Arizona Metals Corp. (TSX-V: AMC) is pleased to announce assay results of the first drill hole completed at the South Zone of its Kay Mine Project, located near Black Canyon City, Arizona. The Company will be hosting Webinars to discuss the drill results and future exploration plans on Tuesday, May 5^th, 2020 at 11am (Eastern time) and Tuesday, May 12^th, 2020 (Eastern time). Registration details below.

Prior to the temporary suspension of the Phase 1 drill program due to the Covid-19 pandemic, seven holes were drilled into the shallowest part of the North Zone, of which six intersected copper-gold massive sulphide mineralization (see April 15, 2020 press release, Table 2 below).

A single hole was drilled into the South Zone and intersected gold-zinc massive sulphide mineralization at a vertical depth of 575m, with the following interval reported:

KM-20-09: 6.1m grading 7.8g/t AuEq, including 4.4m grading 9.3g/t AuEq, and also including 1.1m grading 16.0g/t AuEq (Table 1).

This intersection is approximately 160m vertically above and 100m to the south of hole KM-8, drilled by Exxon Minerals in 1977, which returned a true width intersection of 10.3m at a grade of 3.9% Cu and 1.7g/t Au (6.5% CuEq). Exxon Minerals also reported significant historic intersections located approximately 150m vertically above hole KM-20-09 in the South Zone. The primary zinc mineralization observed in hole KM-20-09 is in sphalerite, with minor amounts of copper in chalcopyrite (Figure 2).

Table 1. 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 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 gold equivalence: AuEq = Gold (g/t) + (Copper (%) x 94.72) + (Silver (g/t) x 0.009) + (Zinc (%) x 35.73) +(Lead (%) x 31.99).

Historic data by Exxon Minerals and previous operators showed gold and zinc increasing at depth and to the south, with copper decreasing. Exxon Minerals also reported that, “isoclinal folding of the massive sulphide horizon at Kay Mine could have resulted in the formation of a number of en-echelon cigar-shaped massive sulphide boudins with the longest axes parallel to the plunge of the fold axes. The North and South Mineralized Zone could represent two of these lenses, but several more may occur to the south along strike of the Kay Mine horizon” (Westra, 1977).

Figure 1: Section looking northeast at the Kay Mine Project, Yavapai County, Arizona. See Tables 1 and 2 for constituent elements and grades of CuEq% and AuEq g/t. Exxon hole K8 is comprised of 3.9% Cu and 1.7g/t Au.

Marc Pais, CEO, commented, “Hole KM-20-09 intersected massive sulphide mineralization farther south than any of the historic surface drill holes reported by Exxon Minerals. In this hole we have observed a change from the copper-gold massive sulphide mineralization encountered in the North Zone drilling, to gold-zinc massive sulphide mineralization. We are incorporating this data into our 3D wireframe model, with the aim of adding drill targets to the Phase 1 program that will test the extent of this gold-zinc zone. To date we have drilled only the shallowest part of the North Zone and one portion of the South Zone. We look forward to continued testing of the extents of mineralization on strike and at depth, as soon as it is safe to resume drilling.”

Figure 2: Hole KM-20-09, from 2079′ to 2088′ down-hole. The interval displayed above is part of a longer interval of 4.4m grading 5.5g/t gold and 9.1% zinc. This image is of a selected interval and is not representative of mineralization hosted on the property.

Summary of North Zone Drill Results (for detail, see April 15, 2020 press release):

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 50m in the North Zone, to a vertical depth between 120-170m. Historic underground exploration by Exxon Minerals reported mineralization at depths in the North Zone of up to 300m below recent drilling by Arizona Metals.

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

KM-20-03: 2.7m grading 5.41% CuEq (incl. 0.9m of 10.32% CuEq), from a depth of 120m

KM-20-03A: 4.6m grading 6.85% CuEq (incl. 0.8m of 18.19% CuEq) from a depth of 122m

KM-20-05: 2.4m grading 9.19% CuEq (incl. 1.2m of 13.89% CuEq) from a depth of 150m

KM-20-06: 13.5m grading 2.92% CuEq (incl. 4.9m of 4.54% CuEq) from a depth of 158m

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).

Figure 3: Hole KM-20-03 at depth of 256m downhole, grading 7.4% Cu, 1.8g/t Au, 56g/t Ag, and 1.1% Zn. This image is of a selected interval and is not representative of mineralization hosted on the property.

Sugarloaf Peak Project Update

Arizona Metals 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 0.5g/t (Dausinger, 1983, Westworld Resources). 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 compliant with current NI 43-101 standards. 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 Company has submitted an application for 10,000m drill program at Sugarloaf, comprised of core and RC holes, intended to upgrade the historic resource to a current mineral resource, and also test the strike extensions. Final permit receipt is expected in Q2’2020. The Company also intends to undertake a metallurgical testing program, comprised of bottle-roll and column leach recovery tests.

On March 19^th 2020, the Company announced the temporary suspension of the Kay Mine drill program in order to protect the safety of employees, contractors and the local community in response to the COVID-19 pandemic. No cases of infection have been reported in any of the Company’s employees or contractors. Arizona Metals’ employees and contractors will be ready to resume operations as soon as local conditions are deemed safe.

The Company has a strong cash position of approximately $3M, and will now focus efforts on modelling drill data received to date in order to refine planned targets for the resumption of drilling.

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, 2.8g/t gold, 3.03% zinc, and 55g/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 150m to at least 900m. 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 0.5g/t (Dausinger, 1983, Westworld Resources).

The 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.