Arizona Metals Corp. (TSX:AMC) (OTCQX:AZMCF) is pleased to announce that step-out drilling located 300 metres north and on strike of its Kay Mine Deposit has intersected a new zone of copper-gold VMS mineralization, at depths ranging from 150 to 600 metres vertically below surface. The new zone is open in all directions, with drilling currently underway to test for extensions and thickening of the mineralization encountered to date.

The Company is also pleased to report six additional holes from the Kay Mine Deposit, including three infill and three extensional holes.

The Company is fully-funded (with $58 million in cash at Sept 30, 2022) to complete the remaining 8,500 meters planned for the Phase 2 program at Kay Mine Deposit (budgeted at $3.6 million), as well as an additional 76,000 meters in the Phase 3 program (budgeted at $32 million), which will be used to test the numerous parallel targets heading west of the Kay Mine Deposit, as well as possible northern and southern extensions.

Drilling Highlights

• North Strike Extensional Drilling: Hole KM-22-93 intersected four separate intervals of VMS mineralization over a vertical extent of approximately 140 m (from 470 m to 610 m vertically below surface), including 4.5 m at a grade of 1.8% CuEq, 2.0 m grading 1.5% CuEq, 4.6 m grading 0.8% CuEq, and 1.2 m grading 2.7% CuEq. This hole is approximately 300 m below hole KM-22-30, which intersected 3.0 m grading 1.1% CuEq, and 400 m below KM-22-33, which intersected 1.2 m grading 4.2% CuEq. (See Table 1, below for constituent elements, grades, metals prices and recovery assumptions used for CuEq % calculations. Analyzed Metal Equivalent calculations are reported for illustrative purposes only). Mineralization is open in all directions around these intercepts. This hole extends the strike of mineralization approximately 300 m from the northernmost Kay Mine Deposit drill intercept.
• Kay Mine Deposit Drilling: KM-22-81B intersected 3.8 m grading 10.7% CuEq from 750 m. This is a step-out hole to the south, which extended mineralization about 50 m south of hole KM-21-52A along the southern edge of the Kay Mine Deposit.

Marc Pais, CEO, commented “The drill results reported today, located 300 metres north of the Kay Mine Deposit, confirm our opinion that the Kay Mine Deposit is potentially part of a much larger mineralized system, typical of what is encountered in other VMS camps around the world. We expect that infill and extensional drilling at the Kay Mine Deposit will continue to expand and improve confidence in its size potential.

Initial testing around the Central Target, from pad 7 has also encountered some encouraging results, with numerous markers typically associated with VMS deposits. These include thick zones of graphite mineralization interbedded with anomalous levels of pathfinder elements, particularly zinc. Drilling will continue at the Central Target, from pads C1 and C2, which we believe are better positioned to test the anomaly, using the results reported today as vectors in seeking additional VMS mineralization.

Road construction is well underway to reach drill locations that will test the Western Target, located 1,200 m west of the Kay Mine Deposit, with drilling expected to commence here in Q1’2023. Work will continue at the Kay Mine Deposit to define an initial resource, in conjunction with associated hydrological, rock geochemistry, metallurgical, and specific gravity studies, but we anticipate that over the next 18 months approximately 90% of our budget will go towards exploration south, north, and west of the Kay Mine Deposit.”

Drilling Details—Kay Mine Deposit

Recent drilling at the Kay Mine Deposit has focused mainly on step-out holes to probe the extent of mineralization.

• KM-22-81B intersected 3.8 m grading 10.7% CuEq (incl. 1.5m grading 14.8% CuEq) from 750 m and three other thinner intercepts below. This is a step-out hole to the south, which extended mineralization about 50 m south of hole KM-21-52A along the southern edge of the deposit.
• KM-22-81C returned four intervals, the best of which graded 3.2 m @ 1.6% CuEq and 8.1 m @ 0.8% CuEq. These occur within a larger 49.5-m-thick mineralized envelope grading 0.35% CuEq. This hole extended mineralization about 30 m south of hole 52 on the south edge of the deposit. Mineralization is open to the south of hole 81C.
• KM-22-86A intersected three intervals, including 1.1 m @ 0.67% CuEq. This step-out hole extended mineralization 40 m south of hole 10C along the shallow southern edge of the deposit. Hole 86A was a branch hole drilled to extend hole 86, which was lost when it intersected historic mine workings.

Drilling Details—Kay North Strike Extension

Drilling along strike of the Kay Mine Deposit has extended the mineralized horizon approximately 300 m to the north.

• KM-22-82: results from additional sampling returned 2.4 m @ 1.3% CuEq, extending mineralization approximately 75 m north of hole KM-20-03 in the North Zone of the Kay Mine Deposit.
• KM-22-87 intersected 8.2 m @ 0.5% CuEq, including 0.6 m @ 1.8% CuEq and extended mineralization approximately 100 m north of hole KM-20-03 on the north edge of the Kay Mine Deposit.
• KM-22-88 hosted 0.9 m @ 2.7% CuEq, which demonstrates continuity of mineralization within the 100 m north step-out achieved by hole 87.
• KM-22-89 intersected 1.4 m @ 1.2% CuEq; this locates the Kay Mine Deposit mineralized horizon about 100 m north of hole 19, and demonstrates depth potential in this area at a vertical depth of approximately 390 m below surface.
• Hole KM-22-93 intersected four separate intervals of VMS mineralization over a vertical extent of approximately 140 m (from 470 m to 610 m vertically below surface), including 4.5 m at a grade of 1.8% CuEq, 2.0 m grading 1.5% CuEq, 4.6 m grading 0.8% CuEq, and 1.2 m grading 2.7% CuEq. This hole is approximately 300 m below hole KM-21-30, which intersected 3.0 m grading 1.1% CuEq, and 400 m below KM-21-33, which intersected 1.2 m grading 4.2% CuEq. Mineralization is open in all directions around these intercepts. This hole extends the strike of mineralization approximately 300 m from the northernmost Kay Mine Deposit drill intercept, and points to depth potential along the north strike extension.

Kay Mine Project Phase 2 Drill Program Update

With the assayed holes released today, the Company has completed a total of 74,800 meters at the Kay Mine Project since inception of drilling. The Company is fully-funded to complete the remaining 8,500 meters planned for the Phase 2 program with the priority focus areas for upcoming drilling (shown in Figure 1 above) as well as an additional 76,000 meters in the upcoming Phase 3 program (Figures 3 and 4 below).

Kay Mine Project Phase 3 Drill Program Update – Moving to Central and Western Targets

The Phase 3 drill program will test the numerous parallel targets heading west of the Kay Mine Deposit, as well as the possible northern and southern extensions. The road to the Central Target (located 300 m west of the Kay Mine Deposit) is complete, and drilling at the Central Target pads commenced during November 2022.

A total of six holes were drilled to the west from pad 7 (see Figure 3), but due to the westerly dip of the stratigraphy and the Central Target EM anomaly, these holes did not fully test the Central Target. Results from these six holes, along with updated structural mapping and ground-loop EM geophysics, will be used to refine the drill targeting from pads C1 and C2. The location of these pads will provide much better angles to intersect the core of the Central Target, while also testing for its extensions north and south along strike of the mafic-felsic contact that potentially hosts mineralization.

Permitting is complete for drill pads at the Western Target (W1 and W2, located ~1,000 m west of the Kay Mine Deposit), with road construction approximately half completed, and drilling anticipated to start in Q1’23.

Table 1. Results of Phase 2 Drill Program at the Kay Mine Project, Yavapai County, Arizona announced in this news release.

The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 76%. (2) Assumptions used in USD for the copper and gold Metal Equivalent calculations were metal prices of $4.63/lb Copper, $1937/oz Gold, $25/oz Silver, $1.78/lb Zinc, and $1.02/lb Pb. Assumed metal recoveries (rec.), based on a preliminary review of historic data by SRK and ProcessIQ¹, were 93% for copper, 92% for zinc, 90% for lead, 72% silver, and 70% for gold. The following equation was used to calculate copper equivalence: CuEq = Copper (%) (93% rec.) + (Gold (g/t) x 0.61)(72% rec.) + (Silver (g/t) x 0.0079)(72% rec.) + (Zinc (%) x 0.3844)(93% rec.) +(Lead (%) x 0.2203)(93% rec.). The following equation was used to calculate gold equivalence: AuEq = Gold (g/t)(72% rec.) + (Copper (%) x 1.638)(93% rec.) + (Silver (g/t) x 0.01291)(72% rec.) + (Zinc (%) x 0.6299)(93% rec.) +(Lead (%) x 0.3609)(93% rec.). Analyzed Metal Equivalent calculations are reported for illustrative purposes only. The metal chosen for reporting on an equivalent basis is the one that contributes the most dollar value after accounting for assumed recoveries.

Table 2. Full results of Phase 2 Drill Program at the Kay Mine Deposit, Yavapai County, Arizona.

The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 76%. (2) Assumptions used in USD for the copper and gold Metal Equivalent calculations were metal prices of $4.63/lb Copper, $1937/oz Gold, $25/oz Silver, $1.78/lb Zinc, and $1.02/lb Pb. Assumed metal recoveries (rec.), based on a preliminary review of historic data by SRK and ProcessIQ², were 93% for copper, 92% for zinc, 90% for lead, 72% silver, and 70% for gold. The following equation was used to calculate copper equivalence: CuEq = Copper (%) (93% rec.) + (Gold (g/t) x 0.61)(72% rec.) + (Silver (g/t) x 0.0079)(72% rec.) + (Zinc (%) x 0.3844)(93% rec.) +(Lead (%) x 0.2203)(93% rec.). The following equation was used to calculate gold equivalence: AuEq = Gold (g/t)(72% rec.) + (Copper (%) x 1.638)(93% rec.) + (Silver (g/t) x 0.01291)(72% rec.) + (Zinc (%) x 0.6299)(93% rec.) +(Lead (%) x 0.3609)(93% rec.). Analyzed Metal Equivalent calculations are reported for illustrative purposes only. The metal chosen for reporting on an equivalent basis is the one that contributes the most dollar value after accounting for assumed recoveries.

Table 3. Full results of Phase 2 Drill Program at the Kay Mine Deposit, Yavapai County, Arizona.

The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 76%. (2) Assumptions used in USD for the copper and gold Metal Equivalent calculations were metal prices of $4.63/lb Copper, $1937/oz Gold, $25/oz Silver, $1.78/lb Zinc, and $1.02/lb Pb. Assumed metal recoveries (rec.), based on a preliminary review of historic data by SRK and ProcessIQ³, were 93% for copper, 92% for zinc, 90% for lead, 72% silver, and 70% for gold. The following equation was used to calculate copper equivalence: CuEq = Copper (%) (93% rec.) + (Gold (g/t) x 0.61)(72% rec.) + (Silver (g/t) x 0.0079)(72% rec.) + (Zinc (%) x 0.3844)(93% rec.) +(Lead (%) x 0.2203)(93% rec.). The following equation was used to calculate gold equivalence: AuEq = Gold (g/t)(72% rec.) + (Copper (%) x 1.638)(93% rec.) + (Silver (g/t) x 0.01291)(72% rec.) + (Zinc (%) x 0.6299)(93% rec.) +(Lead (%) x 0.3609)(93% rec.). Analyzed Metal Equivalent calculations are reported for illustrative purposes only. The metal chosen for reporting on an equivalent basis is the one that contributes the most dollar value after accounting for assumed recoveries.

Table 4. Results of Phase 1 Drill Program at the Kay Mine Deposit, Yavapai County, Arizona. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 80%.

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 regular temperature and symptom checks. Arizona Metals Corp will be provided with 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.

About Arizona Metals Corp

Arizona Metals Corp owns 100% of the Kay Mine Project 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.” (Fellows, M.L., 1982, Kay Mine massive sulfide deposit: Internal report prepared for Exxon Minerals Company, November 1982, 29 p.) The historic estimate at the Kay Mine Deposit 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” (as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) 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 Deposit 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).

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.

Qualified Person and Quality Assurance/Quality Control

All of Arizona Metals’ drill sample assay results have been independently monitored through a quality assurance/quality control 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.

The qualified person who reviewed and approved the technical disclosure in this release is David Smith, CPG, a qualified person as defined in National Instrument43-101–Standards of Disclosure for Mineral Projects. Mr. Smith supervised the preparation of the scientific and technical information that forms the basis for this news release and has reviewed and approved the disclosure herein. Mr. Smith is the Vice-President, Exploration of the Company. Mr. Smith supervised the drill program and verified the data disclosed, including sampling, analytical and QA/QC data, underlying the technical information in this news release, including reviewing the reports of ALS, methodologies, results, and all procedures undertaken for quality assurance and quality control in a manner consistent with industry practice, and all matters were consistent and accurate according to his professional judgement. There were no limitations on the verification process.

Figure 1. Plan view of proposed pads and drill roads to test Central Target (pads C1 and C2) and Western Target (pads W1 and W2). (Graphic: Business Wire)

Figure 2. Long section displaying intercepts of VMS mineralization in new zone located ~300 metres north of the Kay Mine Deposit. See Tables 1-3 for additional details. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 76%. See Table 1 for constituent elements, grades, metals prices and recovery assumptions used for AuEq g/t and CuEq % calculations. Analyzed Metal Equivalent calculations are reported for illustrative purposes only. (Graphic: Business Wire)

Figure 3. Long section displaying Kay Mine Deposit drill holes. See Tables 1-3 for additional details. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 76%. See Table 1 for constituent elements, grades, metals prices and recovery assumptions used for AuEq g/t and CuEq % calculations. Analyzed Metal Equivalent calculations are reported for illustrative purposes only. (Graphic: Business Wire)

Figure 4. Cross section view looking north showing assay intervals in drilling and locations of drilling currently underway. See Tables 1-3 for additional details. The true width of mineralization is estimated to be 50% to 99% of reported core width, with an average of 76%. (Graphic: Business Wire)

Figure 5. Long section displaying graphite and anomalous zinc intercepts from six holes drilled west from pad 7 towards the Central Target. Darker shading of EM conductivity anomalies represents higher intensity of conductivity. (Graphic: Business Wire)

Figure 6. Road construction is underway towards pads W1 and W2 for testing of the Western Target. Drilling from pads W1 and W2 is anticipated to commence in Q1’2023. (Photo: Business Wire)