New Priority Drill Targets At The Kay Mine Project

TORONTO - Arizona Metals Corp. reported on the comprehensive property-wide rock grid sampling program as another step towards unlocking the full potential of the Kay Project in Arizona. A number of advanced processing techniques were applied to the new data in order to identify at least 4 new high-priority drill targets, all in areas previously untested by drilling. Planning of these drill holes is now underway and will use a combination of the 11 drill pads permitted under the current Notice of Intent starting early in 2024 and also with new pads, once permitted, using the upcoming Exploration Plan of Operations (EPO). The Company will provide an update on timing of the expected EPO approval once the draft EPO has been submitted, and initial comments have been received from BLM.

Marc Pais, CEO, said, "The rock sample grid results released today will pave the way for a more streamlined approach to testing drill targets beyond the already prolific Kay Deposit. Our team has harnessed the power of cutting-edge data analysis techniques, comparing these results with recent drilling endeavors, and cross-referencing them with data from prior geophysical and geochemical test programs. These results will guide our focus in 2024, as we eagerly anticipate drilling in areas that promise to build upon the very promising mineralization we initially discovered in the Central and West Targets."

Arizona Metals has drilled a total of 99,000 meters on the Kay property. The results of 16 holes are currently pending and will be released early in 2024. The Company is fully funded (with $40 million in cash as of Sept 30, 2023) to complete the remaining 60,000 m of the 76,000-meter Phase 3 drill program, which will include drill holes testing the four new priority targets.

Results from the recently completed property-wide rock sample grid have identified four initial exploration targets, based on anomalous values of copper, zinc, and sodium/zinc alteration index. The copper concentration map reveals that anomalously high copper samples tend to be localized within felsic host rocks. Two samples assayed percent-grade copper, including 5.5% Cu along the West Target sulfide horizon, and 2.7% Cu in the northeast portion of the property. A number of high copper samples stretch north from the Central Target, forming a surface anomaly above mineralization intersected in drill hole KM-22-95 (2.7 m @ 0.5% CuEq), and confirming this area as a primary exploration target.

Zinc assays reveal a trend similar to that of copper, with discrete zones of anomalously high values, generally concentrated in the northeast portion of property. Similar to copper trends, elevated zinc values stretch north from the Central Target and effectively track the northern extension of the Kay horizon. The south-central portion of the property also shows a zone of anomalous zinc values.

The Na/Zn ratio map identifies areas affected by mineralizing hydrothermal fluids. These fluids have removed sodium by converting feldspar into mica, and they have added zinc, the principal indicator of metal-rich fluids in volcanogenic massive sulfide systems. Thus, lower values of Na/Zn are more prospective (orange and red), and higher values less prospective (blue). Favorable low ratios are observed to the east in the felsic unit hosting the Kay Deposit and forming a trend stretching north from the Central Target, coincident with elevated copper and zinc. Additionally, low Na/Zn ratios are present in the south-central portion of the property coincident with anomalous zinc, as well as throughout the West Target.

Four new priority target areas have been identified through a number of data analysis techniques on the Kay property-wide rock grid results, some of which are described above. Newly collected rock sample data has been combined with the results of previously completed electromagnetic, magnetic, gravity and soil sampling tests. Additional targets may emerge from further data analysis. The North Central Target is one of the largest Na/Zn low footprints on the property. This coincides with a strong trend of high copper and zinc samples, a strong chlorite-pyrite alteration assemblage, and drill results from hole KM-22-95 (2.7 m @ 0.5% CuEq). Target 1 may represent a folded continuation of the Kay Deposit horizon. Additional surface rock sampling is underway on this target to refine drill-hole planning. This target can be reached from pads 4, 6, and 7; drilling is anticipated here during Q1 2024. Directly west of the North Central Target, this target shows a strong felsic host-rock signature, anomalous zinc and copper values, and low Na/Zn ratios, supplementing a previously collected rock sample that assayed 3.3% Cu and 3.1 g/t Au. This target will require new road access and will be drilled on receipt of the EPO. The Northwest Target is the northern extension of the West Target. Along with drill results indicating that mineralization is strengthening to the north (KM-23-113, 3.0 m @ 2.0% Cueq), both field mapping and Zr/Ti ratios from the rock sample grid suggest that more felsic rock is concentrated in this northern area compared to the previously drilled western edge of the property. Additionally, recent field mapping in this area discovered copper mineralization in outcrop (malachite and visible sulfides, assays pending). This target will require a road extension north from pad W2 and will be drilled on receipt of the EPO. The Southeast target shows promising indications of a buried mineralized horizon beneath mafic rocks mapped at surface. This includes a zone of low Na/Zn ratio, a chlorite-pyrite alteration signature, and elevated copper and zinc. Portions of this target are reachable from pad 5. Initial drilling is anticipated here during Q2 2024, with full drill testing on receipt of the EPO.