Arizona Mining Reports 1,700 Ft Stepout From Current Resource
December 21, 2016
INTERSECTS 17 FEET GRADING 22.0% ZINC, 14.8% LEAD AND 3.8 OPT SILVER WITHIN BROADER 32 FOOT THICK MINERALIZED ZONE
Vancouver, B.C., December 21, 2016 - Arizona Mining Inc. (TSX: AZ) (“Arizona Mining” or the “Company”) is pleased to announce the results of four (4) exploration drill holes from its current program on the Taylor zinc-lead-silver 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 forty-one (41).
HDS-353 is a significant step out hole drilled approximately 1,700 feet southwest of the boundary of the previously reported resource (see news release dated October 31, 2016). The drill hole intersected three distinct carbonate replacement deposit (“CRD”) hosted stratabound mineralized horizons and one high grade zinc-lead-silver vein. The CRD and vein mineralization occurs in the middle member of the Scherrer Formation (a significant ore host at Taylor). Three well mineralized CRD zones were intersected in the drill hole including a 32-foot thick interval assaying 12.2% zinc, 8.2% lead and 2.3 ounces per ton (“opt“) silver. Included in the zone was a higher-grade, 17-foot thick interval grading 22.0% zinc, 14.8% lead and 3.8 opt silver.
HDS-387 is a vertical hole drilled to infill an untested area on the northeast margin of the previously reported resource area. The drill hole was successful and clearly indicates continuity of the mineralization in the northeast area of the resource. HDS-387 intersected seven (7) distinct mineralized CRD horizons with a total cumulative mineralized thickness of 276.5 feet. Several mineralized zones were intersected in the drill hole including a 41.5-foot thick interval assaying 11.1% zinc, 21.8% lead and 7.5 opt silver, which occurred within a larger interval 112.5 feet thick which assayed 5.4% zinc, 9.6% lead and 3.2 opt silver.
HDS-382 is a low angle (-60 degrees) core hole drilled to infill the resource to the southwest. The drill hole intersected eight (8) mineralized zones totaling 251 feet of mineralization and infilled a gap in drill coverage. The most significant interval from the drill hole was an 87-foot thick zone high in the carbonate sequence which assayed 9.6% zinc, 10.5% lead and 4.7 opt silver. Deeper down the hole, the drilling intersected a 10-foot thick interval within a broader zone of mineralization 29 feet thick, which assayed 3.3% zinc, 7.4% lead and 2.3 opt silver.
HDS-386 was drilled to test an area along the northeast boundary of the patented claim block. The drill hole intersected four (4) significant zinc/lead/silver veins in the volcanics and two (2) CRD intervals in the carbonates. The CRD intersections indicate continuity of the mineralization in the area of the drill hole extending northwest from HDS-354. One of the veins intersected in the volcanics assayed 4.8% zinc, 26.8% lead and 26.5 opt silver over 2.5 feet, however the true thickness of the vein is believed to be less than 1.5 feet. The most significant CRD interval in the drill hole was a 51-foot thick intercept assaying 0.6% zinc, 3.0% lead and 3.9 opt silver.
Arizona Mining CEO Jim Gowans commented, “As we prepare for the preliminary economic assessment, which is planned for the end of Q1 2017, the drilling continues to deliver excellent results for both the infill and expansion of the Taylor deposit. The drill results and advanced metallurgical program currently underway will underpin the study.”
Table I. ASSAY SUMMARIES FOR HDS-353, HDS-382, HDS-386 AND HDS-387
|DH_ID||From (feet)||To (feet)||Interval (in feet)||From (meters)||To (meters)||Interval (meters)||Ag opt||Pb%||Zn%||Cu%||Ore Zone|
Drill intersections with a combined zinc and lead grade of greater than 9% are highlighted. Drill intervals are down the hole drill width but are considered to be within 5% of true width, excepting noted veins. It is not possible to determine the true width of the veins and no representation is made here regarding true width of the veins.
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 zinc-lead-silver carbonate replacement deposit, has a resource of 31.1 million tons in the Indicated Mineral Resource category grading 10.9% zinc equivalent (“ZnEq”) and 82.7 million tons in the Inferred Mineral Resource category grading 11.1% ZnEq, both utilizing a 4% ZnEq cutoff grade calculated in accordance with NI 43-101 guidelines (refer to the Company’s news release dated October 31, 2016). 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 and metallurgical testwork 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.