Arizona Metals starts 1,300m drill program at Sugarloaf

2020-07-07 06:09 ET – News Release

Mr. Marc Pais reports

ARIZONA METALS CORP ANNOUNCES START OF DRILLING AT ITS SUGARLOAF PEAK PROJECT HEAP-LEACH GOLD-OXIDE TARGET IN LA PAZ COUNTY, ARIZONA; TWO DRILLS CONTINUE TURNING AT THE KAY MINE GOLD-COPPER VMS PHASE 1 PROGRAM IN YAVAPAI COUNTY, ARIZONA

Arizona Metals Corp. has commenced a 1,300-metre drill program at its Sugarloaf Peak project in La Paz county, Arizona. Drill core from two 150-metre holes 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. Samples will also be sent to ALS Minerals in Reno, Nev., for gold assay, multielement testing and spectral analysis to determine trace element levels and hydrothermal alteration variations.

Another two cored drill holes will be extended to depths of 450 m and 550 m to intersect a large, untested 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 at surface in the historic estimate.

The geophysical target is based on induced polarization (IP) data showing coincident high chargeability and high resistivity. Chargeability high anomalies often indicate the presence of sulphide minerals such as pyrite, and resistivity highs may indicate alteration minerals such as quartz. The mineralization identified to date at Sugarloaf contains both pyrite and quartz.

Marc Pais, chief executive officer of Arizona Metals, commented: “While our primary focus remains on the high-grade Kay mine VMS project where we have two drills turning, we believe there is significant unrecognized value in the Sugarloaf project. We will first follow up on promising initial metallurgical testing completed by Kinross in 2009 and Agnico in 2013 to demonstrate that Sugarloaf has the characteristics required of a viable heap leach mining operation. We will also be testing a large IP geophysical target located about 300 m below the historic estimate that we believe has the potential to host higher-grade feeder zones. The IP targets were identified in 2012 but never drill tested.”

Sugarloaf Peak highlights:

  • Project 100 per cent owned by Arizona Metals with no future payments;
  • Located on 4,400 acres of BLM (Bureau of Land Management) claims in mining-friendly La Paz county, Arizona;
  • Historic estimate of 100 million tons containing 1.5 million ounces gold (1) at a grade of 0.5 gram per tonne (Dausinger, 1983, Westworld Resources);
  • Heap leach, open-pit target that starts at surface and is tabular with no dip;
  • Open for expansion at depth and on strike;
  • Metallurgical testing (bottle roll) by Kinross (2009) and Agnico (2013) achieved gold recoveries of up to 73 per cent (in line with heap-leach mines currently in operation).

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 BLM claims totalling 1,300 acres that are not subject to any royalties. A 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 per cent copper, 2.8 g/t gold, 3.03 per cent 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, redrilling 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 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, 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, Ariz. Drill core was diamond sawn on site and 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 (inductively coupled plasma) 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 QA/QC 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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