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CORRECTION FROM SOURCE: Arizona Metals Corp.
TORONTO, Sept. 15,
2023 /CNW/ - Arizona Metals Corp. (TSX: AMC) (OTCQX:
AZMCF) (the "Company" or "Arizona Metals") issues a correction to
the press release titled Arizona Metals Announces Positive
Oxide and Sulphide Recoveries at Sugarloaf Peak Gold Project,
released on September 12, 2023 at
5:00 am ET.
The original press release incorrectly stated that the Company
has engaged SRK Consulting (Global) Limited, whereas it should
have stated that the Company engaged SRK
Consulting (Canada) Inc.
("SRK"). Additionally, the press release has been corrected
to clarify the distinction between the bottle-roll and coarse
column-leach test conditions of previous work conducted under the
supervision of Kappes, Cassiday and Associates and the results of
that work, and the recent finer-ground test conditions for sulphide
material of the recent SRK-supervised work.
The complete corrected press release follows:
Arizona Metals Corp. (TSX: AMC) (OTCQX: AZMCF) (the "Company" or
"Arizona Metals") is pleased to announce positive metallurgical
testing results from its 100% owned Sugarloaf Peak Gold Project
("Sugarloaf") in La Paz County, Arizona.
Arizona Metals previously engaged Kappes, Cassiday and
Associates to conduct bottle-roll and coarse-crushed column leach
testing on two metallurgical holes (SP-20-01 and SP-20-02). As
previously announced, the initial results from these tests achieved
gold recoveries averaging 76% with oxide material recoveries as
high as 95% for bottle-roll tests. Additionally, the results of
column testing of Sugarloaf oxide material achieved gold recoveries
of up to 90%.
As a result of these initial results, the Company engaged SRK
Consulting (Canada) Inc. to
oversee metallurgical test work to develop low-cost flow sheets to
recover gold from the sulphide zone. This work focused on grinding
the Samples (as defined below) to a finer size before leaching.
Additional metallurgical testing was also completed with a focus on
developing a conventional low-cost flowsheet to recover
sulphide-hosted gold at Sugarloaf. Two sulphide flowsheets were
considered for this test work: Whole-Ore-Leach (WOL) and bulk
flotation followed by fine grinding of concentrate and
leaching.
Four sulphide composite samples (the "Samples") were prepared,
ranging from 0.30 to 0.60 g/t gold and 2.2 to 5.3% sulfur. The test
results indicated gold recoveries of up to 85%. Both flowsheet
options were similar with overall final recoveries within 1% for
all the Samples. Leaching kinetics for all four composite samples
were fast, reaching maximum recovery at 24 hours. Comminution tests
indicated a relatively soft material with SAG Circuit Specific
Energy (SCSE) values of 7.8 kWh/t.
Mineralogy and diagnostic leach tests on the Samples indicate
the majority of gold is present as free gold within sulphides,
primarily pyrite. As the Samples tested demonstrated relatively
soft material, it is likely that WOL will be the preferred
processing method. The Company will conduct additional WOL leach
tests to optimize grind size vs recovery, as well variability
testing of different samples using the WOL flowsheet.
Sugarloaf hosts a tabular, open-pit type target that starts at
surface. The project comprises 4,412 acres of unpatented BLM
federal mining claims that are close to infrastructure including
roads, gas, power, water, rail and labour. Recent drilling
completed by Arizona Metals (SP-20-01) intersected 137
m grading 0.53g/t gold (including 90 m of 0.62 g/t
gold) starting from surface, and 30 m of 0.90g/t gold,
starting from 44 m. The Company intends to complete additional
drilling in the future in order to confirm, and ideally expand, the
historic resource of 1.5 million gold ounces. There are currently
26 drill pads permitted to carry out this work. A comprehensive
drill program and budget is being formulated with the intention of
commencing work when the gold resource capital markets improve.
Marc Pais, CEO, commented
"The historic estimate* at the Sugarloaf Peak Gold Project of
1.5 million ounces at 0.5 g/t gold was defined to a depth of only
70 metres. Testing has confirmed that oxide material near surface
can achieve recoveries of up to 90% using conventional leaching. We
believe there is also the potential for an underlying large
sulphide deposit at depths below what was tested by historic
drilling. Recent drilling by Arizona Metals encountered
sulphide-hosted gold at depths down to 369 metres. The deposit is
also open for expansion on strike, with the same geophysical
signatures we see on the historic resource extending for more than
double the strike length both to the northwest and southeast of the
historic resource envelope. In addition to the excellent oxide
recoveries, today's positive test results on the sulphide component
of mineralization demonstrates the potential for a conventional
low-cost flowsheet for sulphide material encountered below the
historic resource. The Sugarloaf Peak Gold Project is
fully-permitted for drilling, with 26 pads targeted for both infill
and expansional drilling at depth and on strike. Drilling will be
undertaken in due course to outline the size potential of the
sulphide mineralization."
Kay Mine Drilling Update:
The Company has completed seven drill holes at the Western
Target of the Kay Mine Project, with the eighth nearing completion.
The Company intends to release results of these holes, totalling
approximately 7,000 metres of drilling, together once final assays
have been received. The Company has also completed downhole
geophysical surveys on these holes, with data currently being
processed. Resource definition and expansion drilling continues at
the Kay Mine Deposit, with five holes completed and two underway.
Assays are pending.
Beaver Creek Presentation Information
The Company will be presenting an update at the Beaver Creek
Precious Metals Summit on Tuesday, September 12th,
2023 at 3:15 pm MT. The Company will post a link to the
presentation on its website following the conference.
About Arizona Metals Corp
Arizona Metals Corp owns 100% of the Kay Mine Project
in Yavapai County, which is located on a combination of
patented and BLM claims totaling 1,300 acres that are not subject
to any royalties. An historic estimate by Exxon Minerals in 1982
reported a "proven and probable reserve of 6.4 million short tons
at a grade of 2.2% copper, 2.8 g/t gold, 3.03% zinc, and 55 g/t
silver." (Fellows, M.L., 1982, Kay Mine massive sulfide deposit:
Internal report prepared for Exxon Minerals Company, November
1982, 29 p.) The historic estimate at the Kay Mine Deposit was
reported by Exxon Minerals in 1982. The historic estimate has not
been verified as a current mineral resource. None of the key
assumptions, parameters, and methods used to prepare the historic
estimate were reported, and no resource categories were used.
Significant data compilation, re-drilling and data verification may
be required by a "qualified person" (as defined in National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects) before the historic estimate can be verified and
upgraded to be a current mineral resource. A qualified person has
not done sufficient work to classify it as a current mineral
resource, and Arizona Metals is not treating the historic estimate
as a current mineral resource.
The Kay Mine Deposit is a steeply dipping VMS deposit that has
been defined from a depth of 60 m to at least 900 m.
It is open for expansion on strike and at depth.
The Company also owns 100% of the Sugarloaf Peak Property,
in La Paz County, which is located on 4,400 acres of BLM
claims. Sugarloaf is a heap-leach, open-pit target and has a
historic estimate of "100 million tons containing 1.5 million
ounces gold" at a grade of 0.5 g/t (Dausinger, 1983, Westworld
Resources).
*The historic estimate at the Sugarloaf Peak Gold Project was
reported by Westworld Resources in 1983 (Dausinger, 1983, Westworld
Resources). The historic estimate has not been verified as a
current mineral resource. None of the key assumptions, parameters,
and methods used to prepare the historic estimate were reported,
and no resource categories were used. Significant data compilation,
re-drilling and data verification may be required by a qualified
person before the historic estimate can be verified and upgraded to
a current mineral resource. A qualified person has not done
sufficient work to classify it as a current mineral resource, and
Arizona Metals is not treating the historic estimate as a current
mineral resource.
SOURCE Arizona Metals Corp.