TD yesterday on AZArizona Mining Inc. (AZ-T) C$3.04 Infill Drill Results Highlight Strong Mineralization at Depth Craig Hutchison, P. Eng Derick Ma, (Associate)
Event This morning, Arizona Mining released assay results for three additional drill holes from its ongoing exploration program at its Taylor project. Impact: POSITIVE
The highlight of today's results, in our view, was hole HDS-399, a near vertical infill hole (-87 degrees) drilled on the northeast margin of the previously reported resource area. The hole intersected several mineralized intervals including a 13.7m sub-interval grading 12.72% Zn, 31.70% Pb and 10.43oz/t Ag. We calculate a grade-thickness of 1,417m•% (ZnEq.) for hole HDS-399, which is the third best hole drilled since the updated resource estimate was released on October 31, 2016. Infill hole HDS-401, was a vertical infill hole drilled on the northern margin of the previously reported resource area. The hole intersected several mineralized intervals including a 31.7m interval grading 2.62% Zn, 3.39% Pb and 1.21oz/t Ag. Infill hole HDS-403, was a vertical infill hole drilled on the southwest margin of the previously reported resource area. The hole intersected several mineralized intervals including a 10.4m interval grading 6.72% Zn, 18.90% Pb and 6.40oz/t Ag. The company is currently undertaking an aggressive drilling program including a combination of step-out and infill drill work to expand and upgrade the existing resource estimate. The company is also completing metallurgical testing as part of its preliminary economic assessment (PEA, expected end of Q1/17) to determine the distribution of manganese within its deposit and potential treatment options. Following the completion of the metallurgical work, the company believes it will be in a position to address interest from various parties regarding offtake arrangements. We continue to view the PEA and the Feasibility Study (expected in Q4/17) to be key catalysts to the company's share price over the next 12 months