Arizona Mining Inc. (TSX: AZ)(“Arizona Mining” or the “Company”) announces the results of three exploration holes from the current nine rig 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 indicating the potential for resource growth and increased grades from the Preliminary Economic Assessment (“PEA”) (see Press Release dated April 3, 2017).
“The drill results continue to significantly expand the Taylor Sulfide and Taylor Deeps Zones and show higher zinc-lead-silver grades. It is clear that the expanded drill program continues to not only add tons to the ultimate size of the deposit, but more importantly, they are higher grade tons that should benefit the economics of the project,” said Chief Operating Officer Don Taylor.
HDS-459 is a vertical hole located on the northwest corner of the Hardshell claim block, 150 feet east of the PEA resource outline (see Figure 2). The hole was drilled from the HDS-330 pad (original hole directed at the sulfide deposit) and targeted the Taylor Deeps Zone and extensions of the Taylor Sulfide Zone outside the resource grade shell used for the PEA. HDS-459 intersected robust sulfide intercepts in all three carbonate units in the Taylor Sulfide Zone and also in the Taylor Deeps Zone. The mineralization in this drill hole will extend both zones for the next resource calculation. Notable assays include:
- 36.5 feet assaying 10.2% zinc; 6.9% lead; and 3.1 ounces per ton (“opt”) silver (TS)
- 35 feet assaying 10.8% zinc; 13.3% lead; 21.0 opt silver; and 1.2% copper (TDS)
HDS-449 is a vertical hole located approximately 175 feet northwest of the Taylor sulfide PEA resource outline in the southeast portion of the Trench claim block (see Figure 1). 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 a 138-foot-thick interval of Taylor Sulfide mineralization. The mineralization in HDS-449 will expand both the Taylor Sulfide and Taylor Deeps Zones beyond the PEA resource. Significant assays from HDS-449 include:
- 138 feet assaying 7.4% zinc; 9.3% lead; and 3.3 opt silver (TS)
- Including 62 feet assaying 14.1% zinc; 18.4% lead; and 5.8 opt silver
HDS-448 is a vertical infill drill hole located within the PEA resource outline to infill a gap of approximately 400 feet in the drilling (see Figure 1). HDS-448 intersected five significant mineralized horizons in the Taylor Sulfide Zone with a cumulative thickness of 213 feet (for individual intervals see Table I). Most notable of the results from HDS-448 are:
- 25 feet assaying 6.7% zinc; 5.2% lead; and 1.6 opt silver (TS)
- 17.5 feet assaying 7.4% zinc; 7.1% lead; and 2.2 opt silver (TS)
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 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 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
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.