Toronto, Ontario–(Newsfile Corp. – May 26, 2020) –  Arizona Metals Corp. (TSXV: AMC) (the “Company” or “Arizona Metals”) is pleased to announce that drilling is currently underway at its Kay Mine Project, located near Black Canyon City, Arizona (Figure 1). The first drill was delivered to site on Thursday, May 21, 2020, and began turning on Friday, May 22, 2020. The second drill is scheduled to be delivered on Thursday, May 28, 2020.

Prior to the temporary suspension of the Phase 1 drill program due to the Covid-19 pandemic, seven holes were drilled into the shallowest part of the North Zone, of which six intersected copper-gold massive sulphide mineralization (see April 15th, 2020 press release, and Tables 2 and 3 below). A single hole was drilled into the South Zone and intersected gold-zinc massive sulphide mineralization at a vertical depth of 575 m.

Continuation of Phase 1 Drill Program – Targeting New Gold-Zinc Rich South Zone Intersected by KM-20-09

Hole KM-20-09 intersected 6.1 m at a grade of 4.2 g/t gold and 8.0% zinc, at a vertical depth of 570 m in the South Zone. Hole KM-20-10 is currently underway and is targeting the 1500-foot level of the South Zone, at a vertical depth of 500 m (Figure 2). On completion of hole KM-20-10, the Company intends to use it as a trunk hole, from which at least two branch holes will be wedged; holes KM-20-10A and KM-20-10B. The Company is targeting hole KM-20-14 to test the extensions of this gold-zinc rich intersection in the South Zone. This hole is intended to be a trunk hole, from which at least two branch holes will be wedged, holes KM-20-14A and KM-20-14B.

Expanding Confidence in North Zone Targets at Depth

It is expected that hole KM-20-11 will start on Friday, May 29, 2020, once the second drill has been delivered to site. This hole will target the 1500-foot level of the North Zone, at a vertical depth of 500 m, expanding confidence in the zone at depth as the first 6 holes targeted only to a depth of 170 m. On completion, the Company intends to use this hole as a trunk hole, from which at least two branch holes will be wedged, holes KM-20-11A and KM-20-11B. The use of branch holes, combined with directional drilling, has the potential to significantly reduce the cost and time to reach individual drill targets, while also improving the accuracy of targeting. Hole KM-20-12 is targeted at historic gold- and copper-rich samples on the 1350-foot level of the South Zone. Hole KM-20-13 is targeted at historic gold- and copper-rich samples on the 1000-foot level of the North Zone. The proposed hole locations for the completion of the Phase 1 program can be found in Table 1 and Figure 2 below.

Table 1. Proposed Hole Locations for Completion of Phase 1 Program at Kay Mine, Arizona

Figure 2: Section looking northeast at the Kay Mine Project, Yavapai County, Arizona.
See Tables 1 and 2 for constituent elements and grades of CuEq% and AuEq g/t.

Covid-19 Monitoring and Mitigation Procedures

The Company’s drill contractor, Boart Longyear, has instituted Covid-19 monitoring procedures for all drill crew members, including daily temperature and symptom checks. Arizona Metals Corp will be provided with daily health tracking updates for the drill crews and has also instituted its own social distancing policies and provided a guidance manual for employees at site.

Summary of North Zone Drill Results (for detail, see April 15th, 2020 press release):

Holes KM-20-01 through KM-20-06 all intersected massive sulphide mineralization. Hole
KM-20-07 did not intersect significant mineralization and is believed to have passed between the North and South Zones. Arizona Metals’ drilling tested a vertical extent of approximately 50 m in the North Zone, to a vertical depth between 120-170 m. Historic underground exploration by Exxon Minerals reported mineralization at depths in the North Zone of up to 300 m below recent drilling by Arizona Metals.

Highlights of the first six holes in the North Zone include:

KM-20-03: 2.7 m grading 5.41% CuEq (incl. 0.9 m of 10.32% CuEq), from a depth of 120 m

KM-20-03A: 4.6 m grading 6.85% CuEq (incl. 0.8 m of 18.19% CuEq) from a depth of 122 m

KM-20-05: 2.4 m grading 9.19% CuEq (incl. 1.2 m of 13.89% CuEq) from a depth of 150 m

KM-20-06: 13.5 m grading 2.92% CuEq (incl. 4.9 m of 4.54% CuEq) from a depth of 158 m

Table 2. Results of Initial Drill Program at Kay Mine North Zone, Yavapai County, Arizona(1) True widths of the reported mineral intervals have not been determined; additional drilling is required.
(2) Assumptions used in USD for the copper equivalent calculation were metal prices of $2.28/lb Copper, $1650/oz Gold, $15/oz Silver, $0.86/lb Zinc, $0.77/lb Pb and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Gold (g/t) x 1.06) + (Silver (g/t) x 0.0096) + (Zinc (%) x 0.3772) +(Lead (%) x 0.3377).

Summary of South Zone Drill Results (for detail, see April 28th, 2020 press release):

Prior to the temporary suspension of the Phase 1 drill program due to the Covid-19 pandemic, a single hole was drilled into the South Zone and intersected gold-zinc massive sulphide mineralization at a vertical depth of 575m, with the following highlighted interval:

KM-20-09: 6.1 m grading 7.8g/t AuEq, including 4.4 m grading 9.3g/t AuEq, and also including 1.1 m grading 16.0 g/t AuEq (Table 1).

This intersection is approximately 160 m vertically above and 100 m to the south of hole KM-8, drilled by Exxon Minerals in 1977, which returned a true width intersection of 10.3 m at a grade of 3.9% Cu and 1.7 g/t Au (6.5% CuEq). Exxon Minerals also reported significant historic intersections located approximately 150 m vertically above hole KM-20-09 in the South Zone. The primary zinc mineralization observed in hole KM-20-09 is in sphalerite, with minor amounts of copper in chalcopyrite (Figure 2).

Table 3. Results of Initial Drill Program at Kay Mine South Zone, Yavapai County, Arizona
(1) True widths of the reported mineral intervals have not been determined; additional drilling is required
(2) Assumptions used in USD for the gold equivalent calculation were metal prices of $2.28/lb Copper, $1650/oz Gold, $15/oz Silver, $0.86/lb Zinc, $0.77/lb Pb and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate gold equivalence: AuEq = Gold (g/t) + (Copper (%) x 94.72) + (Silver (g/t) x 0.009) + (Zinc (%) x 35.73) +(Lead (%) x 31.99).

Historic data by Exxon Minerals and previous operators showed gold and zinc increasing at depth and to the south, with copper decreasing. Exxon Minerals also reported that, “isoclinal folding of the massive sulphide horizon at Kay Mine could have resulted in the formation of a number of en-echelon cigar-shaped massive sulphide boudins with the longest axes parallel to the plunge of the fold axes. The North and South Mineralized Zone could represent two of these lenses, but several more may occur to the south along strike of the Kay Mine horizon” (Westra, 1977).

Financing Update

On May 13th, 2020, Arizona Metals announced that Stifel GMP and Canaccord Genuity Corp, the “Underwriters,” had agreed to increase the Underwriter’s Option to 4,650,000 units, which if exercised in full will results in gross proceeds to the Company of $6,045,000. The completion of the Offering shall be subject to, among other things, the receipt of all necessary regulatory and stock exchange approvals relating to the Offering as are appropriate in the circumstances, including the approval of the TSX Venture Exchange (the “TSXV”) prior to the Closing Date, on or about May 29, 2020.

Sugarloaf Peak Project Update

Arizona Metals 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 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 be compliant with current NI 43-101 standards. 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 Company has received approval of its drill permit at Sugarloaf, and has submitted a reclamation bond with the Bureau of Land Management. The 5,000 m core and RC drill program is intended to test the strike extensions of the Sugarloaf deposit, and test geophysical anomalies. Preparations are underway for drilling of the first three holes, intended to test deep geophysical anomalies and potentially provide material for metallurgical testing, planned to consist of bottle-roll and column leach recovery tests.