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TORONTO, Feb. 19,
2025 /CNW/ - Arizona Metals Corp. (TSX: AMC) (OTCQX:
AZMCF) (the "Company" or "Arizona Metals") is pleased to provide a
corporate update. The Company is fully funded and on track to
deliver a Mineral Resource Estimate ("MRE") in the first half of
2025 followed by a Preliminary Economic Assessment ("PEA") in the
second half of 2025, for its Kay Mine project (the "Kay Project")
located in Yavapai County,
Arizona. Ongoing resource and exploration drilling
throughout the year is planned with 17,000
m at the Kay Project and 5,000
m at the Company's Sugarloaf Peak Gold Project (the
"Sugarloaf Peak Project") in La Paz Country, Arizona. Since the beginning of the year,
2,600 m have been drilled at the Kay
and Kay2 Zones at the Kay Project.
Drilling
The Company currently has two drill rigs targeting an area below
the main Kay deposit and the Kay2 Zone, intended to probe the
vertical extents of both (Figure 1). These trunk holes will
also be used to wedge back into potential zones of mineralization
for both areas. Arizona Metals has drilled a total of 6,300 m in the Kay2 Zone, with 4,400 additional
meters planned for Kay2 and Kay during Q1 and Q2 of 2025 (Table 1).
The Company expects Kay2 Zone mineralization to contribute to the
upcoming MRE for the Kay deposit, which is on track for completion
in the first half of 2025. Arizona Metals has drilled a total of
127,000 meters on the property. Upon completion of the resource
drilling phase the company is planning to conduct a further 10,000
meters of exploration drilling at the Kay Project.
Table 1. Summary of Kay Project drilling progress.
|
Drilling to date and
2025 Program
|
Meters
|
|
Total meters drilled to
date
|
127,000
|
|
Meters drilled in Kay2
Zone
|
6,300
|
|
Additional meters
planned at Kay+Kay2 Q1-Q2
|
4,400
|
|
Meters planned for
exploration targets Q2-Q4
|
10,000
|
Permitting
The new federal administration in the
United States has introduced significant changes in
priorities for permitting of natural resource projects. In order to
fully benefit from these changes, the Company has decided to
retract its current Exploration Plan of Operations ("EXPO") and
resubmit the plan during the third quarter of 2025. The limiting
factor for resubmission of the EXPO are primarily the timing
required for certain biological survey protocols. The Company feels
that, among other changes, extending the biological and cultural
reviews in support of the EXPO will reduce risks associated with
the development of the project and more fully inform plans for mine
production permitting. By updating the EXPO, Arizona Metals
believes that it will save time during the permitting approval
process, the environmental review, and overall development of the
Kay Project. The company has also engaged WestLand Resources, a
proven permitting team, to better align the Company's permitting
objectives with these administrative changes .
The Company is currently conducting site activities under a
Notice of Intent ("NOI") which is limited to 5 acres of disturbance
on the property. Currently there are 14 drill pads and access roads
permitted. Once the Company finishes the resource drilling on the
Kay and Kay2 deposits in Q2, 2025, its focus will transition to the
exploration drilling on the Central and Western targets. The
Company plans to amend the current NOI to permit and build 6
additional drill pads and access roads which will allow for the
probing of these targets as planned (Figure 2). These drill pads
will be located to test multiple exploration targets including the
Kay North Extension (pads 11, 12 &16), North Central Target
(pads 13 & 14) and the North West target. (pad 15). The Company
has previously amended its current NOI seven times, and understands
the relatively straightforward nature of the amendment process and
does not anticipate any additional bonding costs. This planned
amendment will allow Arizona Metals to achieve its stated
exploration objectives while the Company proceeds towards EXPO
approval under the revised approval timelines.
Duncan Middlemiss, President and
CEO of Arizona Metals, comments: "With the new federal
administration, there is a renewed focus on resource extraction in
both oil and minerals. It is expected that process for managing
reviews, that was present during the current administration's first
term, will be put back in place and improved upon, which will
include goals and timelines for review and consultations. By
resubmitting our EXPO in the third quarter of 2025 the Company
expects an improved timeline for derisking the project, while still
being able to drill our North Extension, North Central and Western
targets in the second half of 2025.
Additionally, the Mineral Resource Estimate (MRE) is slated
for delivery by the end of H1. SGS Canada will be the primary consultants charged
with conducting the initial estimate, and G Mining Services will
provide a third-party independent MRE audit. This MRE will then
lead into the technical work to be conducted in support of the Kay
Mine PEA in H2 2025."
Sugarloaf Peak Gold Project
Arizona Metals second project is the
100% owned Sugarloaf
Peak Project, in La Paz County, which is located
on 4,400 acres of BLM claims. The Company is
currently planning an initial 5,000 meter reverse-circulation
drilling program at the Sugarloaf Peak Project to extend
mineralization both along strike and to depth and to verify
historic drilling. Past drilling has been relatively shallow
(averaging about 75-125 m) but
Arizona Metals' drilling and metallurgical testing indicated good
potential for processing of deeper sulfide mineralization; the
planned drilling intends in part to test the extent to sulfide
mineralization on the project. Under the current NOI there are 26
drill pads permitted. The Company expects to begin drilling early
in the second half of 2025.
The Sugarloaf Peak Project
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, N.E., 1983, Phase 1 Drill Program and Evaluation of
Gold-Silver Potential, Sugarloaf Peak Project, Quartzsite, Arizona: Report for Westworld
Inc.) 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.
About Arizona Metals Corp
Arizona Metals Corp owns 100% of the Kay Project in Yavapai County, which is located on 1669 acres
of patented and BLM mining claims and 193 acres of private land
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 Project was reported by Exxon Minerals in 1982.
(Fellows, M.L., 1982, Kay Mine massive sulphide deposit:
Internal report prepared for Exxon Minerals Company)
The Kay Project's 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 Project 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 Project, in
La Paz County, which is located on
4,400 acres of BLM claims. The Sugarloaf Peak Project 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, N.E., 1983, Phase 1 Drill Program and Evaluation of
Gold-Silver Potential, Sugarloaf Peak Project, Quartzsite, Arizona: Report for Westworld
Inc.)
The historic estimate at the Sugarloaf Peak Project 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.
Qualified Person and 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 Phoenix and
Black Canyon City, 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, and
Reno, Nevada, for analysis.
Gold content was determined by fire assay of a 30-gram charge
with ICP finish (ALS method Au-AA23). Silver and 32 other elements
were analyzed by ICP methods with four-acid digestion (ALS method
ME-ICP61a). Over-limit samples for Au, Ag, Cu, and Zn were
determined by ore-grade analyses Au-GRA21, Ag-OG62, Cu-OG62, and
Zn-OG62, respectively.
ALS Laboratories is independent of Arizona Metals Corp. and its
Vancouver and Reno facilities are 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
Instrument43-101 – 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 expansion potential of the Kay Project, statements
regarding drill results and future drilling of the Kay2 and Kay
during Q1 of 2025, statements regarding amendments under the
current NOI and permitting of additional drill pads and roads,
statements regarding the refiling of the EXPO, the completion of
ecological, biological and cultural studies, and the success and
speed of EXPO approval; statements regarding anticipated impacts of
the change in federal administration on mineral resource
exploration permitting; the contribution of the Kay2 Zone
mineralization to the mineral resource estimate for the Kay
deposit, and the mineral resource estimate being completed in H1
2025 and the PEA being completed in H2 2025; and statements
regarding drilling at the Sugarloaf Peak Project. 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 the
Company to stay well funded; 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.
THE TORONTO STOCK EXCHANGE HAS NEITHER REVIEWED NOR
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE
www.arizonametalscorp.com
https://x.com/ArizonaCorp
SOURCE Arizona Metals Corp.
