- Arizona Metals owns two highly compelling properties in Arizona, the Kay Mine Project and Sugarloaf Peak
- The company had $58 million in cash at the end of Q3, enough to complete its ongoing Phase 2 drilling program, as well as a large Phase 3 program to continue building the resource at the Kay Mine Deposit, and explore around it for additional deposits
- The latest drill results provided more compelling data, including discovery of a new gold/copper zone and extension of known mineralization
The U.S. mining industry produced $90.4 billion in non-fuel metals in 2021, with Arizona being the single-largest producer on a percentage bases, outshining neighbor Nevada as the only two states to command double-digit share at 11.0% and 10.3%, respectively. Arizona is widely known for its copper and gold prowess, contributing a whopping 71% of the nation’s copper production in 2021. If Arizona Metals (TSX: AMC) (OTCQX: AZMCF) has anything to say about it, the state will continue its dominance for decades to come as it unearths a world-class gold/copper/zinc VMS (volcanogenic massive sulfide) deposit.
The Toronto-based company owns 100% of the Kay Mine Project 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. The deposit is known to be a steeply dipping VMS deposit defined from a depth of 60 meters to at least 900 meters, remaining open on strike and at depth.
An historic estimate by Exxon Minerals in 1982 at the Kay Mine Project reported a proven and probable reserve of 6.4 million short tons at a grade of 2.2% copper, 2.8 g/t (grams per ton) gold, 3.03% zinc, and 55 g/t silver.(1) Miners and explorers cannot rely on historic estimates and Arizona Metals is currently working on verifying the resource, as well as adding to it via expansive drilling programs.
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 by Westworld Resources in 1983 of 100 million tons containing 1.5 million ounces gold at a grade of 0.5 g/t.(2)
As of the end of September, Arizona Metals had $58 million in its coffers, fully funding its exploration plans, including completing the balance of an ongoing 8,500-meter Phase 2 program and an upcoming 76,000-meter Phase 3 drilling program at its flagship Kay Mine Project. The drilling will test numerous parallel targets heading west of the Kay Mine Deposit, as well as possible northern and southern extensions.
On January 17, 2023, Arizona Metals said that the step-out drilling located 300 meters north and on strike at the Kay Mine Deposit intersected a new zone of copper-gold VMS mineralization at depths between 150-600 meters vertically below surface. The new zone is open in all directions.
Drilling is already underway to test for extensions and widening of the mineralization.
Arizona Metals also released results for six holes drilled at Kay, comprised of three infill and three extension holes. The detailed report was highlighted by multiple intercepts.
Hole KM-22-93, part of the North Strike Extensions Drilling, cut four separate intervals of VMS mineralization at a depth of 470-610 meters, including 4.5 meters at a grade of 1.8% copper equivalent (CuEq); 2.0 meters grading 1.5% CuEq; 4.6 meters grading 0.8% CuEq; and 1.2 meters grading 2.7% CuEq.
This hole is about 300 meters below hole KM-22-30, which hit 3.0 meters grading 1.1% CuEq. It is also 400 meters below KM-22-33, which intersected 1.2 meters grading 4.2% CuEq, to extend the strike at the northernmost drill intercept at the deposit by about 300 meters.
Arizona Metals CEO Marc Pais said that the latest batch of drill results, “confirm our opinion that the Kay Mine Deposit is potentially part of a much larger mineralized system, typical of what is encountered in other VMS camps around the world.”
Mineralization remains open in all directions around these intercepts.
Hole KM-22-81B, part of Kay Mine Deposit Drilling program, intersected 3.8 meters grading 10.7% CuEq from 750 meters. This is a step-out hole to the south, which extended mineralization about 50 meters south of hole KM-21-52A along the southern edge of the Kay Mine Deposit.
Furthermore, the company has begun the first tests around the Central Target, which has produced encouraging results, evidenced by “numerous markers typically associated with VMS deposits.” Drilling will continue to provide a better understanding of the mineralization at the target.
Elsewhere at the project, road construction is well underway to reach drill locations that will test the Western Target, located 1,200 meters west of the Kay Mine Deposit. Drilling is targeted to begin this quarter.
According to Pais, “Work will continue at the Kay Mine Deposit to define an initial resource, in conjunction with associated hydrological, rock geochemistry, metallurgical, and specific gravity studies, but we anticipate that over the next 18 months approximately 90% of our budget will go towards exploration south, north, and west of the Kay Mine Deposit.”
(1) The historic estimate at the Kay Mine Deposit 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” (as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) 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.
(2) 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.
For more information, visit the company’s website at www.ArizonaMetalsCorp.com.
Full Disclosure: Arizona Metals Corp. is an InvestorBrandNetwork marketing client.
NOTE TO INVESTORS: The latest news and updates relating to AZMCF are available in the company’s newsroom at https://ibn.fm/AZMCF