Arizona Mining Inc. (TSX: AZ)(“Arizona Mining” or the “Company”) announces the results of five exploration holes from the current drill program focused on expansion of the Taylor Sulfide Zone (“TS”) and Taylor Deeps Zone (“TDS”) located on its 100%-owned Hermosa Project in Santa Cruz County, Arizona. The drill holes highlighted in this release are successful step out exploration and infill drill holes highlighting the continued potential for resource growth and increased grades separate from the Preliminary Economic Assessment (“PEA”) (see Press Release dated April 3, 2017).
In addition to its expanded exploration program with 15 rigs targeting 328,000 feet (100,000 metres) of drilling in 2017 – compared to 6 rigs targeting 184,000 feet (56,000 metres) of drilling earlier this year – the Company has been focused in the past several months on various activities associated with its ongoing Feasibility Study. This work includes hydrology drilling that has demonstrated ample water availability, condemnation drilling for the proposed tailings storage facility on its private land, and additional drilling for metallurgical test work.
“The drill results continue to significantly expand and infill both the Taylor Sulfide and Taylor Deeps Zones and indicate overall higher zinc, lead and silver grades than the average grade of the PEA,” said Chief Operating Officer Don Taylor. “It is clear that our expanded drill program continues to not only add size to the ultimate deposit, but more importantly it is delineating higher grade material that should benefit the economics of the project. We continue to focus on the southeastern extension of the Taylor Deeps Zone where the mineralization has increased zinc, lead and silver grades and is also coming closer to the surface. This area has the potential to significantly improve the early development plan for the mine.”
HDS-478 is an angle drill hole (azimuth 80 degrees; -75 degrees inclination) located in the northeast corner of the Hardshell claim block (see Figures 1, 2 and 3). The drill hole successfully targeted the eastern extension of the mineralization encountered in previously reported drill hole HDS-435 (for results, see Press Release dated April 20, 2017). HDS-478 intersected two significant mineralized horizons in the Taylor Sulfide Zone with a cumulative thickness of 25 feet (for individual intervals see Table I). Notably, drilling also intersected a significant thickness of high grade zinc-lead-silver mineralization in the Taylor Deeps Zone further east than any previous drilling in this area. The results of HDS-478 extend the Taylor Deeps mineralization approximately 220 feet east of that intersected in HDS-435 and approximately 1,800 feet east of the PEA resource outline. Most notable of the results from HDS-478 are:
- 5 feet assaying 23.0% zinc; 16.9% lead; and 30.0 ounces per ton (“opt”) silver (TS)
- 20 feet assaying 15.6% zinc; 11.3% lead; and 15.9 opt silver (TS)
- 25 feet assaying 13.1% zinc; 6.9% lead; and 5.3 opt silver (TDS)
HDS-473 is a vertical infill hole located on the Trench claim block, 800 feet west of the PEA resource outline (see Figures 1, 2 and 3). The hole targeted the Taylor Deeps Zone between previously released drill holes HDS-436 and HDS-453. HDS-473 intersected several veins in the overlying volcanics and two mineralized horizons in the Taylor Deeps Zone. The upper mineralized horizon in the Taylor Deeps Zone was comprised of a 19.5-foot-thick interval assaying 24.6% combined zinc-lead and 21.7 opt silver. Notable assays include:
- 19.5 feet assaying 2.4% zinc; 22.2% lead; and 21.7 opt silver (TDS)
HDS-472 is a near vertical infill hole located on the north central portion of the Hardshell claim block, 700 feet east of the PEA resource outline (see Figures 1, 2 and 3). The hole successfully targeted the Taylor Deeps Zone and the extension of the Taylor Sulfide Zone outside the resource grade shell used for the PEA. HDS-472 intersected lower grade but continuous zinc-lead-silver sulfide intercepts in all three carbonate units in the Taylor Sulfide Zone. In the Taylor Deeps Zone, HDS-472 intersected a 36-foot-thick interval assaying 11.3% combined zinc-lead and 2.0 opt silver. Notable assays include:
- 78 feet assaying 2.4% zinc; 2.3% lead; and 1.2 opt silver (TS)
- 36 feet assaying 6.7% zinc; 4.6% lead; 2.0 opt silver; and 0.57% copper (TDS)
HDS-471 is a vertical hole located on the northern boundary of the Hardshell claim block approximately 550 feet east of the Taylor Deeps PEA resource outline (see Figures 1, 2 and 3). The drill hole targeted the extension of the Taylor Sulfide Zone and infilling of the Taylor Deeps Zone between the resource outline and previously released drill hole HDS-453 (for results see Press Release dated July 13, 2017). The drill hole intersected an 11-foot-thick interval of low grade zinc-lead-silver in the Taylor Sulfide mineralization and a 58-foot interval assaying 11.1% zinc-lead and 2.4 opt silver in the Taylor Deeps Zone. Significant assays from HDS-471 include:
- 58 feet assaying 4.4% zinc; 6.7% lead; and 2.4 opt silver (TDS)
HDS-464 is a vertical drill hole located on the eastern extent of the Hardshell claim block (see Figures 1 and 2). The drill hole targeted the southern extension of the mineralization encountered in previously reported drill hole HDS-435. HDS-464 intersected a 19-foot interval in the Taylor Deeps Zone which extends the mineralization approximately 450 feet south of that intersected in HDS-435 and approximately 1,350 feet east/southeast of the PEA resource outline. Most notable of the results from HDS-464 are:
- 19 feet assaying 5.3% zinc; 2.5% lead; and 2.8 opt silver (TDS)
For a full list of the Trench Vein, Taylor Sulfide and Taylor Deeps Sulfide mineralized intervals from these holes please refer to Table I.
Table I. Drill Hole Assay Summary
Drill intersections with a combined zinc and lead grade of greater than 9% are highlighted. Sulfide drill intervals from the Taylor Sulfide Zone and Taylor Deeps Sulfide Zone are down-the-hole drill intervals. Vertical drill holes are considered to be within +5% of true width based on the dip of the mineralized stratigraphy at 20-25 degrees. Angle drill holes are considered to be within +10% of true width based on the dip of the mineralized stratigraphy at 20-25 degrees. The exception to this are the intervals noted as veins. It is not possible to determine the true width of the veins based on the drill density and no representation is made here regarding true width of the veins. Zones shown include; Taylor Sulfide Zone (TS); Taylor Deeps Sulfide Zone (TDS) and Trench Vein System (TVS).
Figure 1. Drill Hole Location Map
Figure 2. Plan View of Taylor Deeps with ZnEq Grade Contour
Figure 3. Long Section of Hermosa Geology and Ore Deposits
The results of the Arizona Mining Inc. drilling have been reviewed, verified and compiled by Donald R. Taylor, MSc., PG, Chief Operating Officer for Arizona Mining Inc., a qualified person as defined by National Instrument 43-101 (NI 43-101). Mr. Taylor has 30 years of mineral exploration and mining experience, and is a Registered Professional Geologist through the SME (registered member #4029597).
Assays and Quality Assurance/Quality Control
To ensure reliable sample results, the Company has a rigorous QA/QC program in place that monitors the chain-of-custody of samples and includes the insertion of blanks, duplicates, and certified reference standards at statistically derived intervals within each batch of samples. Core is photographed and split in half with one-half retained in a secured facility for verification purposes.
Sample preparation (crushing and pulverizing) has been performed at ALS Minerals Laboratories, an ISO/IEC accredited lab located in Tucson, Arizona. ALS Minerals Laboratories prepares a pulp of all samples and sends the pulps to their analytical laboratory in Vancouver, B.C. Canada for analysis. ALS analyzes the pulp sample by ICP following a 4-acid digestion (ME-ICP61 for 33 elements) including Cu (copper), Pb (lead), and Zn (zinc). All samples in which Cu (copper), Pb (lead), or Zn (zinc) are greater than 10,000 ppm are re-run using four acid digestion with an ICP – AES finish (Cu-OG62; Pb-OG62; and Zn-OG62) with the elements reported in percentage (%). Silver values are determined by ICP (ME-ICP61) with all samples with silver values greater than 100 ppm repeated using four acid digestion with an ICP-AES finish (Ag-OG62) calibrated for higher levels of silver contained. Any values over 1,500 ppm Ag trigger a fire assay with gravimetric finish analysis. Gold values are determined by a 30 gm fire assay with an ICP-AES finish (Au-ICP21).
About Arizona Mining
Arizona Mining Inc. (an augustagroup company) is a mineral exploration and development company focused on the exploration and development of its 100%-owned Hermosa Project located in Santa Cruz County, Arizona. The Taylor Deposit, a zinc-lead-silver carbonate replacement deposit, has a resource of 8.6 million tons in the Measured Mineral Resource category grading 4.2% zinc, 4.0% lead and 1.6 opt silver, or 9.7% ZnEq, plus 63.8 million tons in the Indicated Mineral Resource category grading 4.5% zinc, 4.4% lead and 1.9 opt silver, or 10.6% ZnEq, and 38.6 million tons of Inferred Mineral Resources grading 4.4% zinc, 4.2% lead and 3.1 opt silver or 11.6% ZnEq, all reported in accordance with NI 43-101 guidelines utilizing a 4% ZnEq cutoff grade. The Taylor Deposit remains open to the north, west and south over land controlled by the Company and will be aggressively drilled to test the limits of the resource. The Company’s other project on the Hermosa property is the Central Deposit, a silver-manganese manto oxide project.
For additional information please contact:
Vice-President, Investor Relations & Corporate Communications
Telephone: 416-366-5678 ext. 202
Email: [email protected]
Cautionary Note Regarding Forward-Looking Information
Certain information contained in this press release constitutes forward-looking statements. All statements, other than statements of historical facts, are forward looking statements including statements with respect to the Company’s intentions for its Hermosa Project in Arizona, including, without limitation, performing additional drilling, a resource update, permitting and a feasibility study on the Taylor Deposit. Forward-looking statements are often, but not always, identified by the use of words such as may, will, seek, anticipate, believe, plan, estimate, budget, schedule, forecast, project, expect, intend, or similar expressions.
The forward-looking statements are based on a number of assumptions which, while considered reasonable by Arizona Mining, are subject to risks and uncertainties. In addition to the assumptions herein, these assumptions include the assumptions described in Arizona Mining’s management’s discussion and analysis for the year ended December 31, 2016 (“MD&A”). Arizona Mining cautions readers that forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements and forward-looking statements are not guarantees of future results, performance or achievement. These risks, uncertainties and factors include general business, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and production costs; future prices of zinc, lead, silver and other minerals; variations of mineral grade or recovery rates; operating or technical difficulties in connection with exploration, development or mining activities, including the failure of plant, equipment or processes to operate as anticipated; delays in completion of exploration, development or construction activities; changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain required licenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the exploration, development and mining business; and the factors discussed in the section entitled “Risks and Uncertainties” in the MD&A.
Although Arizona Mining has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Arizona Mining disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.