Arizona Metals Corp T.AMC

Alternate Symbol(s): AZMCF

Metals & Mining Industrial Metals & Minerals

Arizona Metals Corp. is a Canada-based mineral exploration company. The Company is focused on the exploration and development of mineral resource properties in Arizona. The Company, through its wholly owned subsidiaries, owns 100% of the Kay Mine Project (the Kay Mine Project), located in Yavapai County, Arizona, United States, and 100% of the Sugarloaf Peak Gold Project (the Sugarloaf Peak Project) located in La Paz County, Arizona, United States. The Kay Mine Property in Yavapai County, which is located on a combination patented and BLM claims totaling 1,665 acres and 193 acres of private land. 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. The Company also owns 100% of an Arizona State Land parcel totaling 40 acres (the Property), located 400 meters northeast of its Kay Mine property. Its wholly owned subsidiary is Croesus Gold USA Corp.

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Arizona Metals Corp

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Post by SPACEDOCon Aug 30, 2023 8:53am

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Post# 35611528

Beacon report on Arizona

Arizona Metals Corp. (AMC-T)

View Full Report (PDF)

12 Month Target: $10.50 (unch) | Buy (unch)

Acquires Important Private Land Position

Arizona Metals announced that it has entered into an agreement to acquire 100% of a private land parcel totaling 46.4 acres for a purchase price of US$2.5MM. The property is located 950m northeast of its Kay Mine Deposit. It includes the surface, mineral, and water rights, among other rights and benefits.

AMC has now increased its private landholding by ~40%. Including the 71 acres of patented land that host the Kay Mine Deposit, the acquisition increases AMC’s total holdings of private and patented land to 224 acres.
The acquisition of the property significantly de-risks the permitting process when AMC decides to proceed to production decision. The steps required for permitting on private land, relative to BLM land, are likely to be less stringent.
Additionally, the property is already zoned as commercial. It is in a flat topography and “disturbed” area, located behind a cliff. Hence any infrastructure located there would not affect the viewshed, especially from the nearby town. It also would potentially not constitute a new disturbance.
The property is contiguous with a 107 acres of patented land AMC acquired in January 2021. Collectively, AMC’s private landholding gives the company sufficient and suitable ground where it can place future mine infrastructure.
The over 150-acre private land footprint could potentially accommodate infrastructure required for 3,000tpd to 6,000tpd milling rate (between 1.0MMtpa to 2.0MMtpa).
With over $44MM of cash in hand, as of June 30, 2023, AMC is well funded to complete its currently ongoing exploration programs and acquire additional land.

Valuation: AMC is trading at ~0.18x P/NAV. Our valuation is now based on a conceptual minable resource of 20MMt, through a milling rate of 1.6MMtpa and 80% base metal recovery and 60% for precious metals. We use a 0.70x NAV multiple, a discount rate of 7% and corporate adjustments to derive our price target. Our assumptions are informed by AMC’s exceptional exploration success thus far. We maintain a BUY and a 12-month target price of $10.50 per share.

Catalysts

Continuous drill results through FY23 from ~1,250m Phase 2 drilling program and 76,000m Phase 3 drilling.
Potentially more permitting at Central and Western targets.
- Expand permitting and start EPO.
Resource modeling underway & MRE.
General and continued exploration results through 2023.
Potential M&A at Sugarloaf Peak.
Further metallurgical tests.