Arizona Metals unveils maiden resource at Kay project
Toronto-based Arizona Metals has released its maiden mineral resource estimate (MRE) for the Kay project, flagging growth and development potential for the volcanogenic massive sulphide (VMS) asset.
The underground MRE outlines 9.28-million tonnes in the indicated category at a copper equivalent (CuEq) grade of 3.18%, containing more than 650-million pounds of copper equivalent. A further 0.86-million tonnes at 2.44% CuEq has been classified as inferred.
“The release of our initial MRE marks a major milestone for Arizona Metals and validates not only the scale, but more importantly, the quality of the Kay project,” said president and CEO Duncan Middlemiss.
“With over 650-million pounds of copper equivalent in the Indicated category alone – and with the deposit remaining open in multiple directions –we see significant opportunity for expansion through continued drilling. We believe this resource represents just the beginning.”
The indicated resource also includes 415 000 oz of gold, 8.25-million ounces of silver, and nearly 490-million pounds of zinc. The inferred category adds a further 29 000 oz of gold and 423 000 oz of silver.
Located in Yavapai county, the Kay mine sits within a 10-km trend of folded prospective host rocks, with less than 5% currently drilled. Arizona Metals highlighted the asset's suitability for bulk underground mining, noting its favourable geometry and continuity.
A preliminary economic assessment (PEA) is expected in the second half of the year, pending the completion of metallurgical testwork.
“With a strong treasury and a PEA on track for release later this year, we’re excited to advance the Kay project toward becoming one of the top undeveloped VMS projects in the US,” Middlemiss said.
The market did not share Arizona's enthusiasm for the MRE update, with the company's stock plunging nearly 30% to C$1.00 a share on Monday.
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