Arizona Metals (TSX:AMC) has announced new discoveries of copper-gold-zinc VMS mineralization in its Kay Mine Deposit in Arizona. The company’s step-out exploration drilling has intersected a potential new zone of mineralization located 600 m north and along strike of the Central Target EM anomaly. Hole KM-22-95 intersected 2.7 m grading 0.5% CuEq at a vertical depth of approximately 320 m. The discovery of clasts of massive sulphide mineralization in this interval is a positive indication of proximity to primary massive sulphide mineralization. Follow up drilling is planned to test for extensions of the mineralization encountered in this hole.

The company has also reported that extensional drilling at the northern edge of the Kay Mine Deposit has extended mineralization by 100 m north of hole KM-22-71A. Hole KM-23-97 intersected 8.8 m of 4.8% CuEq and confirmed the vertical continuity of high-grade mineralization in the 160 m between holes KM-20-11 and KM-21-19.

Arizona Metals has reported the results of six additional holes from the Kay Mine Deposit, including both infill and extensional holes.

The company commenced drilling at the Western Target in February 2023, with the first hole, KM-23-104, currently underway. The hole has been drilled to approximately 650 m west of pad W1 and to a vertical depth of 700 m below surface. After completion, a downhole electromagnetic survey will be conducted to test for extensions of conductors previously observed in both helicopter and ground-loop electromagnetic testing.

Arizona Metals is well-funded to complete its Phase 2 program at Kay Mine Deposit (budgeted at $1.6 million), with $53 million in cash as of Dec 31, 2022. The company plans to conduct an additional 76,000 meters of drilling in its Phase 3 program (budgeted at $32 million) to test numerous parallel targets heading west of the Kay Mine Deposit, as well as possible northern and southern extensions.

Marc Pais, CEO of Arizona Metals, commented in a press release: “The drill results reported today continue to demonstrate the expansion potential of the Kay Mine Deposit itself, and that it has the potential to be part of a much larger mineralized system. In January, we announced that VMS mineralization had been intersected approximately 300 metres north of the Kay Mine Deposit. At the Central Target, located 500 metres west of the Kay Mine Deposit, all the holes that have intersected the electromagnetic anomaly have encountered anomalous zinc and graphite mineralization.

We believe this style of mineralization is consistent with mineralization distal to a primary volcanic hydrothermal vent zone. Support for this model has come from hole KM-23-105, which intersected 2.7 m at 0.5% CuEq, 600 metres north of the Central EM anomaly and 400 metres west of the Kay Mine Deposit (see Fig 2). The presence of this mineralization demonstrates increasing proximity to a hydrothermal vent zone. We view the 600 metres between the Central Target EM anomaly and hole KM-23-105 as highly prospective for massive sulphide mineralization and are planning a number of drill holes to test this area. We are also pleased to report that drilling of the first hole at the Western Target is currently underway and we are now targeting the second hole in this area. Downhole electromagnetic surveying of the first hole is expected to commence shortly”.

Highlights from the results are as follows:

Recent drilling at the Kay Mine Deposit has focused mainly on step-out holes to probe the extent of mineralization.

Hole KM-22-97

• 8.8 m @ 4.8% CuEq and 1.5 m @ 1.3% CuEq
• Along the north edge about mid-way down the deposit, this hole extended mineralization ~100 m north of hole KM-22-71A and confirmed the vertical continuity of high-grade mineralization in the 160 m between holes KM-20-11 and KM-21-19.

Hole KM-22-98

• Three intervals, including 4.6 m @ 0.8% CuEq and 4.3 m @ 0.9% CuEq
• Drilled from pad 1 into the central upper part of the deposit, extending mineralization about 65 m upward into the gap between the upper North and upper South zones.

Hole KM-22-99

• 9.6 m @ 0.6% CuEq and 3.0 m @ 0.9% CuEq
• A step-out hole along the north edge of the deposit. Together with hole KM-22-97, extends mineralization about 160 m north of hole KM-22-71A in the upper middle portion of the deposit.

Hole KM-22-63B

• 1.5 m @ 0.5% Cu Eq
• Deep in the deposit, north of KM-22-63D

Hole KM-22-94

• Three intercepts: 17.7 m @ 0.7% CuEq, 3.2 m @ 1.1% CuEq, and 1.3 m @ 0.8% CuEq.
• This is a step-out hole deep in the deposit along the north edge, 33 m north of hole KM-21-27 and 55 m north of hole KM-22-57B.

Hole KM-22-94A

• Several intercepts, including 10.4 m @ 1.2% CuEq, and 3.4 m @ 2.1% CuEq.
• This hole wedged about 60 m below KM-22-94 and proved continuity between that hole and hole KM-21-51B.

Kay North Extension

Hole KM-22-80

• Two intervals: 5.6 m @ 0.9% CuEq, 3.0 m @ 0.5% CuEq
• Drilled from pad 6 to the east, north of the main Kay Mine Deposit. These intercepts are deep within the footwall of the deposit and are the easternmost intercepts. This suggests either potential for other deeper horizons or possible complex folding.

Hole KM-22-91

• 1.8 m @ 1.1% CuEq
• Drilled from pad 6 to the east. Extends mineralization about 150 m north of KM-22-87, which is located along the northern edge of drilled mineralization.

Central Target

Hole KM-22-95

• 2.7 m @ 0.5% CuEq from 432.8 m downhole. This is a mineralized intercept in a new area: 600 m along strike north from the north end of the Central EM anomaly, and 500 m west of the other drill intercepts in the pad 4 area.
• Drilled northwest from pad 4, to test a strong soil anomaly
• The mineralization is relatively Zn-rich (0.22% Cu, 0.12 g/t Au, 0.61% Zn) and is clearly distal. It lies about 10 m to 20 m downhole of and stratigraphically below the mafic-felsic contact on the east limb of the Central anticline.
• This interval shows mineralization along the prospective horizon far from any other known mineralization.

Kay Mine Project Phase 2 Drill Program Update

With the assayed holes released today, the Company has completed a total of 79,600 meters at the Kay Mine Project since inception of drilling. The Company is fully-funded to complete the remaining 3,800 meters planned for the Phase 2 program with the priority focus areas for upcoming drilling (shown in Figure 1 above) as well as an additional 76,000 meters currently planned for the upcoming Phase 3 program.

Table 1. Results of Phase 2 Drill Program at the Kay Mine Project, Yavapai County, Arizona announced in this news release.

The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 76%. (2) Assumptions used in USD for the copper and gold metal equivalent calculations were metal prices of $4.63/lb Copper, $1937/oz Gold, $25/oz Silver, $1.78/lb Zinc, and $1.02/lb Pb. Assumed metal recoveries (rec.), based on a preliminary review of historic data by SRK and ProcessIQ¹, were 93% for copper, 92% for zinc, 90% for lead, 72% silver, and 70% for gold. The following equation was used to calculate copper equivalence: CuEq = Copper (%) (93% rec.) + (Gold (g/t) x 0.61)(72% rec.) + (Silver (g/t) x 0.0079)(72% rec.) + (Zinc (%) x 0.3844)(93% rec.) +(Lead (%) x 0.2203)(93% rec.). The following equation was used to calculate gold equivalence: AuEq = Gold (g/t)(72% rec.) + (Copper (%) x 1.638)(93% rec.) + (Silver (g/t) x 0.01291)(72% rec.) + (Zinc (%) x 0.6299)(93% rec.) +(Lead (%) x 0.3609)(93% rec.). Analyzed metal equivalent calculations are reported for illustrative purposes only. The metal chosen for reporting on an equivalent basis is the one that contributes the most dollar value after accounting for assumed recoveries.

Table 2. Full results of Phase 2 Drill Program at the Kay Mine Deposit, Yavapai County, Arizona.

The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 76%. (2) Assumptions used in USD for the copper and gold metal equivalent calculations were metal prices of $4.63/lb Copper, $1937/oz Gold, $25/oz Silver, $1.78/lb Zinc, and $1.02/lb Pb. Assumed metal recoveries (rec.), based on a preliminary review of historic data by SRK and ProcessIQ², were 93% for copper, 92% for zinc, 90% for lead, 72% silver, and 70% for gold. The following equation was used to calculate copper equivalence: CuEq = Copper (%) (93% rec.) + (Gold (g/t) x 0.61)(72% rec.) + (Silver (g/t) x 0.0079)(72% rec.) + (Zinc (%) x 0.3844)(93% rec.) +(Lead (%) x 0.2203)(93% rec.). The following equation was used to calculate gold equivalence: AuEq = Gold (g/t)(72% rec.) + (Copper (%) x 1.638)(93% rec.) + (Silver (g/t) x 0.01291)(72% rec.) + (Zinc (%) x 0.6299)(93% rec.) +(Lead (%) x 0.3609)(93% rec.). Analyzed metal equivalent calculations are reported for illustrative purposes only. The metal chosen for reporting on an equivalent basis is the one that contributes the most dollar value after accounting for assumed recoveries.

Table 3. Full results to date of Phase 2 Drill Program at the Kay Mine Deposit, Yavapai County, Arizona. See Table 2 for width and metal equivalency notes.

Table 4. Results of Phase 1 Drill Program at the Kay Mine Deposit, Yavapai County, Arizona. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%.