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, Nev., 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 500 m to test a large geophysical target that the company believes has the potential to host a higher-grade feeder zone, which could be the source of the disseminated oxide mineralization identified by previous operators.

About Arizona Metals Corp.

Arizona Metals owns 100 per cent of the Kay mine property in Yavapai county, which is located on a combination of patented and Bureau of Land Management claims totalling 1,300 acres that are not subject to any royalties.

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 protocol that includes the insertion of blind standard reference materials and blanks at regular intervals. Logging and sampling were completed at Arizona Metals’ core handling facilities in Anthem and Black Canyon City, Ariz. Drill core was diamond sawn on site, and one-half drill core samples were securely transported to ALS Laboratories’ sample preparation facility in Tucson, Ariz. 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). Overlimit samples for silver, copper and zinc were determined by ore-grade analyses Ag-OG62, Cu-OG62 and Zn-OG62, respectively.

ALS Laboratories is independent of Arizona Metals, and its Vancouver facility is ISO 17025 accredited. ALS also performed its own internal quality assurance/quality control procedures to assure the accuracy and integrity of results. Parameters for ALS’s 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.

We seek Safe Harbor.

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