VANCOUVER, BC—(Marketwired – October 31, 2016) – Arizona Mining Inc. (TSX: AZ) (“Arizona Mining” or the “Company”) is pleased to announce a Mineral Resource update for the Taylor Zn–Pb–Ag sulfide deposit located on its 100%–owned Hermosa Project in Arizona. The deposit now comprises 31.1 million tons in the Indicated Mineral Resource category grading 10.9% zinc equivalent (“ZnEq”) plus 82.7 million tons of Inferred Mineral Resource grading 11.1% zinc equivalent (ZnEq), both reported in accordance with NI 43–101 guidelines utilizing a 4% ZnEq cutoff grade.
CEO Jim Gowans commented, “Based on work to date, this updated Mineral Resource estimate indicates that the Taylor Deposit has expanded substantially and continues to be one of the best quality growth stories in the mining sector. In addition, should the technical feasibility and economic viability of the project be established, continued metallurgical testing indicates the deposit will produce clean, saleable concentrates with no deleterious elements.”
|Table 1. Taylor Deposit Indicated and Inferred Mineral Resources|
|Indicated Mineral Resource|
|Cutoff||Short Tons||ZnEq %||Zn %||Pb %||Cu %||Ag opt|
|Inferred Mineral Resource|
|Cutoff||Short Tons||ZnEq %||Zn %||Pb %||Cu %||Ag opt|
COO Don Taylor added: “Infill drilling has highlighted high grade zones within the resource, which is also showing excellent continuity that should enable bulk mining methods. What is not evident from the results is that the resource remains open for expansion to the north, west and south over mineral rights controlled by the Company. In addition to the zinc–lead–silver mineralization other target types have been identified on the mineral holdings and will be drill tested in the coming months.”
The resource is based on assay results from 59 surface diamond drill holes, totaling 206,192 feet (62,863 meters) of drilling, which have all intersected stratabound carbonate replacement sulfide mineralization within the Taylor Deposit. The updated Mineral Resource Estimate was prepared by AMC Mining Consultants (Canada) Ltd. (AMC) of Vancouver, B.C.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of mineral resources will be converted to mineral reserves. Inferred Mineral Resources are based on limited drilling which suggests the greatest uncertainty for a resource estimate and that geological continuity is only implied. Additional drilling will be required to verify geological and mineralization continuity and there is no certainty that all of the inferred resources will be converted to measured and indicated resources. Quantity and grades are estimates and are rounded to reflect the fact that the resource estimate is an approximation.
The Taylor Deposit Mineral Resource update was carried out using Ordinary Kriging of drill core sample data that was composited to 10 feet in length. The compositing process honored lithological domain boundaries. Tonnages and grades of lead, zinc and silver were estimated for seven separate lithological domains. In all cases boundaries between domains were treated as “hard”, meaning that grades from adjacent domains were not used to influence the estimation of grades within a given domain.
Because of the sparsity of bulk density data, a formula using the analyzed abundances of zinc, lead and copper was used. This formula produces bulk density values within approximately 10% of a set of 30 samples of various grades of mineralization for which bulk density measurements were made.
Top cut analysis was carried out using log cumulative probability plots for all metals. Only silver was determined to require capping and was capped at 42 ounces per short ton.
Variographic analysis was carried out for lead, zinc, silver and copper assay grades and the variograms were employed in the kriging estimation. Search ellipses were constructed for each domain and honoured the attitude of mineralization within each domain. Most search ellipses were 600 feet long in the strike direction, 300 feet wide in the cross–strike direction and 100 feet high (vertical direction). Several domains were estimated using ellipses with a vertical height of 50 feet because of the restricted nature of the mineralization in those domains.
Grades were estimated in a single pass. For a grade to be interpolated into a block it was necessary that a minimum of four composites were located within the search ellipse. A maximum of two composites per hole was allowed to ensure that at a minimum, each block was informed by composites from at least two drill holes. A maximum of 10 composites, representing five drill holes, was allowed.
Blocks were classified as an Indicated or Inferred Mineral Resource. For a block to be classified as Indicated it was necessary that a minimum of eight and a maximum of 10 composites were located within 300 feet of the block centroid; for a block to be classified as Inferred, it was necessary that a minimum of four and a maximum of 10 composites were located within 600 feet of a block centroid. No blocks were classified as Measured Resources as at present, mineralization has not been exposed by underground openings, a circumstance that would be necessary to provide sufficient evidence of continuity to warrant that classification.
The Mineral Resource has been stated in terms of Zinc Equivalent, (ZnEq). The ZnEq formula and the underlying parameters used in its formulation are set out in Table 2. Although the grade of copper was estimated, it was not used as a component of the ZnEq formula because of its relatively low abundance and uncertain mineral processing route.
|Table 2. Zinc Equivalent parameters and formula1|
|Metal||Price (US$)||Recovery (%)|
1 ZnEq = [(Pb/100)*0.9*2000)*0.95 + (Zn/100)*0.95*2000)*0.90 + (20*Ag)*0.85] / (2000*0.95*0.9/100)
The Mineral Resource is summarized in Table 1 (above) at a range of ZnEq cut–off grades. Grades have been rounded to the nearest 0.1% for lead and zinc and the nearest 0.1 ounce per ton for silver. Tons have been rounded to the nearest thousand.
The QP for the Mineral Resource estimate is G. Z. Mosher, P.Geo, an associate of AMC. The Mineral Resource estimate has been prepared under the guidelines of National Instrument 43–101 (“NI 43–101″) for reporting of Mineral Resources.
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, 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 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.