VANCOUVER, BC–(Marketwired – December 14, 2016) – Arizona Mining Inc. (TSX: AZ) (“Arizona Mining” or the “Company”) is responding to the latest article published by the Global Mining Observer that is aimed at discrediting Arizona Mining and its Taylor Project.
The latest article quotes unnamed sources giving generic opinions about the marketability of zinc concentrates containing manganese. Global Mining Observer then takes these general comments and attempts to apply them to Arizona Mining to discredit what the Company has announced to date on its Taylor deposit.
As previously disclosed, Arizona Mining has done initial bench-scale metallurgical work on the various types of ore found at the Taylor deposit which does not yet reflect cleaner stages, regrinds or any optimization, which may reduce the manganese levels. The same initial results show very low iron and cadmium contents and negligible mercury and arsenic, which are other common undesirable elements.
Initial work indicates a manganese content of approximately 0.1% in the lead concentrate and approximately 1.3% in the zinc concentrate. As previously noted, the penalties for a zinc concentrate containing 1.3% manganese are estimated to be $12 per dry metric tonne versus the zinc concentrate value of over $1,100 per dry metric tonne at a $1.00 per pound zinc price. This equates to approximately 1% of the estimated concentrate value and is therefore immaterial.
Skarn deposits are well known to be mineralogically zoned. As previously disclosed, comprehensive metallurgical testing is underway that will include establishing the manganese distribution in sulfides within the various stratigraphic horizons and this work will form part of the Company’s preliminary economic assessment (“PEA”) due out at end of Q1 2017.
Smelters have the ability to purchase different grades of concentrates and blend them, thereby achieving their desired levels of manganese. Should the proposed PEA and subsequent mining studies support the economic viability and technical feasibility of the Taylor Project and the project is subsequently developed, the Company would have the option to spread out concentrate sales to several smelters rather than having one dedicated buyer.
Arizona Mining has been in contact with smelters who have expressed interest in our possible future supply of zinc concentrate, and after consultation with industry experts, we see no issue with the Taylor zinc concentrates being saleable. Arizona Mining also notes that most bank analysts foresee an impending supply deficit in zinc concentrates as a result of several major mine closures in the last five years, and hence is confident its zinc product will be in high demand.
Arizona Mining’s senior management has decades of hands-on experience with base metal projects like Taylor, and looks forward to 2017 with its world-class Taylor deposit.
Qualified Persons
This press release has been approved (to the extent the scientific and technical information is not based on the November 29, 2016 technical report) by Donald R. Taylor, MSc., PG, Chief Operating Officer for Arizona Mining Inc., a qualified person as defined by National Instrument 43-101 (NI 43-101). Mr. Taylor has more than 25 years of mineral exploration and mining experience, and is a Registered Professional Geologist through the SME (registered member #4029597). The metallurgical results in the November, 29, 2016 technical report have been undertaken by Deepak Malhotra of Resource Development Inc. (RDi). Mr. Malhotra is a qualified person as defined by National Instrument 43-101 (NI 43-101) and a registered member in good standing of the Association of Society of Mining, Metallurgy and Exploration Inc. (SME) (License # 2006420RM). Mr. Malhotra has worked as a Metallurgist/Mineral Economist for 43 years since graduating from the Colorado School of Mines.
About Arizona Mining
Arizona Mining Inc. is a Canadian mineral exploration and development company focused on the exploration and development of its 100% owned Hermosa Project located in Santa Cruz County, Arizona. The Taylor Deposit, a zinc-lead-silver carbonate replacement deposit, has a resource of 31.1 million tons in the Indicated Mineral Resource category grading 10.9% zinc equivalent (“ZnEq”) and 82.7 million tons in the Inferred Mineral Resource category grading 11.1% ZnEq both utilizing a 4% ZnEq cutoff grade calculated in accordance with NI 43-101 guidelines (refer to the Company’s news release dated October 31, 2016). The Taylor 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 project.
Cautionary Note Regarding Forward-Looking Information
Certain information contained in this press release constitutes forward-looking statements. All statements, other than statements of historical facts, are forward looking statements including statements with respect to the Company’s intentions for its Hermosa Project in Arizona, including, without limitation, performing additional drilling and metallurgical testwork on the Taylor Deposit. Forward-looking statements are often, but not always, identified by the use of words such as may, will, seek, anticipate, believe, plan, estimate, budget, schedule, forecast, project, expect, intend, or similar expressions.
The forward-looking statements are based on a number of assumptions which, while considered reasonable by Arizona Mining, are subject to risks and uncertainties. In addition to the assumptions herein, these assumptions include the assumptions described in Arizona Mining’s management’s discussion and analysis for the year ended December 31, 2015 (“MD&A”). Arizona Mining cautions readers that forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements and forward-looking statements are not guarantees of future results, performance or achievement. These risks, uncertainties and factors include general business, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and production costs; future prices of zinc, lead, silver and other minerals; variations of mineral grade or recovery rates; operating or technical difficulties in connection with exploration, development or mining activities, including the failure of plant, equipment or processes to operate as anticipated; delays in completion of exploration, development or construction activities; changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain required licenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the exploration, development and mining business; and the factors discussed in the section entitled “Risks and Uncertainties” in the MD&A.
Although Arizona Mining has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Arizona Mining disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.
For additional information please contact:
Susan Muir
Vice-President, Investor Relations & Corporate Communications
Telephone: 416-505-7606
Email: [email protected]
