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Arizona Metals Corp Announces Metallurgical Drill Program at its Sugarloaf Peak Project in La Paz County, Arizona

T.AMC

Toronto, Ontario--(Newsfile Corp. - June 15, 2020) - Arizona Metals Corp. (TSXV: AMC) (the "Company" or "Arizona Metals") is pleased to announce that on July 6th, 2020 it will commence a 1,300m drill program at its Sugarloaf Peak Project in La Paz County, Arizona. Drill core from two 150m holes will be sent to Kappes Cassiday and Associates of Reno, Nevada, 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, Nevada for gold assay, multi-element 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 (Figure 1) 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 locations, dips, and azimuths of the four planned holes are detailed in Table 1 below.

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 sulfide 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.

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/5988/57881_8346ce64949d1a98_001.jpg
Figure 1. Sugarloaf Peak cross section looking northwest, displaying historic drill holes and coincident high IP chargeability and high resistivity geophysical anomalies located directly below the historic estimate, and structures interpreted from resistivity.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5988/57881_8346ce64949d1a98_001full.jpg

Table 1. Sugarloaf planned drill hole locations and orientations

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/5988/57881_8346ce64949d1a98_002.jpg

To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/5988/57881_8346ce64949d1a98_002full.jpg

Marc Pais, CEO of Arizona Metals Corp., 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 300m 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 is 100% owned by Arizona Metals Corp. with no future payments

  • Located on 4,400 acres of BLM claims in mining-friendly La Paz County, Arizona

  • Historic estimate of "100 million tons containing 1.5 million ounces gold"*at a grade of 0.5 g/t (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% (inline with heap-leach mines currently in operation)

About Arizona Metals Corp

Arizona Metals Corp owns 100% of the Kay Mine Property in Yavapai County, which is located on a combination of patented and BLM claims totaling 1,300 acres 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 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, 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 Mine 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 Property, in La Paz County, which is located on 4,400 acres of BLM claims. Sugarloaf 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, 1983, Westworld Resources).

*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. 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.

The Qualified Person who reviewed and approved the technical disclosure in this release is David Smith, CPG.

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 resumption of drilling and the effects of the COVID-19 pandemic on the business and operations of the Company. 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 financing; 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. Except 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.

NEITHER THE TSX VENTURE EXCHANGE (NOR ITS REGULATORY SERVICE PROVIDER) 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:

Marc Pais

President and CEO Arizona Metals Corp.

(416) 565-7689

mpais@arizonametalscorp.com

www.arizonametalscorp.com

https://twitter.com/ArizonaCorp

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/57881



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