Arizona Metals Corp.

Company Data | Introduction | Projects in Hand | Management
News Update | Chinese

Company Data

Introduction

Arizona Metals Corp. owns 100% of the Kay Mine Project in Yavapai County, Arizona, which is located on a combination of patented and Bureau of Land Management (BLM) claims totaling 1,300 acres that are not subject to any royalties.

The Company also owns 100% of the Sugarloaf Peak Gold Project, in La Paz County, Arizona, which is located on 4,400 acres of BLM claims. Sugarloaf is a heap-leach, open-pit target.

Arizona:

• The Leading Producer of Copper in the US
• Arizona Ranked 7th of 62 for Investment Attractiveness – Fraser Institute 2022

Arizona Metals is Unearthing a World-Class Gold-Copper-Zinc Volcanogenic Massive Sulphide (VMS) Deposit

What Distinguishes Arizona Metals?

• Grade and Width (93.3 m at 8.3 g/t AuEq in KM-22-60 and 125 m at 3.2% CuEq in KM-22-57B)
• Polymetallic VMS – Copper, Gold, Zinc, Silver
• Scale Potential – less than 10% of prospectively mineralized horizon has been drill tested
• Location – private and Bureau of BLM claims with excellent infrastructure
• Fully-funded to advance Kay Mine Deposit and test surrounding targets. Cash Position of $40 million (Sept. 30, 2023)
• Two New Companies – Proposed Spin-Out of Sugarloaf Peak Gold Project and Kay Royalties to Create Two New Companies (See news release dated Jan 22, 2024)
• Strong Community Support for Kay Mine Project Development

Executive Summary

• Two 100% owned projects in mining-friendly Arizona
• Kay Mine & Sugarloaf Peak
• Excellent infrastructure at both projects: road, power and water access
• Kay Mine Phase 2 Expansion Drill Program (>75,000m) in progress
• Kay Mine Phase 3 Program to test Central and Western Targets commenced November 2022 (76,000m)
• Kay metallurgical testing underway (results expected 2024)
• Independent consulting firms have been engaged to model drill data as holes are completed and assays become available in preparation for a maiden resource estimate with the intention to complete drilling of all priority targets before finalizing a maiden resource estimate.

Spinning-Out Two New Companies to Shareholders

Sugarloaf Gold Corp. – Creating a New Pure Gold Vehicle

• Sugarloaf Project has the potential to be a multi-million ounce deposit (the starting point is 1982 historic estimate of 1,500,000 ounces gold) and can stand alone as a public asset
• The Sugarloaf Peak Gold deposit is open laterally and at depth, and recent preliminary metallurgical work has shown good recoveries for the oxide and sulfide portions of the deposit

Arizona Royalties Corp. – Launching a World-Class Royalty Platform

• Shareholders of Arizona Royalties Corp. will have ownership in a startup royalty company with its initial assets consisting of a 2% royalty on the world-class Kay Mine Deposit as well as a second 2% royalty on the highly prospective surrounding Bureau of Land Management exploration claims

KAY MINE PROJECT

Kay Mine Project Overview

• Located in Prolific Mining District
• 60 past-producing underground Cu-Au-Zn VMS mines within 150 km radius of Kay Mine
• Phelps Dodge’s United Verde Mine (1 hour north of Kay) produced 30Mt at 5% Cu from an open pit, and 4Mt at 10% Cu from underground
• Kay Mine Deposit Value by Metal
• Historic resource is 52% precious metals by value at spot prices
• Metal content calculated at metals prices of US$1,840/oz Au, US$24/oz Ag, US$3.50/lb Cu, and US$1.24/lb Zn. Recoveries are assumed to be 100% as no metallurgical data available

Kay Mine Key Milestones

Phase 1 Drill Program Highlights

• KM-20-13: 43.1 m of 3.94% CuEq (incl. 15.2 m of 6.7% CuEq)
• KM-20-16: 38.4 m of 2.9% CuEq (incl. 12.5 m of 6.0% CuEq)
• KM-20-14: 39.9 m of 3.4% CuEq (incl. 3.5 m of 11.6% CuEq, and 3.5 m of 6.6% CuEq)
• KM-20-14A: 22.5 m of 2.4% CuEq (incl. 0.8 m of 14.0% CuEq and 4.1 m of 5.2% CuEq)
• KM-20-10B: 27.6 m of 2.9% CuEq (incl. 3.5 m of 6.7% CuEq)
• KM-20-09: 6.1 m of 7.8 g/t AuEq (incl. 4.4 m of 9.3 g/t AuEq)
• KM-20-10C: 6.8 m of 7.3 g/t AuEq (incl. 4.3 m of 10.1 g/t AuEq)

Preliminary Metallurgical Review Completed

• Potential to produce payable copper and zinc concentrates with gold and silver credits
• Low deleterious elements for clean concentrates
• Upcoming test program will include petrography, comminution and batch floatation

Acquisition of Private Land and Water Rights

• August 2023 – Announced the acquisition of 46 acres of private land
• Includes mineral and water rights
• Provides water for drilling and future development
• Private land for future mine infrastructure

Phase 2 Drill Program Commenced

• Drilling underway at Central target – initial program of 11,000M from Pad 7
• Only 3% of Mafic-Felsic contact on Kay Property has been drill-tested

Permits Received to Commence Phase 3 Drill Program Testing Central and Western Targets (76,000 m)

• Hole KM-22-95, located 600 m N of Central Target, hit 2.7 m at 0.5% CuEq
• Hole KM-23-104, at Western Target – intersected 63 m of sulphide mineralization, ending in 16m of stringers to semi-massive sulphides (including visible sphalerite and chalcopyrite)
• Hole KM-23-113 at Western Target – intersected 3.0 m of 3.0 g/t Au, 1.3% Zn, and 17 g/t Ag (3.2 g/t AuEq, after recoveries), including 0.9 m at 9.2 g/t Au, 3.4% Zn, and 45 g/t Ag (9.4 g/t AuEq, after recoveries)

Mine Metallurgical Testing Ongoing; Continued Resource Drilling

• Test work underway includes bond work index, flotation, density, gravity recovery, and detailed characterization of mineralogy
• Expected to be completed in 2024

Kay Mine Discovery Zone

Discovery Zone Hits Numerous Wide Intersections of High-Grade

• 79 m of 7.0 g/t AuEq
• 54 m of 9.4 g/t AuEq
• 97 m of 6.1 g/t AuEq
• 103 m of 4.1 g/t AuEq
• 76 m of 5.8 g/t AuEq
• 65 m of 5.2 g/t AuEq
• 63 m of 4.8 g/t AuEq
• 91m of 4.7 g/t AuEq

Discovery Zone Drilling Continues to Hit High-Grade

• 7.9 m of 24.8 g/t AuEq
• 21 m of 12.3 g/t AuEq
• 9.4 m of 18.1 g/t AuEq
• 11.0 m of 14.7 g/t AuEq
• 11.4 m of 10.9 g/t AuEq
• 6.1 m of 15.3 g/t AuEq
• 15.2 m of 9.6 g/t AuEq

High-Grade Sub-Intervals

• 76 m grading 5.8 g/t AuEq, including 14.9 m at 8.9 g/t AuEq; and 9.0 m at 15.2 g/t AuEq

Priority Drill Targets for 2024

Four new priority exploration targets have been identified through a number of data analysis techniques on the Kay property-wide rock grid results:

• North Central Target
• North Target
• Northwest Target
• Southeast Target

Management

Management and Directors

Marc Pais, President and CEO, Director

B.Sc. Geological Engineering (Mineral Exploration) from Queen’s University

Founder and former President of Telegraph Gold (listed as Castle Mountain Mining, later acquired by Equinox Gold).

Seven years of experience as a Mining Analyst, with a focus on precious metals development companies.

Paul Reid, MBA, Executive Chairman

Over 20 years of experience in financing mineral exploration, development and production assets.

Founder and former Chairman of Telegraph Gold (listed as Castle Mountain Mining, later acquired by Equinox Gold).

An Investment Banking professional with extensive experience in raising capital, going-public transactions and advisory services.

David Smith, CPG, MSc., MBA, Vice President of Exploration

30 years of global precious metals exploration experience, including co-discovery of ~1M oz AuEq Solidaridad/La Sabila deposit, Mexico.

Core expertise is managing mineral projects from acquisition to exploration, resource modeling, and project development.

Katherine Arnold, Independent Director

Arizona based professional engineer and expert on strategic environmental permitting and compliance.

Former Director of Environment and VP Environmental and Regulatory Affairs for Hudbay's Rosemont Copper.

Over 17 years with Asarco in various positions spanning operations, management, and environmental engineering.

Sung Min (Eric) Myung, CPA, Chief Financial Officer

Senior Financial Analyst at Marrelli Support Services Inc.

Previously worked at public accounting firms for seven years.

Rick Vernon, B.Sc. (Geo. Sciences), MBA, Director

30 years of experience as mining finance professional.

Previously Managing Director, Head of Investment Banking at PI Financial Corp. & Stonecap Securities Inc.

Rosa Rojas Espinoza, Independent Director

Over 14 years of experience as a mining engineer working for companies such as Barrick Gold, Grupo Mexico, BHP, and Freeport-McMoRan.

BSc. and MSc. in Mining Engineering

Conor Dooley, LLB, Corporate Secretary, Director

Partner at WeirFoulds LLC in Toronto

Mike Pilmer, BA, MBA, Independent Director

Over 20 years experience in banking, media and digital content solutions. Has held several senior positions with TD Bank, Southam Inc., Hollinger Capital, The Stronach Group as well as President and CEO of LexisNexis Canada.

News Update

On September 11, 2024, Arizona Metals Corp. announced that the latest drill results from the Kay Mine Project (the "Kay Project" or the "Property") in Arizona. Fifteen new drill holes from the project, seven at the Kay Mine Deposit (the "Kay Deposit") and eight from the North Central exploration target, continue to demonstrate the expansion and exploration potential of the project. Highlights of the recent drilling include:

• Hole KM-24-153 at the North Central target returned a grade of 11.3% CuEq over 0.5 m of massive sulfide mineralization in a newly discovered mineralized horizon. This intercept occurred within an interval of 5.8 m showing anomalous Cu, Zn, and Pb. The extremely high grade of this intercept signals a strong mineralizing system in this part of the project.
• Hole KM-24-159 intersected 41.3 m grading 1.5 g/t AuEq in the Kay deposit, including 2.9 m @ 10.4 g/t AuEq. Located in the deeper central portion of the deposit, this hole showed good continuity in the deposit between previous drill holes.
• Hole KM-24-155A in the Kay deposit returned numerous intervals, among them 12.3 m @ 1.3% CuEq and 11.3 m @ 2.5% CuEq, including 3.7 m grading 4.8% CuEq. This hole confirmed considerable thickness and continuity in the central portion of the deposit.

Duncan Middlemiss, President and CEO of Arizona Metals comments: "Outstanding drill assay grades from a new horizon of massive sulfide in the North Central target point to the excellent exploration potential of the Kay Project. We are continuing to drill test this target, while also demonstrating the viability of the Kay Deposit with additional thick intercepts of good grade in support of a mineral resource estimate for the deposit."

With the completion of recent drill holes, Arizona Metals has drilled a total of 117,000 meters on the Property. The Company is well funded, with $20.6 million in cash as of June 30, 2024.

On July 24, 2024, Arizona Metals Corp. has released the latest drill results from the Kay mine project in Arizona. Seven new drill holes at the Kay mine deposit continue to demonstrate the continuity and expansion potential of the deposit, and returned excellent grades in the deeper portions of the deposit. Highlights of the recent drilling include:

• Hole KM-24-94B intersected 65.2 metres of 4.0 per cent copper equivalent, including 14.2 m of 7.3 per cent CuEq and 10.4 m of 7.0 per cent CuEq. This hole returned among the highest gold assays to date on the project, 22.3 grams per tonne gold (751.9 to 753.5 m), and among the highest copper grades to date, 13.7 per cent Cu (745.9 to 746.2 m). The hole also showed a northern continuation of outstanding mineralization previously intersected in hole KM-21-27B (97.1 m of 3.3 per cent CuEq).
• Hole KM-24-146A cut 61.1 m of 1.4 per cent CuEq, including 4.6 m of 9.4 per cent CuEq. Drilled deeper in the deposit, this hole added considerable thickness and continuity in an 85-metre gap between previous holes.
• Hole KM-24-146 returned 27.4 m of 2.5 per cent CuEq, including 3.2 m of 7.1 per cent CuEq. Placed along the deposit's deeper north edge, this hole showed excellent thickness and grade in a 73-metre gap between previous holes.

Duncan Middlemiss, president and chief executive officer of Arizona Metals, commented: "These new drill results from the Kay deposit point to its expansion potential and continue to highlight the excellent thickness and grade. Our drilling strategy will continue to focus on stepout and infill targets on the Kay deposit to complete the remaining approximately 12,000 m of our Kay deposit resource-definition drill program. Upon completion of this phase of drilling in [fourth quarter], the company will be in position to provide the Kay deposit mineral resource estimate, which we expect in [first half] of 2025."

On June 28, 2024, Arizona Metals Corp. has released the results of its annual general meeting held on June 28, 2024. At the meeting, the seven director nominees listed in the company's management information circular dated May 28, 2024, were elected as directors to serve until the close of the next annual meeting of shareholders. In addition to the election of directors, shareholders also reappointed McGovern Hurley LLP, chartered professional accountants, as auditor of the company.

On May 16, 2024, Arizona Metals Corp. has made key changes in its leadership team to steer the company into its next phase of growth. To facilitate the progression of Arizona Metals, Marc Pais (CEO) and Paul Reid (Executive Chair) made the decision to initiate an extensive search process for an experienced mine development leadership team.

Appointment of New President and CEO: The Company proudly appoints Duncan Middlemiss as President and CEO, effective immediately, succeeding Marc Pais. With a rich background in mine development and corporate leadership, Duncan brings invaluable experience from his tenure at Kirkland Lake Gold, St. Andrew Goldfields, and most recently, as CEO at Wesdome Gold Mines.

New Chair of the Board: Jacques Perron will immediately assume the role of Chair of the Board, succeeding Paul Reid. Jacques is a seasoned leader in mine development execution and strategic vision, having played pivotal roles at St. Andrew Goldfields, Thompson Creek Metals, and Pretivm Resources.

On May 06, 2024, Arizona Metals Corp. has completed the acquisition of 100 per cent of an Arizona state land parcel totalling 40 acres, located 400 metres northeast of its Kay mine property. The property was acquired from the Arizona State Land Department by way of an auction process. As part of this process, Arizona Metals commissioned independent biological and archeological studies which both demonstrated zero adverse impacts or remediation requirements. The property includes the surface and water rights, among other rights and benefits. The company has also staked unpatented lode and placer claims that secure mineral rights to this land.

Marc Pais, chief executive officer of Arizona Metals, comments: "The acquisition of the property is another significant derisking step in moving the Kay mine deposit closer to a production decision. Including the 71 acres of patented land that host our Kay mine deposit, this acquisition will increase our total holdings of private and patented land to 264 acres. The property is contiguous with and adjacent to the 153 acres of patented land (including water rights and wells) acquired up to November, 2023. The additional land we are acquiring increases the private land suitable for future mine infrastructure by 26 per cent and is in line with our vision of a minimally disruptive operation while also allowing for an expanded operational footprint.

"We believe that our Kay mine project has the potential to become one of Arizona's newest and highest-grade copper-gold-zinc-silver mines, with the main deposit and potential for all infrastructure to be located on private land. This would allow for a relatively small footprint while also providing high-paying jobs to the local community of Black Canyon City. The Kay mine project already has the benefit of being only an hour north of Phoenix, with excellent access to infrastructure, including rail, roads, water and power. The acquisition announced today will provide the potential for an expanded operation, increased flexibility in mine design and accelerated permitting timelines."

On April 18, 2024, Arizona Metals Corp. has released the latest drill results from the Kay mine project in Arizona. Eleven new drill holes at the Kay Mine Deposit (the "Kay Deposit") continue to demonstrate the continuity and expansion potential of the deposit. Three holes on the southern edge of the deposit have encountered zones of high-grade copper-rich (holes KM-24-143 and KM-24-139) and gold-rich (hole KM-24-137) mineralization that are open for expansion. Highlights of the recent drilling include:

Hole KM-24-143 intersected 20.1 m at 3.4% copper equivalent (CuEq), including 3.2 m at 14.9% CuEq, from a vertical depth of 590 m. This hole is on the southern edge of the deposit and showed excellent continuity in the 90-m gap between holes KM-21-35 (5.5 m at 2.3% CuEq) and KM-22-79 (7.9 m at 4% CuEq). Mineralization in this area is open for expansion to the south.

Hole KM-24-139 returned 38.0 m at 1.4% CuEq, including 4.4 m at 7.1% CuEq, from a vertical depth of 450 m. This hole filled in a 70-100 meter gap among previous drill holes in this area, including KM-21-50 (53.1 m at 1.5% CuEq) and KM-20-10B (27.6 m at 2.0% CuEq).

Hole KM-24-137 intersected 7.9 m at 1.4 g/t AuEq, including 0.5 m at 8.0 g/t AuEq. from a vertical depth of 360 m. This hole extended mineralization 55 m south of hole KM-20-14 (39.9 m at 2.5% CuEq) in the central portion of the deposit. Mineralization is open to the south in this area.

Marc Pais, CEO, commented, "These new drill results from the Kay Deposit continue to point to its expansion potential, with three holes encountering both high-grade copper-rich and gold-rich mineralization at the southern edge of the deposit. Future drill holes will target this area as part of the continuing Kay Mine resource definition program.

On April 10, 2024, Arizona Metals Corp.'s recently completed claim staking program at the Kay mine project in Arizona has extended the property by 300 metres to the north. This, along with additional claims staked to the southeast, has increased the total property size by 22%, from 1,330 acres to 1,625 acres.

The Company has also permitted three new dill pads (pads 8, 9, and 10 refer to Figure 1) allowing for additional testing of the northern extension of the Central Target. The drill pads also allow access to high-grade mineralization identified through rock sampling of the newly-staked claims, and extensions of mineralization identified at the Kay Deposit. These new pads were permitted under amendments to the existing Notice of Intent to Explore. The Exploration Plan of Operations has also been submitted to the Bureau of Land Management ("BLM") to allow for additional roads and pads to test new property-wide targets.

Mapping of the new claims identified an historic adit, approximately 100 feet in length. Sampling of this adit returned a number of high-grade samples of VMS mineralization, with grades including 11.7% copper, 9.1% copper, 6.7 g/t gold, and 286 g/t silver. The area of this adit can be reached from drill pad 10, and a number of target holes are currently being planned.

Marc Pais, CEO, commented, "The extension of our border by 300m to the north increases the untested strike extent north of our best hole at the Western Target (KM-23-113; 3.0m at 3.2 g/t AuEq) to more than 650 metres. Rock sampling on the new claims has also identified a number of high-grade targets which can be reached by drilling from newly-permitted pads 9 and 10. These two pads, along with the third new pad (pad 8) will also allow for drilling of the strike extent north of the Central Target, where hole KM-23-95 intersected 2.7m at 0.5% in stringer-type VMS mineralization. We are currently planning drill holes for these new targets and will provide an update on timing in the next few weeks."

March 6, 2024, Arizona Metals Intersects 25.6 m at 2.1 g/t AuEq (incl. 1.5 m at 9.0 g/t AuEq), 21.5 m at 1.8 g/t AuEq (incl. 4.1 m at 5.2 g/t AuEq), and 0.5 m at 37 g/t AuEq in Kay Shallow Drilling.

Marc Pais, CEO, commented, “These new drill results from the Kay Deposit continue to point to its expansion potential, in this case extending shallow gold-rich mineralization 32 m south of previous drilling.”

https://www.arizonametalscorp.com/_resources/news/nr-20240306.pdf

January 22, 2024, Arizona Metals Announces Proposed Spin-Out of Sugarloaf Peak Gold Project and Kay Royalties to Create Two New Companies

https://www.arizonametalscorp.com/_resources/news/nr-20240122.pdf

January 9, 2024, Arizona Metals Intercepts 65.6 m at 3.5 g/t AuEq (incl. 5.7 m at 6.6 g/t AuEq) at the Kay Mine Deposit; Western Target Deep Drilling hits 1.8 m at 1.8 g/t Au and 1.5 m at 2.1 g/t Au

https://www.arizonametalscorp.com/_resources/news/nr-20240109.pdf

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