Mr. Jim Gowans reports
ARIZONA MINING ANNOUNCES NEW MINERAL RESOURCE AT TAYLOR DEPOSIT
Arizona Mining Inc. has provided a mineral resource update for the Taylor zinc-lead-silver sulphide deposit located on its 100-per-cent-owned Hermosa project in Arizona. The deposit now comprises 31.1 million tonnes in the indicated mineral resource category grading 10.9 per cent zinc equivalent (ZnEq), plus 82.7 million tonnes of inferred mineral resource grading 11.1 per cent ZnEq, both reported in accordance with National Instrument 43-101 guidelines using a 4-per-cent ZnEq cut-off grade.
Chief executive officer Jim Gowans commented: "Based on work to date, this updated mineral resource estimate indicates that the Taylor deposit has expanded substantially and continues to be one of the best quality growth stories in the mining sector. In addition, should the technical feasibility and economic viability of the project be established, continued metallurgical testing indicates the deposit will produce clean, saleable concentrates with no deleterious elements."
TAYLOR DEPOSIT INDICATED AND INFERRED MINERAL RESOURCES
INDICATED MINERAL RESOURCE
Cut-off Short tons ZnEq Zn Pb Cu Ag
ZnEq (%) (%) (%) (%) (%) (ounces/ton)
25 1,775,000 32.8 13.4 12.8 0.4 6.6
20 3,640,000 27.2 11.4 10.8 0.3 5.0
15 6,499,000 22.7 9.8 9.0 0.3 4.0
10 12,303,000 17.8 7.7 7.1 0.2 3.0
6 22,280,000 13.3 5.8 5.3 0.2 2.2
5 26,265,000 12.1 5.2 4.8 0.1 2.0
4 31,143,000 10.9 4.7 4.4 0.1 1.8
3 38,571,000 9.5 4.1 3.8 0.1 1.6
0 185,918,000 2.4 1.0 0.9 0.0 0.4
INFERRED MINERAL RESOURCE
Cut-off Short tons ZnEq Zn Pb Cu Ag
ZnEq (%) (%) (%) (%) (%) (ounces/ton)
25 5,231,000 36.1 16.4 13.7 0.4 6.1
20 8,399,000 30.9 13.4 12.1 0.4 5.4
15 15,713,000 24.4 9.9 10.0 0.3 4.5
10 32,203,000 18.2 7.1 7.6 0.2 3.6
6 61,112,000 13.3 5.1 5.6 0.2 2.6
5 71,222,000 12.2 4.6 5.1 0.2 2.4
4 82,748,000 11.1 4.2 4.7 0.2 2.2
3 98,671,000 9.9 3.7 4.1 0.1 2.0
0 749,354,000 1.6 0.6 0.6 0.0 0.3
Chief operating officer Don Taylor added: "Infill drilling has highlighted high-grade zones within the resource, which is also showing excellent continuity that should enable bulk mining methods. What is not evident from the results is that the resource remains open for expansion to the north, west and south over mineral rights controlled by the company. In addition to the zinc-lead-silver mineralization, other target types have been identified on the mineral holdings and will be drill tested in the coming months."
The resource is based on assay results from 59 surface diamond drill holes totalling 206,192 feet (62,863 metres) of drilling, which have all intersected stratabound carbonate replacement sulphide mineralization within the Taylor deposit. The updated mineral resource estimate was prepared by AMC Mining Consultants (Canada) Ltd. (AMC) of Vancouver, B.C.
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, 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.
Estimation parameters
The Taylor deposit mineral resource update was carried out using ordinary kriging of drill core sample data that was composited to 10 feet in length. The compositing process honoured lithological domain boundaries. Tonnages and grades of lead, zinc and silver were estimated for seven separate lithological domains. In all cases, boundaries between domains were treated as hard, meaning that grades from adjacent domains were not used to influence the estimation of grades within a given domain.
Because of the sparsity of bulk density data, a formula using the analyzed abundances of zinc, lead and copper was used. This formula produces bulk density values within approximately 10 per cent of a set of 30 samples of various grades of mineralization for which bulk density measurements were made.
Top-cut analysis was carried out using log-cumulative probability plots for all metals. Only silver was determined to require capping and was capped at 42 ounces per short ton.
Variographic analysis was carried out for lead, zinc, silver and copper assay grades, and the variograms were employed in the kriging estimation. Search ellipses were constructed for each domain and honoured the attitude of mineralization within each domain. Most search ellipses were 600 feet long in the strike direction, 300 feet wide in the cross-strike direction and 100 feet high (vertical direction). Several domains were estimated using ellipses with a vertical height of 50 feet because of the restricted nature of the mineralization in those domains.
Grades were estimated in a single pass. For a grade to be interpolated into a block, it was necessary that a minimum of four composites were located within the search ellipse. A maximum of two composites per hole was allowed to ensure that at a minimum, each block was informed by composites from at least two drill holes. A maximum of 10 composites, representing five drill holes, was allowed.
Blocks were classified as an indicated or inferred mineral resource. For a block to be classified as indicated, it was necessary that a minimum of eight and a maximum of 10 composites were located within 300 feet of the block centroid. For a block to be classified as inferred, it was necessary that a minimum of four and a maximum of 10 composites were located within 600 feet of a block centroid. No blocks were classified as measured resources as at present; mineralization has not been exposed by underground openings, a circumstance that would be necessary to provide sufficient evidence of continuity to warrant that classification.
Estimation results
The mineral resource has been stated in terms of ZnEq. The underlying parameters used in calculating ZnEq are set out in the attached table. Although the grade of copper was estimated, it was not used as a component of the ZnEq formula because of its relatively low abundance and uncertain mineral processing route.
ZINC-EQUIVALENT PARAMETERS
Metal Price (U.S. dollars) Recovery (%)
Lead $0.90/pound 95
Zinc $0.95/pound 90
Silver $20.00/ounce 85
The mineral resources shown in the attached tables are summarized at a range of ZnEq cut-off grades. Grades have been rounded to the nearest 0.1 per cent for lead and zinc and the nearest 0.1 ounce per ton for silver. Tons have been rounded to the nearest thousand.
Qualified person
The qualified person for the mineral resource estimate is G.Z. Mosher, PGeo, an associate of AMC. The mineral resource estimate has been prepared under the guidelines of National Instrument 43-101 for reporting of mineral resources.
Assays and quality assurance/quality control
To ensure reliable sample results, the company has a rigorous quality assurance/quality control program in place that monitors the chain of custody of samples and includes the insertion of blanks, duplicates and certified reference standards at statistically derived intervals within each batch of samples. Core is photographed and split in half, with one-half retained in a secured facility for verification purposes.
Sample preparation (crushing and pulverizing) has been performed at ALS Minerals Laboratories, an ISO/IEC-accredited lab located in Tucson, Ariz. ALS prepares a pulp of all samples and sends the pulps to its analytical laboratory in Vancouver, B.C., for analysis. ALS analyzes the pulp sample by ICP following a four-acid digestion (ME-ICP61 for 33 elements), including copper, lead and zinc. All samples in which copper, lead or zinc are greater than 10,000 parts per million are rerun using four-acid digestion with an ICP-AES finish, with the elements reported in percentage. Silver values are determined by ICP (ME-ICP61), with all samples with silver values greater than 100 parts per million repeated using four-acid digestion with an ICP-AES finish calibrated for higher levels of silver contained. Any values over 1,500 parts per million silver trigger a fire assay with gravimetric finish analysis. Gold values are determined by a 30-gram fire assay with an ICP-AES finish.
About Arizona Mining Inc.
Arizona Mining is focused on the exploration and development of its 100-per-cent-owned Hermosa project, located in Santa Cruz county, Arizona. The Taylor deposit, a lead-zinc-silver carbonate replacement deposit, remains open to the north, west and south over land controlled by the company, and will be aggressively drilled to test the limits of the resource. The company's other project on the Hermosa property is the Central deposit, a silver-manganese manto oxide development project that has a prefeasibility study, which was released in December, 2013.
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