Arizona Mining Inc. [AZ-TSX; WLDVF-OTC] on Wednesday January 24 reported high-grade zinc-lead and silver values in drill holes results from its 100%-owned Hermosa Project in Santa Cruz County, Arizona.
These results are part of a 55,000-metre infill and step-out drilling that will be included in the feasibility study, marking the next key step after a preliminary economic assessment update (PEA) was released on January 16, 2018. Based on the updated PEA, the company continues to target first mineralized material-to-plant from a proposed 10,000 ton-per-day operation in 2020.
The Hermosa property is located about 80 km southeast of Tucson, about 13 km north of the U.S. border with Mexico. Situated 1,600 metres above sea level, the property hosts two stratigraphically controlled mineral deposits, the Taylor Deposit and Central Deposit.
The current program is focused on the expansion of the Taylor Sulfide and Taylor Deeps zones. The company said assay results announced in Wednesday’s press release are from successful step-out exploration and infill drill holes highlighting the continued potential for resource growth.
The Taylor deposit, a zinc-lead silver carbonate replacement deposit, has a resource of 15.2 million tons in the measured mineral resource category, grading 4.0% zinc, 4.0% lead, and 1.6 oz/ton silver, or 9.6% zinc equivalent, plus 85.8 million tons in the indicated category, grading 4.2% zinc, 4.3% lead, and 2.2 ounces per ton silver, or 10.5% zinc equivalent.
On top of that is 43.6 million tons in the inferred category, grading 3.9% zinc, 4.8% lead, 3.4 oz/ton silver or 11.9% zinc.
The Taylor and Taylor Deep deposits remain 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 said.
Highlights from Wednesday’s press release include a 31-foot intersection assaying 40.9% combined zinc-lead, and 11.7 oz/ton silver within an 81-foot thick interval assaying 27.1% combined lead-zinc, and 6.8 oz/ton silver. “This hole demonstrates the lateral continuity of mineralization in the Taylor Sulfide as well as the Taylor Deeps and confirms the high-grade nature of Deeps mineralization as well as the very high-grade silver kickers, wrote Scotiabank analyst Trevor Turnbull in a research report. He said the latest drill results indicate that the Taylor Deeps is the highest value portion of the deposit.
“Our exploration drilling continues to expand both the Taylor Sulfide and Taylor Deeps Zones, while the infill drilling is demonstrating continuity between areas,” said Don Taylor, Arizona Mining’s Chief Operating Officer.
“As we continue to grow the resource it is amazing how many new areas of high-grade mineralization have been added, especially in the Taylor Deeps Zone,” he said.
Arizona Mining shares rallied on the news, rising 5% or $0.23 to $4.79.