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Arizona Mining increases resource on Taylor Deposit to 39.4 million tonnes at 11 % ZnEqVANCOUVER, Feb. 1, 2016 /PRNewswire/ - 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
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 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. Qualified Person Assays and Quality Assurance/Quality Control 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 Cautionary Note Regarding Forward-Looking Information 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. |