Arizona Mining increases resource on Taylor Deposit to 39.4 million tonnes at 11 % ZnEq
VANCOUVER, Feb. 1, 2016 /CNW/ - Arizona Mining Inc. (TSX: AZ) ("Arizona Mining" or the "Company") is pleased to announce a resource update for the Taylor Zn-Pb-Ag sulfide deposit located on its Hermosa Project in Santa Cruz County, Arizona USA. The deposit now comprises 39.4 million tonnes in accordance with the NI 43-101 Inferred Mineral Resource category grading 11.04% zinc equivalent ("ZnEq") utilizing a 6% ZnEq cutoff grade.
CEO Jim Gowans commented, "This updated resource estimate confirms what the drill results and geology have been telling us for some time - that we have the potential makings of a significant zinc/lead/silver deposit. All drill holes completed since we initiated the drill campaign in the fall of 2014 encountered relatively high grade sulfide mineralization over significant thicknesses. The deposit remains open for expansion to the north, west and south over ground controlled by the Company and will be tested through an extensive drill campaign. This resource estimate, combined with the expansion potential and recently released metallurgical results, clearly indicate that the Taylor Deposit could be one of the best growth stories in base metals for 2016."
Taylor Deposit Inferred Mineral Resources
|Zn Eq% Cutoff||Zn Eq% Grade||Tonnes (Mt)||Pb%||Zn%||Cu%||Ag g/t|
|Results are based on a ZnEq grade calculated with the following metal prices: $0.85/lb
for lead and zinc; $2.25/lb for copper; $15/oz for silver. It is recognized for the Taylor Deposit that while Zn and Pb contribute approximately equally to the resource calculations, we have chosen to report Zn equivalents for calculation of the cut-off grade and the equivalents grade for the resource. Base Case highlighted.
The resource is based on assay results from 25 surface diamond drill holes, totaling 19,648 meters (64,461 feet) of drilling, which have all intersected stratabound carbonate replacement sulfide mineralization within the Taylor Deposit. The updated Mineral Resource Estimate was prepared by Metal Mining Consultants Inc. of Highlands Ranch, Colorado.
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 (25 holes) 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.
Discontinuous and isolated pods of mineralization were excluded from the mineral resource estimate. Excluded blocks do not represent mineable volumes of material and do not meet the reasonable prospects of eventual economic extraction for resource classification. Continuous blocks, that imply continuity of mineralization, were further evaluated to establish a breakeven ZnEq cutoff grade. It is assumed that industry standard froth flotation will be used as the mineral processing method. Assumptions used to calculate a breakeven ZnEq cut-off grade are $US45.75/tonne (mining, processing and G&A), 85% zinc recovery and $US0.85 per lb. zinc selling price. A breakeven ZnEq cut-off grade of 3% was estimated. A 6% ZnEq grade was selected as the Base Case cut-off grade for this updated resource estimate.
Mineral Resource Model
A total of three geologic domains were modeled for the Taylor Deposit (Manto, Top and Bottom), which consists of stratabound skarn and massive sulfide carbonate (limestone) replacement mineralization. The Top and Bottom domains were created to define the upper and lower limits of sulfide mineralization which typically is the boundary between the overlying Cretaceous volcanic units and lower Concha, Scherrer, Epitaph carbonate units, as well as two oxidized ore types. Within the Top and Bottom domains are horizons of sulfide and oxide mineralization. Sulfide mineralization is hosted in intervals marked as containing no iron oxide minerals but containing sulfide minerals of lead, zinc, copper and iron. Oxide mineralization, those zones in the core containing predominantly iron oxide, is mineralogically different from the sulfide mineralization and is excluded from this mineral estimate.
The mineral resource was estimated using 19,648 meters (64,461 feet) of drilling from 25 drill holes that intercepted sulfide mineralization associated with the Taylor Deposit. Composites were constructed using 20 feet (6.1 meter) down-the-hole composite lengths. A total of 2,646 x 20 ft (6.1 meter) Ag composites and 2,647 x 20 ft. (6.1 meter) Cu, Pb and Zn composites were used to estimate the mineral resource. Metal grades were interpolated using inverse distance to the fifth (ID5). Estimation parameters were determined by the trend of the mineralization, and strike and dip of the lithologic units that host the deposit.
Scott Wilson, President of Metal Mining Consultants, is an independent qualified person as defined by National Instrument 43-101 and has approved and verified the information in this news release in relation to the Taylor Deposit resource estimates. Mr. Wilson is a Certified Professional Geologist and member of the American Institute of Professional Geologists (CPG #10965) and a Registered Member (#4025107) of the Society of Mining, Metallurgy and Exploration, Inc., a professional association and designation recognized by the Canadian regulatory authorities.
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.
Post March 2014, 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 triggers a fire assay with gravimetric finish analysis.
About Arizona Mining
Arizona Mining Inc. is a Canadian mineral exploration and development company focused on the exploration and development of its 80% 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 NI 43-101 guidelines. 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 completed 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, 2014 ("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.
SOURCE Arizona Mining Inc.