SOURCE: Arizona Mining Inc.

October 24, 2016 06:30 ET

New Taylor Resource Expected Within the Week

HDS-377 Intersects Twelve (12) Mineralized Zones With Cumulative Thickness of 412 Feet Including a 26 Foot Interval Assaying 14.2% Zinc, 13.8% Lead, 19.2 opt Silver

VANCOUVER, BC--(Marketwired - October 24, 2016) - Arizona Mining Inc. (TSX: AZ) ("Arizona Mining" or the "Company") is pleased to announce the results of three (3) exploration drill holes from its current program on the Taylor Zn-Pb-Ag sulfide deposit located on its 100%-owned Hermosa Project in Santa Cruz County, Arizona. This brings the total number of drill holes reported in the 2016 program to thirty-four (34).

HDS-377 is a steep angle (-87 degrees) core hole drilled to infill and deepen prior mineralization intersected in HDS-102 which stopped short of the favored Epitaph host. The drill hole intersected twelve (12) mineralized zones with a cumulative thickness of 412 feet (all intervals are interpreted to be within 5% of true width). The results from this hole, drilled to a depth of about 3,400 feet, indicate the mineralization continues below the levels tested by HDS-102, HDS-145 and HDS-129. Several well mineralized zones were intersected in the drill hole, including a 30.5 foot thick zone high in the carbonate sequence which assayed 14.8% zinc, 7.2% lead and 3.2 ounces per ton ("opt") silver. Deeper down the hole, the drilling intersected a 26 foot thick zone which assayed 14.2% zinc, 13.8% lead and 19.2 opt silver.

HDS-376 is a significant step out angle drill hole (-82.5 degrees) drilled northwest of the boundary of the previously reported resource area. The drill hole results indicate that good continuity exists between the original resource area and step out drill holes located further north and northwest. HDS-376 intersected four (4) distinct mineralized horizons with a total cumulative mineralized thickness of 109 feet. Several well mineralized zones were intersected in the drill hole including a 14 foot thick interval assaying 7.9% zinc, 11.5% lead and 4.1 opt silver within a broader 46.5 foot thick zone of mineralization.

HDS-375 is an important angled (-82.5 degrees) step out hole drilled to test an area northeast of the previously reported resource area. The drill hole results have extended the mineralization to the northeast from the original resource area. HDS-375 intersected six (6) distinct mineralized horizons with a total cumulative mineralized thickness of 237.5 feet. Several well mineralized zones were intersected in the drill hole including a 14.5 foot thick interval assaying 18.6% zinc, 12.5% lead and 4.1 opt silver. A second interval of note in HDS-375 is a 45 foot thick zone which assayed 5.3% zinc, 7.7% lead and 3.1 opt silver.

Arizona Mining CEO Jim Gowans commented, "With the continued success of our expanded drill program, we are moving forward our timelines and will now endeavour to deliver an updated resource for the Taylor deposit within the week versus our original timeframe of Q1 2017. As a consequence, and also in view of the progress to date with technical and engineering work on the Taylor Project, we will review and update the expected timeline for completion of a preliminary economic assessment."

                    Table I. ASSAY SUMMARIES FOR HDS-375, HDS-376 AND HDS-377
DH_ID  From (feet)  To (feet)  Interval (in feet)  From (meters)  To (meters)  Interval (meters)  Ag opt  Pb%  Zn%  Cu%
HDS-375  755  790  35  230.1  240.8  10.7  5.93  4.34  9.92  0.13
HDS-375  1785  1795.5  10.5  544.0  547.2  3.2  5.80  11.46  1.25  0.06
HDS-375  2310  2350  40  704.1  716.2  12.2  2.01  5.99  8.72  0.16
Including  2310  2324.5  14.5  704.1  708.5  4.4  4.14  12.50  18.56  0.38
HDS-375  2476  2525  49  754.6  769.6  14.9  1.15  3.03  1.26  0.02
HDS-375  2546  2604  58  776.0  793.7  17.7  1.13  2.69  3.34  0.05
HDS-375  3592  3637  45  1094.8  1108.5  13.7  3.05  7.68  5.26  0.31
HDS-376  2495  2540  45  760.4  774.2  13.7  2.19  1.92  4.39  0.11
Including  2495  2502  7  760.4  762.6  2.1  11.15  9.79  24.37  0.63
HDS-376  2560  2572  12  780.2  783.9  3.7  3.83  5.02  2.54  0.16
HDS-376  3368  3373.5  5.5  1026.5  1028.2  1.7  14.55  10.15  3.82  0.30
HDS-376  3478.5  3525  46.5  1060.2  1074.4  14.2  1.83  5.28  3.81  0.43
Including  3478.5  3492.5  14  1060.2  1064.5  4.3  4.13  11.47  7.87  1.23
HDS-377  886  942  56  270.0  287.1  17.1  0.54  1.06  2.10  0.01
HDS-377  1372  1397  25  418.2  425.8  7.6  1.98  3.83  5.99  0.12
HDS-377  1896.5  1927  30.5  578.0  587.3  9.3  3.15  7.18  14.84  0.19
Including  1896.5  1909  12.5  578.0  581.8  3.8  4.71  9.52  22.46  0.39
HDS-377  1962  1975  13  598.0  602.0  4.0  2.43  7.83  8.91  0.16
HDS-377  2009  2046  37  612.3  623.6  11.3  1.19  3.91  3.40  0.03
HDS-377  2510  2514.5  4.5  765.0  766.4  1.4  1.72  4.67  7.42  0.08
HDS-377  2597  2634  37  791.5  802.8  11.3  0.90  2.69  2.98  0.02
HDS-377  2762  2901.5  139.5  841.8  884.3  42.5  0.71  2.09  2.17  0.01
Including  2847  2876  29  867.7  876.6  8.8  1.22  3.73  4.89  0.02
HDS-377  3000  3029.5  29.5  914.4  923.3  9.0  0.68  2.01  0.55  0.00
HDS-377  3191.5  3196  4.5  972.7  974.1  1.4  17.53  3.22  3.87  0.78
HDS-377  3289  3315  26  1002.4  1010.4  7.9  19.16  13.77  14.15  0.59
HDS-377  3372  3381.5  9.5  1027.7  1030.6  2.9  1.63  6.16  4.97  0.11
(Drill intersections with a combined zinc and lead grade of greater than 9% are bolded. Drill intervals are down the hole drill width but are considered to be within 5% of true width).

Qualified Person

The results of the Arizona Mining Inc. drilling results 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. 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 lead-zinc-silver carbonate replacement deposit, has a resource of 39.4 million tonnes in the Inferred Mineral Resource category grading 11% zinc equivalent ("ZnEq") utilizing a 6% ZnEq cutoff grade calculated in accordance with CIM definitions for mineral resources. 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 recently completed metallurgical test work on drill core from the Taylor Deposit that projects overall recoveries of 92.9% Pb; 85.5% Zn and 91% Ag using industry standard froth flotation processing technology. The Company's other project on the Hermosa property is the Central Deposit, a silver-manganese manto oxide development project that has a prefeasibility study which was released in December 2013.

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, USA including, without limitation, performing additional drilling 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, 2015 ("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
    Investor Relations & Corporate Communications
    Telephone: 416-505-7606

    Donald Taylor
    Chief Operating Officer
    Telephone: 520-485-1300