Metallurgical Testing At Sugarloaf Peak Project Demonstrates Excellent Gold Recoveries

TORONTO - Arizona Metals Corp. announced that metallurgical testing at its Sugarloaf Peak Project demonstrates gold recoveries averaging 76%, from surface to approximately 111 m, with oxidized zones reaching recoveries up to 95%. The Sugarloaf historic estimate of “100 million tons containing 1.5 million ounces gold” at a grade of 0.5 g/t (Dausinger, 1983, Westworld Resources), was estimated to a depth of only approximately 70 m.

Two of the drill holes completed in the 2020 Sugarloaf Phase 1 exploration program first underwent detailed hydrothermal alteration analyses, and composite samples from these holes were then submitted to Kappes Cassiday and Associates’ facilities in Reno, Nevada for metallurgical testing. Highlights of Sugarloaf Metallurgical Testing: Gold recoveries averaging 76%, with oxide recoveries reaching 95%; Excellent gold recoveries in both oxide and sulphide mineralization, to 111 m deep; and Gold recoveries not significantly impacted by sulphide content, indicating not refractory.

Drill hole SP-20-01 intersected 137 m of 0.53 g/t gold from surface, including, 99 m of 0.62 g/t gold, and 30 m of 0.90 g/t gold. Gold recoveries in this hole averaged 76%, from surface to a down-hole depth of 137 m (vertical depth of 97 m). Recoveries reached 95% in oxidized zones. Drill hole SP-20-02 intersected 119.8 m of 0.34 g/t gold from surface, including 21.6 m of 0.44 g/t gold, and 34.8 m of 0.41 g/t gold. Gold recoveries in this hole also averaged 76%, from surface to a down-hole depth of 119.8 m (vertical depth of 111 m). Recoveries reached 94% in oxidized zones.

Marc Pais, CEO, said, “Today’s results have demonstrated the potential for excellent gold recoveries, at depths well below the historic resource estimate, which was defined down to only 70 m. We note that gold recoveries average 76%, which compares very favorably to similar heap-leach deposits currently in operation. Importantly, we observe excellent recoveries in both oxide and sulphide mineralization, indicating that the gold is not refractory. We also note that our recent drilling has shown that mineralization can continue well below the 111 m depth of this metallurgical testing, with hole SP-20-01 intersecting 38.8 m of 0.32 g/t, from 127 m to 155 m, more than twice the historic estimate depth. Based on the success of these initial tests, we plan to undertake additional metallurgical testing on deeper mineralization. Reagent consumption was also typical of rates observed in producing mines. This initial metallurgical work indicates excellent potential to recover both sulphide and oxide material in deeper mineralization, with the deposit also remaining open for expansion on strike to both the northwest and southeast.”