Arizona Mining (TSX:AZ) announces the results of five exploration holes from the current drill program targeting the expansion of the Taylor Deeps Zone and definition of the Trench Vein System located on its 100%-owned Hermosa Project in Santa Cruz County, Arizona. Three of the five holes were step out exploration holes targeting expansion of the Taylor Deeps zinc-lead-silver sulfide zone. The fifth drill hole (HDS-438) was an angle drill hole targeting the Trench Vein System, a series of steeply dipping veins which extend across the property in a northeast/southwest direction.
This latest set of drill results continues to expand the Taylor Deeps Zone and also highlights the robust nature of the Trench Vein System. In addition to excellent zinc and lead grades, assay results show increased silver and copper values in these two zones compared to the Taylor Sulfide Zone. Based on the results to date, the Company believes there is significant potential to increase the size of the overall resource, positively impact the mine plan in the early years, and further improve the project’s economics from the numbers included in the recently released preliminary economic assessment, which estimate a US$1.26 billion after-tax net present value, 42% after-tax internal rate of return and 1.7-year payback (see April 3, 2017 press release and April 13, 2017 technical report filed on SEDAR). In light of this, management has decided to:
- Increase the number of drill rigs to nine from the current six and increase the budget to enable the continued resource expansion of both the Taylor Deeps Zone and Trench Vein System;
- Delay the Feasibility Study until H1 2018, or as dictated by drill results, to allow for the current drill program to be incorporated into an updated resource estimate for the Feasibility Study;
- Continue permitting activities to maintain production timelines and schedules;
- Continue all other planned activities including hydrologic assessment and modeling, environmental background studies, and metallurgical and geotechnical test work.
COO Don Taylor commented: “The current drill results, coupled with prior results, clearly indicate the enormous size potential for the Taylor Deeps Zone. The assay results from Deeps continue to indicate substantially higher silver and copper grades compared to the Taylor Sulfide Zone. Additionally, HDS-438 is the first drill hole specifically targeting the Trench Vein System and has returned some very encouraging intercepts. Similar to the Deeps assays, the results for the veins indicate significantly higher silver and copper grades as compared to the Taylor Sulfide Zone. The drilling success in both Taylor Deeps and the Trench Vein System warrant delaying our Feasibility Study, as both zones could have a significant beneficial impact on our development plan.”
HDS-437 is an inclined hole (-82 degrees) drilled to extend an area of the previously reported Taylor Deeps mineral resource. The drill hole encountered four intervals of Taylor Sulfide mineralization, a sulfide vein and a very significant mineralized horizon in the Taylor Deeps Sulfide Zone. Most notable among the mineralized horizons are:
- 34 feet assaying 14.8% zinc; 13.2% lead; and 4.3 ounces per ton (“opt”) silver (Taylor Sulfide Zone – “TS”)
- 122 feet assaying 6.4% zinc; 6.5% lead; and 10.7 opt silver (Taylor Deeps Zone – “TDS”)
- Including a 27 foot zone which assayed 19.8% zinc; 13.3% lead; and 41.2 opt silver
HDS-436 is a vertical drill hole located approximately 1,200 feet west of the Taylor Deeps resource outline (see Figure 1 and Figure 2). HDS-436 intersected four veins in the volcanics and very robust mineralized sulfide intervals in the Taylor Deeps Zone. The mineralization in HDS-436 included:
- 29 feet assaying 4.9% zinc; 7.4% lead; and 6.3 opt silver (TDS)
- Including a 8.5 foot zone which assayed 13.2% zinc; 22.9% lead; and 20.3 opt silver
- 100.5 feet assaying 1.7% zinc; 2.5% lead; and 2.9 opt silver (TDS)
- Including a 12.5 foot zone which assayed 9.9% zinc; 12.3% lead; and 6.6 opt silver
HDS-438 is an inclined hole (-75 degrees) drilled to test the Trench Vein System. The veins dip approximately 65 degrees in a northeast direction. HDS-438 encountered seven distinct veins with the first vein intersected 967 feet down the drill hole. True widths of the veins are difficult to determine based on the current drill information therefore no inference is made in that regard. All mineralized intervals are down-the-hole intercepts. Most notable among the mineralized vein results are:
- 54.5 feet assaying 5.4% zinc; 1.8% lead; and 1.4 opt silver (Trench Vein System – “Vein”)
- Including a 24 foot zone which assayed 11.7% zinc; 3.7% lead; and 2.2 opt silver
- 6 feet assaying 5.3% zinc; 28.1% lead; and 18.5 opt silver (Vein)
- 86 feet assaying 14.5% zinc; 8.7% lead; and 7.2 opt silver (Vein)
HDS-434 is an inclined infill hole (-82 degrees) drilled to test the Taylor Deeps Zone. The drill hole intersected three veins at various levels, a single interval of Taylor Sulfide and a very robust interval in the Taylor Deeps Zone. Most notable among the results are:
- 141 feet assaying 4.0% zinc; 6.4% lead; and 2.2 opt silver (TDS)
- Including a 37 foot zone which assayed 11.4% zinc; 20.0% lead; and 6.8 opt silver
For a full list of the Trench Vein, Taylor Sulfide and Taylor Deeps Sulfide mineralized intervals from these holes and HDS-429 please refer to Table I below.
Drill intersections with a combined zinc and lead grade of greater than 9% are highlighted. Sulfide drill intervals are down-the-hole drill widths but are considered to be within +5% 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 Mineralized Sulfide Veins (Veins).
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 more than 25 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 rerun 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 Canadian 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.
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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.