Arizona Metals Corp.
(TSX.V:AMC, OTCQX:AZMCF) (the “Company” or “Arizona Metals”)
announces that metallurgical testing at its Sugarloaf Peak Project
demonstrates gold recoveries averaging 76%, from surface to
approximately 111 m, with oxidized zones reaching recoveries up to
95%. The Sugarloaf historic estimate of “100 million tons
containing 1.5 million ounces gold”* at a grade of 0.5 g/t
(Dausinger, 1983, Westworld Resources), was estimated to a depth of
only approximately 70 m.
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Figure 1. Sugarloaf Peak section looking
east, displaying metallurgical results of holes SP-20-01 and
SP-20-02 (Graphic: Business Wire)
Two of the drill holes completed in the 2020 Sugarloaf Phase 1
exploration program first underwent detailed hydrothermal
alteration analyses, and composite samples from these holes were
then submitted to Kappes Cassiday and Associates’ facilities in
Reno, Nevada for metallurgical testing. Table 1 below shows results
of recently completed bottle-roll testing on holes SP-20-01 and
SP-20-02. Column testing is currently underway on additional
samples from these holes, with results expected in Q4 2021.
Highlights of Sugarloaf Metallurgical Testing:
- Gold recoveries averaging 76%, with oxide recoveries reaching
95%
- Excellent gold recoveries in both oxide and sulphide
mineralization, to 111 m deep
- Gold recoveries not significantly impacted by sulphide content,
indicating not refractory
Drill hole SP-20-01 intersected 137 m of 0.53 g/t gold from
surface, including, 99 m of 0.62 g/t gold, and 30 m of 0.90 g/t
gold. Gold recoveries in this hole averaged 76%, from surface to a
down-hole depth of 137 m (vertical depth of 97 m). Recoveries
reached 95% in oxidized zones.
Drill hole SP-20-02 intersected 119.8 m of 0.34 g/t gold from
surface, including 21.6 m of 0.44 g/t gold, and 34.8 m of 0.41 g/t
gold. Gold recoveries in this hole also averaged 76%, from surface
to a down-hole depth of 119.8 m (vertical depth of 111 m).
Recoveries reached 94% in oxidized zones.
Marc Pais, CEO, commented “Today’s results have demonstrated the
potential for excellent gold recoveries, at depths well below the
historic resource estimate, which was defined down to only 70 m. We
note that gold recoveries average 76%, which compares very
favourably to similar heap-leach deposits currently in operation.
Importantly, we observe excellent recoveries in both oxide and
sulphide mineralization, indicating that the gold is not
refractory. We also note that our recent drilling has shown that
mineralization can continue well below the 111 m depth of this
metallurgical testing, with hole SP-20-01 intersecting 38.8 m of
0.32 g/t, from 127 m to 155 m, more than twice the historic
estimate depth. Based on the success of these initial tests, we
plan to undertake additional metallurgical testing on deeper
mineralization. Reagent consumption was also typical of rates
observed in producing mines. This initial metallurgical work
indicates excellent potential to recover both sulphide and oxide
material in deeper mineralization, with the deposit also remaining
open for expansion on strike to both the northwest and
southeast.”
Table 1. Sugarloaf Phase 1 Drill
Program Metallurgical Test Results
Hole From meters Tometers Length,meters Type Target p80Size, mm
CalculatedHead,gms Au/MT Extracted,gms Au/MT Au Extracted,% Leach
Time,hours ConsumptionNaCN,kg/MT AdditionCa(OH)2,kg/MT SP-20-01
0.0
12.8
12.8
Oxide
0.15
0.795
0.754
95%
96
0.35
4.03
SP-20-01
12.8
20.0
7.2
Sulfide
0.15
0.716
0.556
78%
96
0.56
4.00
SP-20-01
20.0
43.5
23.5
Sulfide
0.15
0.475
0.352
74%
96
0.41
1.50
SP-20-01
43.5
49.1
5.6
Sulfide
0.15
1.221
0.959
79%
96
0.17
1.00
SP-20-01
49.1
63.1
14.0
Sulfide
0.15
0.776
0.576
74%
96
0.10
1.01
SP-20-01
63.1
73.5
10.4
Sulfide
0.15
1.050
0.714
68%
96
0.28
0.50
SP-20-01
73.5
98.8
25.3
Sulfide
0.15
0.541
0.380
70%
96
0.22
0.50
SP-20-01
107.3
137.6
30.3
Sulfide
0.15
0.338
0.243
72%
96
0.25
0.75
SP-20-02
6.7
15.8
9.1
Oxide
0.15
0.430
0.403
94%
96
0.73
3.75
SP-20-02
29.4
51.1
21.7
Sulfide
0.15
0.443
0.293
66%
96
0.46
1.25
SP-20-02
65.5
79.2
13.7
Sulfide
0.15
0.355
0.216
61%
96
0.30
0.50
SP-20-02
85.0
119.8
34.8
Sulfide
0.15
0.337
0.274
81%
96
0.25
0.75
Average
0.62
0.48
76%
96
0.34
1.63
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
Analytical Method
Sugarloaf Peak metallurgical samples were subject to 96-hour
cyanide bottle roll tests. Samples were composited from ¼ PQ-size
(8.5-cm diameter) drill core in storage at the company’s facility
in Ehrenberg, Arizona, and shipped by commercial carrier to Kappes,
Cassiday, and Associates’ laboratory in Reno, Nevada. Samples were
prepared by crushing to 80% passing 0.15 mm. One kilogram of ground
sample was combined with 1.5 liters of sodium cyanide solution at a
target concentration of 1 gram cyanide per liter of water in
2.5-liter bottles, and rolled for the duration of the 96-hour
tests. Head and tail assays were performed by fire assay, and
solution analyses were done by atomic absorption spectrometry,
monitored at intervals of 2 to 24 hours. Kappes, Cassiday, and
Associates is independent of Arizona Metals Corp.
Kay Mine Project, Arizona Update
Drilling at the fully-funded 75,000m Kay Mine Phase 2 program is
underway with two drills turning and assays pending. The Company
will provide an update on the timing of the additions of a third
and fourth rig in a future release.
Engagement of Equity Guru Media Inc.
Arizona Metals is also pleased to announce that it has engaged
Equity Guru Media Inc. (the “Contractor”) to provide media
relations services pursuant to a contracting services agreement
(the “Services Agreement”). The Services Agreement is dated
effective May 31, 2021 and will be effective for a six-month term.
Services provided by the Contractor will relate to ongoing
communications and promotional support for the Company’s relations
with the professional investment community. Pursuant to the
Services Agreement, the Company will pay to the Contractor a fee of
$40,000 (plus applicable taxes) for a six-month term. The
Contractor is an arm's length party to the Company and, to the
Company’s knowledge does not currently own any securities of the
Company as at the date hereof but may purchase securities in the
Company from time to time for investment purposes. The Services
Agreement is subject to acceptance by the TSX Venture Exchange.
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.
Quality Assurance/Quality Control
All of Arizona Metals’ drill sample assay results have been
independently monitored through a quality assurance/quality control
(“QA/QC”) 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 Quartzite, Arizona. Drill core was diamond sawn on site
and half drill-core samples were securely transported to ALS
Laboratories’ (“ALS”) sample preparation facility in Tucson,
Arizona. 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 finish (ALS method Au-AA23). Silver and 47 other elements
were analyzed by ICP methods with four-acid digestion (ALS method
ME-MS61). ALS Laboratories is independent of Arizona Metals Corp.
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’ 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.
The qualified person who reviewed and approved the technical
disclosure in this release is David Smith, CPG, a qualified person
as defined in National Instrument 43-101–Standards of Disclosure
for Mineral Projects. Mr. Smith supervised the preparation of the
scientific and technical information that forms the basis for this
news release and has reviewed and approved the disclosure herein.
Mr. Smith is the Vice-President, Exploration of the Company. Mr.
Smith supervised the drill program and verified the data disclosed,
including sampling, analytical and QA/QC data, underlying the
technical information in this news release, including reviewing the
reports of ALS, methodologies, results, and all procedures
undertaken for quality assurance and quality control in a manner
consistent with industry practice, and all matters were consistent
and accurate according to his professional judgement. There were no
limitations on the verification process.
Disclaimer
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.
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THIS RELEASE
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in whole or in part, in or into the United States
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Marc Pais President and CEO Arizona Metals Corp. (416) 565-7689
mpais@arizonametalscorp.com www.arizonametalscorp.com
https://twitter.com/ArizonaCorp
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