Arizona Metals Corp Announces That Kay Mine Drilling in South Zone Fold Hinge Intersects 43.1 m of 3.9% CuEq,

(incl. 15.2 m of 6.7% CuEq), and 27.6 m of 2.9% CuEq (incl. 3.5 m of 6.7% CuEq).

Drilling in a Recently Defined Gold-zinc Lens Intersects 6.8 m of 7.3 g/t AuEq (incl. 4.3 m of 10.1 g/t AuEq as Well as 0.8 m of 27.6 g/t AuEq)

Arizona Metals Corp. (TSX.V:AMC) (the “Company” or “Arizona Metals”) is pleased to announce that all four recently completed holes at its Kay Mine project in Yavapai County, Arizona, intersected massive sulphide mineralization, including 15.2 m of 6.7% CuEq in hole KM-20-13 and 6.8 m of 7.3 g/t AuEq in hole KM-20-10C.

https://www.businesswire.com/news/home/20200805005683/en/
Figure 1. Section view looking North. Drill hole KM-20-13 in the South Zone intersected 43.1 m of 3.9% CuEq, including 15.2 m of 6.7% CuEq interpreted as a potential fold hinge, and hole KM-20-10C intersected 6.8 m of 7.3 g/t AuEq, including 4.3 m of 10.1 g/t AuEq. The yellow dotted line marks a potential new zone of Au-rich Zn lenses. See Table 3 for constituent elements and grades of CuEq% and AuEq g/t. (Graphic: Business Wire)

In the South Zone, hole KM-20-13 intersected a broad interval of 43.1 m at a grade of 3.9% CuEq, including 15.2 m grading 6.7% CuEq, located at a vertical depth of 341 m.

Branch hole KM-20-10B, located 50 m below KM-20-13, intersected 27.6 m grading 2.9% CuEq, including 3.5 m at a grade of 6.7% CuEq, 4.4 m of 5.3% CuEq, and 6.6 m at 4.8% CuEq.

Branch hole KM-20-10C intersected an interval of 6.8 m at a grade of 7.3 g/t AuEq, including 4.3 m grading 10.1 g/t AuEq, as well as 0.8 m of 27.6 g/t AuEq. This hole is located at the edge of the southern boundary of the historic estimate by Exxon Mineral (1982), in a newly-defined gold-zinc-rich lens. It is located approximately 150 m up-dip from hole KM-20-09, which in March 2020 intersected 6.1 m at a grade of 7.8 g/t AuEq (including 4.4 m at 9.3 g/t AuEq as well as 1.1 m grading 16.0 g/t AuEq).

In the North Zone, hole KM-20-12 intersected an interval of 4.9 m at a grade of 4.8% CuEq, including 1.9 m grading 10.1% CuEq, from a vertical depth of 318 m. Approximately 5.8 m farther downhole from this massive sulphide intersection, hole KM-20-12 also intersected 25.9 m at a grade of 0.9% CuEq.

Holes KM-20-14 and KM-20-15 have been completed and submitted to ALS Laboratories of Tucson, Arizona for assaying. Holes KM-20-14A and KM-20-16 have been completed and are being sampled for submittal to ALS Laboratories.

Marc Pais, CEO, commented “Of the 20 holes drilled at the Kay Mine to date, 18 have intersected massive sulphide mineralization. Because previous operators reported significantly better widths and grades in the fold hinges, the initial focus of the Kay Mine Phase 1 drilling in both the North and South Zones has been to locate the fold hinges of the mineralized lenses. We have successfully done that, as shown by the thick intercept in hole KM-20-13 in the South Zone of 43.1 m grading 3.9% CuEq, including 15.2 m grading 6.7% CuEq.

In hole KM-20-12 in the North Zone, we encountered a broad intersection (25.9 m) of lower-grade mineralization (0.87% CuEq) just below 4.9 m of higher grade (4.8% CuEq) massive sulphide mineralization. We see this as an indication that we could be approaching a fold hinge in the North Zone as well.

Earlier this week we started a downhole electromagnetic testing program, in order to better define new targets for extension of the hinges. The geophysical results will be used in conjunction with today’s results, and the four holes currently at the lab, to plan new holes.

Now that we have located a hinge of significant thickness in the South Zone, we will begin planning a Phase 2 drill program to further define that hinge up- and down-plunge. Branch hole KM-20-10C has extended the gold-rich zinc lens, located outside of Exxon’s historic estimate, by 150 m up-dip from hole KM-20-09, which intersected similar grades and width. We see excellent potential to extend this zone both up-dip and down-dip, and also further to the south. Hole KM-20-15 is located 30 m south of KM-20-10C and was drilled to test the strike extension of the gold-rich zinc lens. This hole is currently at the lab being assayed.”

Kay Mine Downhole Electromagnetic Survey

On August 3, 2020, Zonge International of Tucson, Arizona, commenced a downhole electromagnetic survey of seven recently completed Kay Mine drill holes, including KM-20-10C, KM-20-11, KM-20-12, KM-20-13, KM-20-14A, KM-20-15, and KM-20-16. This geophysical survey is intended to identify the extensions of underground massive sulphide mineralization. The combined results of the drill hole assays and the downhole surveys will be used to design a Phase 2 drill program at the Kay Mine.

Table 1. Locations of Phase 1 Program drill holes completed and in progress at Kay Mine, Arizona

Covid-19 Monitoring and Mitigation Procedures

The Company’s drill contractor, Boart Longyear, has instituted Covid-19 monitoring procedures for all drill crew members, including daily temperature and symptom checks. Arizona Metals Corp. will be provided with daily health tracking updates for the drill crews and has also instituted its own social distancing policies and provided a guidance manual for employees at site.

Summary of North Zone Drill Results:

Holes KM-20-01 through KM-20-06 all intersected massive sulphide mineralization. Hole KM-20-07 did not intersect significant mineralization and is believed to have passed between the North and South Zones. Arizona Metals’ drilling tested a vertical extent of approximately 50 m in the North Zone, to a vertical depth between 120-170 m. Historic underground exploration by Exxon Minerals reported mineralization at depths in the North Zone of up to 300 m below recent drilling by Arizona Metals.

Highlights of the first eight holes in the North Zone include:

KM-20-03: 2.7 m grading 5.4% CuEq (incl. 0.9 m of 10.3% CuEq), from a depth of 120 m

KM-20-03A: 4.6 m grading 6.9% CuEq (incl. 0.8 m of 18.2% CuEq) from a depth of 122 m

KM-20-05: 2.4 m grading 9.2% CuEq (incl. 1.2 m of 13.9% CuEq) from a depth of 150 m

KM-20-06: 13.5 m grading 2.9% CuEq (incl. 4.9 m of 4.5% CuEq) from a depth of 158 m

KM-20-11: 2.7 m grading 9.2% CuEq from a depth of 490 m

KM-20-12: 4.9 m grading 4.8% CuEq (incl. 1.9 m of 10.1% CuEq) from a depth of 318 m

KM-20-12: 25.9 m grading 0.9% CuEq, from a depth of 326 m

Table 2. Results of Initial Drill Program at Kay Mine North Zone, Yavapai County, Arizona

_{(1) True widths of the reported mineral intervals have not been determined; additional drilling is required.
(2) Assumptions used in USD for the copper equivalent calculation were metal prices of $2.28/lb Copper, $1650/oz Gold, $15/oz Silver, $0.86/lb Zinc, $0.77/lb Pb and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Gold (g/t) x 1.06) + (Silver (g/t) x 0.0096) + (Zinc (%) x 0.3772) +(Lead (%) x 0.3377).}

Summary of South Zone Drill Results:

Below are highlights of drilling to date in the South Zone:

KM-20-09: 6.1 m grading 7.8 g/t AuEq, including 4.4 m grading 9.3 g/t AuEq, and also including 1.1 m grading 16.0 g/t AuEq, from a depth of 575 m

KM-20-10A: 10.7 m grading 4.4% CuEq, including 1.5 m grading 8.6% CuEq, 3.1 m grading 4.2% CuEq, and 1.4 m grading 12.2% CuEq from a depth of 442 m

KM-20-10B: 27.6 m grading 2.9% CuEq, including 6.6 m at 4.8% CuEq, 4.4 m grading 5.3% CuEq, and 3.5 m grading 6.7% CuEq from a depth of 423 m

KM-20-10C: 6.8 m grading 7.3 g/t AuEq, including 4.3 m grading 10.1 g/t AuEq, and 0.8 m grading 27.6 g/t AuEq from a depth of 422 m

KM-20-13: 43.1 m grading 3.9% CuEq, including 15.2 m grading 6.7% CuEq and 4.4 m grading 10.3% CuEq from a depth 341 m

Table 3. Results of Initial Drill Program at Kay Mine South Zone, Yavapai County, Arizona

_{(1) True widths of the reported mineral intervals have not been determined; additional drilling is required
(2) Assumptions used in USD for the gold equivalent calculations were metal prices of $2.28/lb Copper, $1650/oz Gold, $15/oz Silver, $0.86/lb Zinc, $0.77/lb Pb and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate gold equivalence: AuEq = Gold (g/t) + (Copper (%) x 94.72) + (Silver (g/t) x 0.009) + (Zinc (%) x 35.73) +(Lead (%) x 31.99).
(3) Assumptions used in USD for the copper equivalent calculations were metal prices of $2.28/lb Copper, $1650/oz Gold, $16/oz Silver, $0.86/lb Zinc, $0.77/lb Pb and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate copper equivalence fo: CuEq = Copper (%) + (Gold (g/t) x 1.06) + (Silver (g/t) x 0.0096) + (Zinc (%) x 0.3772) +(Lead (%) x 0.3377).}

Sugarloaf Peak Project Update

On July 6^th, 2020, Arizona Metals commenced a Phase 1 drill program at its Sugarloaf Peak Project in La Paz County, Arizona. Drill core from this program will be sent to Kappes Cassiday and Associates of Reno, Nevada, to undergo bottle-roll and column testing of gold recoveries by leaching of oxide material. Samples will also be sent to ALS Minerals in Reno, Nevada for gold assay, multi-element testing, and spectral analysis to determine trace-element levels and hydrothermal alteration variations.

The Phase 1 program, comprised of four drill holes, has been completed. The program was originally planned to total 1,300 m but was increased to 1,700 m. Two cored drill holes were extended to depths of approximately 550 m each to test a large geophysical target that the Company believes has the potential to host a higher grade “feeder” zone, that could be the source of the disseminated oxide mineralization identified by previous operators. The holes are currently being logged and will be submitted to the lab for assay during the month of August.

About Arizona Metals Corp

Arizona Metals Corp. owns 100% of the Kay Mine Property in Yavapai County, which is located on a combination of patented and BLM claims totaling 1,300 acres that are not subject to any royalties. An historic estimate by Exxon Minerals in 1982 reported a “proven and probable reserve of 6.4 million short tons at a grade of 2.2% copper, 2.8 g/t gold, 3.03% zinc, and 55 g/t silver.” The historic estimate at the Kay Mine was reported by Exxon Minerals in 1982. The historic estimate has not been verified as a current mineral resource. None of the key assumptions, parameters, and methods used to prepare the historic estimate were reported, and no resource categories were used. Significant data compilation, re-drilling and data verification may be required by a Qualified Person before the historic estimate can be verified and upgraded to be a current mineral resource. A Qualified Person has not done sufficient work to classify it as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral resource.

The Kay Mine is a steeply dipping VMS deposit that has been defined from a depth of 60 m to at least 900 m. It is open for expansion on strike and at depth.

The Company also owns 100% of the Sugarloaf Peak Property, in La Paz County, which is located on 4,400 acres of BLM claims. Sugarloaf is a heap-leach, open-pit target and has a historic estimate of “100 million tons containing 1.5 million ounces gold” at a grade of 0.5 g/t (Dausinger, 1983, Westworld Resources).

¹The historic estimate at the Sugarloaf Peak Property was reported by Westworld Resources in 1983. The historic estimate has not been verified as a current mineral resource. None of the key assumptions, parameters, and methods used to prepare the historic estimate were reported, and no resource categories were used. Significant data compilation, re-drilling and data verification may be required by a Qualified Person before the historic estimate can be verified and upgraded to a current mineral resource. A Qualified Person has not done sufficient work to classify it as a current mineral resource, and Arizona Metals is not treating the historic estimate as a current mineral resource.

The Qualified Person who reviewed and approved the technical disclosure in this release is David Smith, CPG.

Quality Assurance/Quality Control

All of Arizona Metals’ drill sample assay results have been independently monitored through a quality assurance/quality control (“QA/QC”) protocol which includes the insertion of blind standard reference materials and blanks at regular intervals. Logging and sampling were completed at Arizona Metals’ core handling facilities located in Anthem and Black Canyon City, Arizona. Drill core was diamond sawn on site and half drill-core samples were securely transported to ALS Laboratories’ (“ALS”) sample preparation facility in Tucson, Arizona. Sample pulps were sent to ALS’s labs in Vancouver, Canada, for analysis.

Gold content was determined by fire assay of a 30-gram charge with ICP finish (ALS method Au-AA23). Silver and 32 other elements were analyzed by ICP methods with four-acid digestion (ALS method ME-ICP61a). Over-limit samples for Au, Ag, Cu, and Zn were determined by ore-grade analyses Au-GRA21, Ag-OG62, Cu-OG62, and Zn-OG62, respectively.

ALS Laboratories is independent of Arizona Metals Corp. and its Vancouver facility is ISO 17025 accredited. ALS also performed its own internal QA/QC procedures to assure the accuracy and integrity of results. Parameters for ALS’ internal and Arizona Metals’ external blind quality control samples were acceptable for the samples analyzed. Arizona Metals is not aware of any drilling, sampling, recovery, or other factors that could materially affect the accuracy or reliability of the data referred to herein.

This press release contains statements that constitute “forward-looking information” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation, All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements contained in this press release include, without limitation, statements regarding the resumption of drilling and the effects of the COVID-19 pandemic on the business and operations of the Company. In making the forward- looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: availability of financing; delay or failure to receive required permits or regulatory approvals; and general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward- looking statements or otherwise.

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Contact

Marc Pais, President and CEO Arizona Metals Corp.
(416) 565-7689
mpais@arizonametalscorp.com
www.arizonametalscorp.com
https://twitter.com/ArizonaCorp