Independent Metallurgical Review Of The Kay Mine Demonstrates Potential To Produce Clean, Saleable Copper And Zinc Concentrates Using Standard Processing Methods

TORONTO - Arizona Metals Corp. reported the results of a metallurgical review of the Kay Mine Project by SRK Consulting (SRK). SRK reviewed historical information on the Kay Mine and projects in the vicinity, as well as data from recently completed drilling. This included a review and comparison of volcanogenic massive sulphide (“VMS”) type deposits in the region and elsewhere, with similar geology and mineralization to the Kay Mine. SRK also reviewed typical processing methods for mineralization similar to the Kay Mine, and then summarized potential optimum methods for processing at the Kay Mine.

SRK’s review concluded that there is sufficient evidence from historic records and recent exploration drilling and structural geological mapping by Arizona Metals to conclude that “the Kay Mine has similar metallurgical characteristics and similar grades to the likes of Hudbay’s 777 and Lalor Mines, and Glencore’s Kidd Creek Mine”. It is anticipated that metallurgical processing of Kay Mine mineralization would utilize industry standard and well understood beneficiation methods of crushing, milling and differential flotation to produce separate saleable copper and zinc concentrates with recoveries ranging from 80% to 90% for both copper and zinc. Gold and silver are expected to report to both concentrates, with recoveries of approximately 60% for each.

Based on a review of assay data from recent drilling, it is expected that the Kay Mine has the potential to produce concentrates with low to negligible deleterious element content. Antimony grades in mineralized intervals drilled to date average 544 ppm. Arsenic averages 0.9% in drilled mineralization, but can typically be reduced in the flotation process. The grades of cobalt, bismuth, nickel, cadmium, and mercury averaged tens of ppm or near/below method detection limits. The data currently available suggest that deleterious elements are not anticipated to have a significant impact on eventual economic extraction.

The host rocks are considered by SRK to be of medium hardness. Fracturing occurs more easily along mineral boundaries and foliation planes. The highly mineralized zones, consisting of massive sulphides (mainly pyrite) within darker chlorites, are anticipated to be harder than the host rock. Early estimations are that crushing and milling requirements would be of a moderate nature and would not be an impediment to economic extraction.

SRK’s review also outlined a program of further metallurgical testing, including petrographic studies, batch scouting flotation tests, and comminution testing.

Marc Pais, CEO, commented “SRK’s metallurgical review of the Kay Mine Project has concluded that standard processing methods should be able to produce high-quality concentrates of both copper and zinc, with good recoveries and low deleterious element content. This is another important de-risking milestone towards bringing the Kay Mine closer to production. We plan to incorporate SRK’s additional testing recommendations into future programs in order to define a detailed flotation flowsheet for the Kay Mine deposit. We plan to use drill core from the recently completed Phase 1 program, as well as the upcoming Phase 2 drill program, to undertake detailed petrographic and batch testing.”