SOURCE: Arizona Mining Inc.

Arizona Mining Inc.

June 20, 2017 06:30 ET

Arizona Mining Reports Significant Step-Out Holes Targeting the Up-Dip Extent of Taylor Deeps Zone; Results Include 67 Foot Interval Assaying 20.5% Zinc, 18.1% Lead and 7.5 opt Silver and 43 Foot Interval Assaying 11.4% Zinc, 18.6% Lead and 12.3 opt Silver

VANCOUVER, BC--(Marketwired - June 20, 2017) - Arizona Mining Inc. (TSX: AZ) ("Arizona Mining" or the "Company") announces the results of seven 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. The drill holes highlighted in this release are step-out exploration holes targeting expansion of the Taylor Deeps zinc-lead-silver sulfide zone and the Trench Vein System, a series of steeply dipping veins which extend across the property in a northeast/southwest direction.

The results from HDS-446 and HDS-447, coupled with the results from HDS-435 (1500 foot step-out hole -- see Press Release dated April 20, 2017), indicate this up-dip area of the Taylor Deeps Zone will have a significant impact on the overall grade of the zone and mine plan for the deposit. The latest drill results continue to indicate the size potential and robust grade of the expanded Taylor Deeps Zone as it continues to grow to the southeast. In addition to expanding the Taylor Deeps Zone, HDS-446 and HDS-447 were successful in expanding the Epitaph-hosted mineralization approximately 1,000 feet to the southeast from the previously modelled resource (see Figure 3).

Drill holes targeting the Trench Vein System have encountered mixed results. As expected, the vein swarms pinch and swell along strike, however the drilling has encountered some significant mineralization, especially with respect to silver.

COO Don Taylor commented: "The drill results from HDS-446 and HDS-447, coupled with those from HDS-435, clearly indicate the enormous size potential for the Taylor Deeps Zone. In addition to the size potential of the Deeps, the silver grades intersected to date are 3 to 4 times higher than the average for the deposit. We continue to add drill resources to this area to accelerate its definition as the results could have a very significant impact on our mine plan in the early years of development."

HDS-446 is a vertical drill hole targeting the extension of the previously reported Taylor Deeps mineral resource and the recently reported intercepts reported from HDS-435. The drill hole encountered a thin interval of Taylor Sulfide mineralization and a very significant mineralized horizon in the Taylor Deeps Sulfide Zone. Most notable among the mineralized horizons is:

  • 67 feet assaying 20.5% zinc; 18.1% lead; and 7.5 ounces per ton ("opt") silver (Taylor Deeps Zone - "TDS")

HDS-447 is a vertical drill hole located between HDS-446 and HDS-435 (see Figure 2 and Figure 3). HDS-447 intersected three veins; two Taylor Sulfide intervals and a very robust mineralized sulfide interval in the Taylor Deeps Zone. The mineralization in HDS-447 included:

  • 149 feet assaying 4.7% zinc; 6.2% lead; and 4.3 opt silver (TDS)
    -
    Including a 43 foot zone which assayed 11.4% zinc; 18.6% lead; and 12.3 opt silver
  • 61 feet assaying 2.4% zinc; 1.8% lead; and 2.0 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. ASSAY SUMMARIES FOR HDS-410, HDS-412, HDS-420, HDS-444, HDS-446, HDS-447 & HDS-451
                      
DH_ID From (feet) To
(feet)
 Interval
(in feet)
 From
(meters)
 To
(meters)
Interval
(meters)
 Ag opt Pb% Zn% Cu% Zone
HDS-410 3301 3317 16 1006.1 1011.04.9 27.82 6.25 0.75 1.55 TVS
HDS-410 4244 4253.5 9.5 1293.5 1296.42.9 1.29 2.32 1.03 0.59 TVS
                      
HDS-412 671 683 12 204.5 208.23.7 2.88 1.38 2.38 0.09 TVS
HDS-412 722.5 746.5 24 220.2 227.57.3 2.61 3.10 5.42 0.02 TVS
HDS-412 824 829 5 251.1 252.71.5 6.15 1.65 5.56 0.23 TVS
HDS-412 929 950 21 283.1 289.56.4 6.06 1.67 3.89 0.37 TVS
HDS-412 3504 3511 7 1068.0 1070.12.1 8.69 2.59 0.07 0.04 TVS
                      
HDS-420 1157 1167 10 352.6 355.73.0 1.10 0.92 2.14 0.13 TVS
HDS-420 1472 1526.5 54.5 448.6 465.316.6 1.91 0.91 2.03 0.10 TVS
HDS-420 2276.5 2291.5 15 693.8 698.44.6 1.40 2.49 3.12 0.40 TS
HDS-420 2911.5 2931 19.5 887.4 893.35.9 0.91 2.42 4.11 0.01 TS
                      
HDS-444 612 622 10 186.6 189.63.0 1.82 0.69 1.95 0.07 TVS
HDS-444 772 780 8 235.4 237.82.4 1.18 2.29 2.92 0.07 TVS
HDS-444 1202 1217 15 366.5 371.04.6 2.04 0.57 0.70 0.09 TVS
HDS-444 2267 2351 84 691.2 716.825.6 0.44 0.65 1.42 0.04 TVS
HDS-444 2592 2602 10 790.2 793.33.0 7.98 1.23 2.53 0.55 TVS
HDS-444 2635 2656 21 803.4 809.86.4 2.00 2.05 1.53 0.18 TVS
                      
HDS-446 2393 2455 62 729.4 748.218.9 1.58 2.05 2.89 0.26 TS
HDS-446 2656 2661 5 809.5 811.01.5 4.35 11.10 10.45 0.10 TS
HDS-446 2701 2768 67 823.2 843.620.4 7.48 18.09 20.46 1.25 TDS
                      
HDS-447 470 485 15 143.2 147.84.6 2.13 1.54 0.07 0.08 TVS
HDS-447 520 545 25 158.5 166.17.6 2.83 0.16 0.02 0.01 TVS
HDS-447 2152 2213 61 655.9 674.518.6 1.97 1.80 2.35 0.10 TS
HDS-447 2237 2247 10 681.8 684.93.0 3.54 6.14 3.12 0.07 TS
HDS-447 2307 2456 149 703.1 748.645.4 4.29 6.21 4.66 0.11 TDS
Including 2307 2350 43 703.1 716.213.1 12.33 18.59 11.42 0.33 TDS
HDS-447 2683 2688 5 817.7 819.31.5 14.00 5.44 13.35 1.29 TVS
                      
HDS-451 456 460 4 139.0 140.21.2 9.28 1.32 2.82 0.04 TVS
HDS-451 889.5 893.5 4 271.1 272.31.2 1.90 1.23 4.61 0.02 TVS
HDS-451 1135 1192 57 345.9 363.317.4 0.34 0.47 1.18 0.00 TVS
Drill intersections with a combined zinc and lead grade of greater than 9% are bolded. 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).

Qualified Person

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. A preliminary economic assessment was completed in April, 2017 which showed a 42% IRR, a US$1.26 billion NPV8% and a 1.7 year payback based on long term metal price assumptions of $1.10/lb zinc, $1.00/lb lead and $20/oz silver. 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.

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.

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Contact Information

  • For additional information please contact:
    Susan Muir
    Vice-President, Investor Relations & Corporate Communications
    Telephone: 416-366-5678 ext. 202
    Email: smuir@arizonamining.com