VMS Mineralization Intersection 300 Meters North Of Kay Mine Deposit

TORONTO - Arizona Metals Corp. reported that step-out drilling located 300 meters north and on strike of its Kay Mine Deposit has intersected a new zone of copper-gold VMS mineralization, at depths ranging from 150 to 600 meters vertically below surface. The new zone is open in all directions, with drilling currently underway to test for extensions and thickening of the mineralization encountered to date. The Company is also pleased to report six additional holes from the Kay Mine Deposit, including three infill and three extensional holes.

North Strike Extensional Drilling: Hole KM-22-93 intersected four separate intervals of VMS mineralization over a vertical extent of approximately 140 m (from 470 m to 610 m vertically below surface), including 4.5 m at a grade of 1.8% CuEq, 2.0 m grading 1.5% CuEq, 4.6 m grading 0.8% CuEq, and 1.2 m grading 2.7% CuEq. This hole is approximately 300 m below hole KM-22-30, which intersected 3.0 m grading 1.1% CuEq, and 400 m below KM-22-33, which intersected 1.2 m grading 4.2% CuEq. Mineralization is open in all directions around these intercepts. This hole extends the strike of mineralization approximately 300 m from the northernmost Kay Mine Deposit drill intercept.

Kay Mine Deposit Drilling: KM-22-81B intersected 3.8 m grading 10.7% CuEq from 750 m. This is a step-out hole to the south, which extended mineralization about 50 m south of hole KM-21-52A along the southern edge of the Kay Mine Deposit.

Marc Pais, CEO, saud, “The drill results reported, located 300 meters north of the Kay Mine Deposit, confirm our opinion that the Kay Mine Deposit is potentially part of a much larger mineralized system, typical of what is encountered in other VMS camps around the world. We expect that infill and extensional drilling at the Kay Mine Deposit will continue to expand and improve confidence in its size potential.

Initial testing around the Central Target, from pad 7 has also encountered some encouraging results, with numerous markers typically associated with VMS deposits. These include thick zones of graphite mineralization interbedded with anomalous levels of pathfinder elements, particularly zinc. Drilling will continue at the Central Target, from pads C1 and C2, which we believe are better positioned to test the anomaly, using the results reported as vectors in seeking additional VMS mineralization.

Road construction is well underway to reach drill locations that will test the Western Target, located 1,200 m west of the Kay Mine Deposit, with drilling expected to commence here in Q1’2023. Work will continue at the Kay Mine Deposit to define an initial resource, in conjunction with associated hydrological, rock geochemistry, metallurgical, and specific gravity studies, but we anticipate that over the next 18 months approximately 90% of our budget will go towards exploration south, north, and west of the Kay Mine Deposit.”

KM-22-81B intersected 3.8 m grading 10.7% CuEq (incl. 1.5m grading 14.8% CuEq) from 750 m and three other thinner intercepts below. This is a step-out hole to the south, which extended mineralization about 50 m south of hole KM-21-52A along the southern edge of the deposit.

KM-22-81C returned four intervals, the best of which graded 3.2 m @ 1.6% CuEq and 8.1 m @ 0.8% CuEq. These occur within a larger 49.5-m-thick mineralized envelope grading 0.35% CuEq. This hole extended mineralization about 30 m south of hole 52 on the south edge of the deposit. Mineralization is open to the south of hole 81C.

KM-22-86A intersected three intervals, including 1.1 m @ 0.67% CuEq. This step-out hole extended mineralization 40 m south of hole 10C along the shallow southern edge of the deposit. Hole 86A was a branch hole drilled to extend hole 86, which was lost when it intersected historic mine workings.

Drilling Details—Kay North Strike Extension

KM-22-82: results from additional sampling returned 2.4 m @ 1.3% CuEq, extending mineralization approximately 75 m north of hole KM-20-03 in the North Zone of the Kay Mine Deposit. KM-22-87 intersected 8.2 m @ 0.5% CuEq, including 0.6 m @ 1.8% CuEq and extended mineralization approximately 100 m north of hole KM-20-03 on the north edge of the Kay Mine Deposit.

KM-22-88 hosted 0.9 m @ 2.7% CuEq, which demonstrates continuity of mineralization within the 100 m north step-out achieved by hole 87.

KM-22-89 intersected 1.4 m @ 1.2% CuEq; this locates the Kay Mine Deposit mineralized horizon about 100 m north of hole 19, and demonstrates depth potential in this area at a vertical depth of approximately 390 m below surface.

Hole KM-22-93 intersected four separate intervals of VMS mineralization over a vertical extent of approximately 140 m (from 470 m to 610 m vertically below surface), including 4.5 m at a grade of 1.8% CuEq, 2.0 m grading 1.5% CuEq, 4.6 m grading 0.8% CuEq, and 1.2 m grading 2.7% CuEq. This hole is approximately 300 m below hole KM-21-30, which intersected 3.0 m grading 1.1% CuEq, and 400 m below KM-21-33, which intersected 1.2 m grading 4.2% CuEq. Mineralization is open in all directions around these intercepts. This hole extends the strike of mineralization approximately 300 m from the northernmost Kay Mine Deposit drill intercept, and points to depth potential along the north strike extension.

With the assayed holes released, the Company has completed a total of 74,800 meters at the Kay Mine Project since inception of drilling. The Company is fully-funded to complete the remaining 8,500 meters planned for the Phase 2 program with the priority focus areas for upcoming drilling as well as an additional 76,000 meters in the upcoming Phase 3 program.

The Phase 3 drill program will test the numerous parallel targets heading west of the Kay Mine Deposit, as well as the possible northern and southern extensions. The road to the Central Target (located 300 m west of the Kay Mine Deposit) is complete, and drilling at the Central Target pads commenced during November 2022.

A total of six holes were drilled to the west from pad 7, but due to the westerly dip of the stratigraphy and the Central Target EM anomaly, these holes did not fully test the Central Target. Results from these six holes, along with updated structural mapping and ground-loop EM geophysics, will be used to refine the drill targeting from pads C1 and C2. The location of these pads will provide much better angles to intersect the core of the Central Target, while also testing for its extensions north and south along strike of the mafic-felsic contact that potentially hosts mineralization.