July 2020 Arizona Metals Corp. (TSXV:AMC) Forward-Looking Statement - - PowerPoint PPT Presentation
July 2020 Arizona Metals Corp. (TSXV:AMC) Forward-Looking Statement - - PowerPoint PPT Presentation
TSX.V: AMC Unearthing a World-Class Gold-Copper-Zinc VMS Deposit July 2020 Arizona Metals Corp. (TSXV:AMC) Forward-Looking Statement Statements contained in this presentation that are not and Sugarloaf Peak projects will be obtained in
Arizona Metals Corp. (TSXV:AMC)
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Statements contained in this presentation that are not historical facts are “forward-looking information” or “forward- looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward Looking Information includes, but is not limited to, disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; the timing and costs of future exploration and testing activities on the Company’s properties; success of exploration activities; time lines for technical reports; planned exploration and development of properties and the results thereof; and planned expenditures and budgets and the execution thereof. Statements concerning historical mineral resource estimates may also be deemed to constitute forward looking information to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “plans”, “expects” or “does not expect”, “is expected”, budget”, “scheduled”, “suggest”, “optimize”, “estimates”, “forecasts”, “intends”, “anticipates”, “potential” or “does not anticipate”, believes”, “anomalous” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. In making the forward-looking statements in this presentation, the Company has applied several material assumptions, including, but not limited to, that the current testing and other objectives concerning the Kay Mine Project and Sugarloaf Peak project can be achieved and that its other corporate activities will proceed as expected; that the current price and demand for gold will be sustained or will improve; that general business and economic conditions will not change in a materially adverse manner and that all necessary governmental approvals for the planned exploration on the Kay Mine Project and Sugarloaf Peak projects will be obtained in a timely manner and on acceptable terms; the continuity of the price of gold and other metals, that the Company’s existing patented and unpatented land has not been altered by any designation under U.S. Federal statute or other laws and economic and political conditions and operations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance
- r achievements expressed or implied by the Forward-Looking
- Information. Such risks and other factors include, among
- thers, obtaining financing on commercially reasonable terms,
- perations and contractual obligations; changes in exploration
programs based upon results of exploration; future prices of metals; availability of third party contractors; availability of equipment; failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and
- ther
risks associated with the mineral exploration industry; environmental risks, including environmental matters under U.S. federal and Arizona rules and regulations; impact
- f environmental remediation requirements and the terms of
existing and potential consent decrees on the Company’s planned exploration on the Kay Mine Project and Sugarloaf Peak project; certainty of mineral title; community relations; delays in obtaining governmental approvals or financing; fluctuations in mineral prices; the Company’s dependence on two mineral projects; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the Company’s lack of operating revenues; governmental regulations and the ability to obtain necessary licenses and permits; risks related to mineral properties being subject to prior unregistered agreements, transfers or claims and other defects in title; impacts to patented and unpatented land by designation under U.S. Federal Statute or other laws, currency fluctuations; changes in environmental laws and regulations and changes in the application of standards pursuant to existing laws and regulations which may increase costs of doing business and restrict operations; risks related to dependence on key personnel; and estimates used in financial statements proving to be incorrect. Although the Company has attempted to identify important factors that could affect the Company and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or
- intended. There can be no assurance that Forward-Looking
Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, the Company does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this presentation to reflect events
- r
circumstances after the date hereof
- r
to reflect the
- ccurrence of unanticipated events.
The Qualified Person who reviewed and approved the technical disclosure in this presentation is David Smith, CPG.
Forward-Looking Statement
Arizona Metals Corp. (TSXV:AMC)
- Two 100%-owned projects with no future payments
- Strong community and political support for both projects
- Kay Mine VMS Project:
– Historic resource of 5.8Mt at 2.8g/t Au, 2.2% Cu, 3.03% Zn, 55/g/t Ag (Exxon, 1982) – North Zone 2020 drill results: 4.6m @ 6.9% CuEq – South Zone 2020 drill results: 6.1m @7.8g/t AuEq – Structural mapping and geophysics indicates potential for new lenses
- Sugarloaf Project:
– Historic resource of 1.5Moz gold at 0.5g/t (WW, 1982) – Drilling Commenced July 7, 2020; initial program to test metallurgy
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Investment Highlights
* the historical estimates for the Kay Mine and Sugarloaf Peak Projects predate and are unclassified and not compliant with NI 43-101
- guidelines. Significant data compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the
historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. The Company’s QP has not yet undertaken sufficient work to classify the historic estimate as a current resource and the Company is not treating the historic estimate as a current resource
Arizona Metals Corp. (TSXV:AMC)
Paul Reid MBA, Executive Chairman
- 15 years of experience in financing mineral exploration, development
and production assets
- Founder and former Chairman of Telegraph Gold (listed as Castle
Mountain Mining, later acquired by Equinox Gold)
- An Investment Banking professional with extensive experience in
raising capital, going-public transactions and advisory services Colin Sutherland, Director
- CPA with 20 years operational and financial experience
- Most recently served as President of McEwen Mining (NYSE:MUX)
(TSX:MUX)
- Served as CEO and Managing Director of Archipelago Resources Plc,
where he grew production to 200,000 ounces per year
- Held senior financial and executive roles with Timmins Gold, Capital
Gold, Nayarit Gold, and Aurico Gold Rick Vernon, Director
- 30 years experience as mining finance professional
- Previously Managing Director, Head of Investment Banking at PI
Financial Corp.
- Previously Managing Director, Head of Investment Banking at Stonecap
Securities Inc.
- BSc in Geological Sciences from Queen’s University
- MBA from University of Southern California
Conor Dooley, Corporate Secretary, Director
- Partner at WeirFoulds LLC in Toronto
- Advises clients in securities regulatory matters and capital markets
transactions
- LLB from Dalhousie University
Marc Pais, President and CEO, Director
- B.Sc. Geological Engineering (Mineral Exploration) from Queen’s
University
- Founder and former President of Telegraph Gold (listed as Castle
Mountain Mining, later acquired by Equinox Gold)
- Seven years experience as a Mining Analyst, with a focus on precious
metals development companies David Smith CPG, Vice President of Exploration
- 30 years of global precious metals exploration experience, including co-
discovery of ~1M oz Au eq Solidaridad/La Sabila deposit, Mexico
- Core expertise is managing mineral projects from acquisition to
exploration, resource modeling, and project development
- MSc from University of Oregon
- MBA from Pinchot University/Presidio Graduate School
- Dr. Mark Hannington, Technical Advisor
- 35 years of experience as a research geologist, specializing on
volcanogenic massive sulfide deposits and the metallogeny of modern and ancient volcanic belts
- Currently a Professor of Economic Geology at the University of Ottawa
- Previously worked as a senior scientist in mineral resources at the
Geological Survey of Canada for 15 years
- BSc in Geology from Queen’s University
- MSc and PhD from the University of Toronto
Sung Min (Eric) Myung, Chief Financial Officer
- Senior Financial Analyst at Marrelli Support Services Inc.
- Previously worked at public accounting firms for 7 years
- Canadian Professional Accountant designation
- Master of Accounting degree from University of Waterloo
Leadership Team
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Arizona Metals Corp. (TSXV:AMC)
Management and Insiders 25% (16M) 11 Institutional Investors 17% (10.9M) Riverside Resources 3% (2.0M) 7 Private Investors 24% (13.2M) Public Float 31% (19.6M)
Shares Outstanding (basic) 63.8M Market Capitalization $47M Options 9.8M Warrants 12M Shares Outstanding (FD) 85.6M Cash at May 31, 2020 $8.3M Ownership by Management and Insiders 16M (25%)
Capital Structure
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Ownership Michael Gray Analyst Coverage Share Price History Tyron Breytenbach Brock Salier
Arizona Metals Corp. (TSXV:AMC) Kay Mine Project Overview – located in prolific mining district
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Arizona Metals Corp. (TSXV:AMC)
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Copper (32%) Zinc (16%) Silver ( 8%) Gold (44%)
Kay Deposit Value by Metal
Historic Resource is 52% Precious Metals by Value at Spot Prices
Metal content calculated at metals prices of US$1,725/oz Au, US$15/oz Ag, US$2.30/lb Cu, and US$0.85/lb Zn. Recoveries are assumed to be 100% as no metallurgical data available
* The historical estimates for the Kay Mine and Sugarloaf Peak Projects predate and are unclassified and not compliant with NI 43-101 guidelines. Significant data compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. The Company’s QP has not yet undertaken sufficient work to classify the historic estimate as a current resource and the Company is not treating the historic estimate as a current resource
Kay Mine Tonnes (Mt) 5.8 Cu grade (%) 2.20% Zn grade (%) 3.03% Silver grade (g/t) 55 Gold grade (g/t) 2.81
Arizona Metals Corp. (TSXV:AMC)
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Significant Historic Exploration Expenditures from 1923 to 1982
Source: Exxon Minerals (1982), New Jersey Copper (1951), Arizona Geological Survey (2007)
2 access shafts to 450m each (3m x 3m) $50,000/m 45 2 ventilation shafts to 450m each (1.5m x 1.5m) $25,000/m 23 4,600m underground drifts (2m x 2m) $700/m 3 5,500m underground drilling and 1,500 underground assays samples every 4 feet $300/m 2 7,000m surface drilling $300/m 2 2,700 tonnes metallurgical testing $150/t 0.4 Geophysics (Exxon 1970's): EM, IP, VLF, MT - 500 line km $800/line km 0.4 Historic Work Estimated Unit Cost 2020 Total Estimated Cost 2020 ($millons) Total Estimated Historic Exploration Expenditures (1923-1982) 75
Arizona Metals Corp. (TSXV:AMC) Large Database of Historic Exploration Work (1921-1982)
9 * The historical estimates for the Kay Mine and Sugarloaf Peak Projects predate and are unclassified and not compliant with NI 43-101 guidelines. Significant data compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. The Company’s QP has not yet undertaken sufficient work to classify the historic estimate as a current resource and the Company is not treating the historic estimate as a current resource Source: Estimates by Arizona Metals Corp. Data from Exxon Minerals 1972-1982
Arizona Metals Corp. (TSXV:AMC)
Highlights of the first six holes in the North Zone include:
- KM-20-03: 2.7m grading 5.41% CuEq (incl. 0.9m of 10.32% CuEq), from a depth
- f 120m
- KM-20-03A: 4.6m grading 6.85% CuEq (incl. 0.8m of 18.19% CuEq) from a
depth of 122m
- KM-20-05: 2.4m grading 9.19% CuEq (incl. 1.2m of 13.89% CuEq) from a depth
- f 150m
- KM-20-06: 13.5m grading 2.92% CuEq (incl. 4.9m of 4.54% CuEq) from a depth
- f 158m
- KM-20-09: 6.1m grading 7.8g/t AuEq (incl. 4.4m of 9.3g/t AuEq) from a depth of
570m
- KM-20-10: 4.9m grading 6.2% CuEq (incl. 3.0m of 7.8% CuEq) from a depth of
480m
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First 10 Holes of Phase 1 Program completed June 2020
Arizona Metals Corp. (TSXV:AMC)
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Hole KM-20-03 at depth of 256m downhole, grading 7.4% Cu, 1.8g/t Au, 56g/t Ag, and 1.1% Zn. This image is of a selected interval and is not representative of mineralization hosted on the property. Hole KM-20-05 at depth of 267m downhole, grading 10.6% Cu, 2.2g/t Au, 50g/t Ag, and 1.0% Zn. This image is of a selected interval and is not representative of mineralization hosted on the property.
Kay Mine North Zone Initial Drill Results – Core Samples
Arizona Metals Corp. (TSXV:AMC)
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Kay Mine South Zone Initial Drill Results – Core Samples
Hole KM-20-09, from 2079’ to 2088’ down-hole. The interval displayed above is part of a longer interval of 4.4m grading 5.5g/t gold and 9.1% zinc. This image is of a selected interval and is not representative of mineralization hosted on the property.
Arizona Metals Corp. (TSXV:AMC)
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Expansion Potential at Depth
Source: Estimates by Arizona Metals Corp. Data from Exxon Minerals 1972-1982 * The historical estimates for the Kay Mine and Sugarloaf Peak Projects predate and are unclassified and not compliant with NI 43-101 guidelines. Significant data compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. The Company’s QP has not yet undertaken sufficient work to classify the historic estimate as a current resource and the Company is not treating the historic estimate as a current resource
Arizona Metals Corp.
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Massive Sulphide Lens
After Hannington et al., 1999
Massive sulphide lenses form on seafloor and are then folded to a vertical orientation during metamorphic events
Formation of VMS Deposits
Arizona Metals Corp. (TSXV:AMC)
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Expansion Potential Along Strike – SRK Structural Mapping
Source: Structural Geology Mapping of the Kay Mine Project, Arizona, USA (SRK, 2020)
¸ ¸ ¸ ¸
! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (
390500 390500 391000 391000 391500 391500 392000 392000 392500 392500 393000 393000 3768000 3768000 3768500 3768500 3769000 3769000 3769500 3769500 3770000 3770000 3770500 3770500
Legend
! (
VTEM Anomaly Proposed Collars VTEM Anomaly Proposed Trace
¸
Mine Shaft Kay Mine Resource Zone Maxwell Plate Anomalies
0.4 0.8 0.2 Km
Kay Mine Central Conductor Western Conductor
Arizona Metals Corp. (TSXV:AMC)
March 2019 VTEM survey defined large untested targets west of Kay Mine
¸ ¸ ¸ ¸
! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! (
! (
8 9 7 6 5 3 2 1 4 11 47 34 21 32 23 14 15 10 18 13 28 12 27 36 35 31 19 20 24 33 17 16 29 49 48 25 26 30 22 46 40 43 38 37 50 45 44 42 41 39
K-9 K-8 K-7 K-6 K-5 K-4 K-3 K-2 K-1 K-17 KA-7 KA-5 KA-2 KA-9 KV-3 KV-2 KV-1 K-16 K-14 K-13 K-12 K-10 K-10A KA-6_E
Shaft No 2 Shaft No 4 Shaft No 3 Shaft No 1
390500 390500 391000 391000 391500 391500 392000 392000 392500 392500 393000 393000 393500 393500 3768500 3768500 3769000 3769000 3769500 3769500 3770000 3770000 3770500 3770500
Old Workings (Gossan Zone)
500 1,000 250 Meters
¯
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Source: Arizona Metals Corp, March 2019
Arizona Metals Corp. (TSXV:AMC)
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- 3 drill holes proposed to test the Central Conductor (MX2) and 6 for the Western Conductor (MX1)
Arizona Metals Corp. (TSXV:AMC)
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Figure 1.Neighbouring landowner, Marc Pais (CEO), Senator Karen Fann, Paul Reid (Chairman), David Smith (VP Exploration)
Strong Community Support for Kay Mine Project Development
“Arizona Metals Corp. is the kind of company and operation we want to see in rural Arizona. When you combine this thoughtful approach to doing things the right way with the potential this project has to ultimately create hundreds of jobs and dynamic economic activity, as the State Senator for this area, I am very excited to have this company and project in my district.” Senator Karen Fann “As a state representative of the legislative district in which you are
- perating, I care very much about the potential for job creation and
economic activity that your project represents. But I also care about the quality of life of the citizens that I represent, so I appreciate all you are doing to work with the people that live in the area.” State Representative Noel Campbell “As the co-chair of the Arizona Legislature’s Mining Caucus, as well as a state representative of a northern Arizona rural district just up the road from your project, I am delighted to see your project come to our state and thrilled at what might develop in the Black Canyon City area and beyond… I wholly appreciate and endorse your efforts and will do whatever I can to support the ultimate success of the operation and all the benefits it will bring to rural Arizona. I also appreciate the ethical and community sensitive approach your company brings to the project. And I have appreciated the way you have brought me and other public
- fficials into the loop.” Arizona House Representative, Bob Thorpe
Arizona Metals Corp. (TSXV:AMC) Sugarloaf – Deposit Open Laterally and at Depth
19 * The historical estimates for the Kay Mine and Sugarloaf Peak Projects predate and are unclassified and not compliant with NI 43-101 guidelines. Significant data compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. The Company’s QP has not yet undertaken sufficient work to classify the historic estimate as a current resource and the Company is not treating the historic estimate as a current resource
Arizona Metals Corp. (TSXV:AMC)
3725030N SECTION
SCALE
- 50
- 693.9 m
- REF. PT. E, N
SECTION SPECS: HOLES PLOTTED
TOTAL 32 CS-12 CS-7 SGL-11-02 SGL-11-06 SGR-12-09 SGR-12-12 SLP-09-001 SLP-09-002 SLP-09-003 SLP-09-004 SLP-09-005 SWR-1 SWR-10 SWR-11 SWR-12 SWR-13 SWR-14 SWR-18 SWR-2 SWR-3 SWR-4 SWR-5 SWR-6 SWR-7 SWR-8 SWR-9 WW-10 WW-5 WW-6 WW-7 WW-8 WW-9 Au__ppb R BAR GRAPHS L/R COL 3D_Sugarloaf_DEM.dem TOPOGRAPHY747500 E 748000 E 748500 E 749000 E 3725000 N 3725000 N 3725500 N
CS-12 SGL-11-02 S G R- 1
- 1
- 9
- 1
- 9
- 2
- 9
- 3
- 9
- 4
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Sugarloaf – Untested IP Anomalies at Depth show Potential for Higher Grade Feeder Zones – Drilling started July 2020
Arizona Metals Corp. (TSXV:AMC)
- Two 100% owned projects in mining-friendly Arizona
- Excellent infrastructure at both projects-road, power and water access
- Kay Mine is a high-grade VMS target with historic estimate of 5.8Mt at
6.4% CuEq*
- Sugarloaf is a near-surface, open-pit target with a 1.5Moz gold historic
resource estimate*
- Phase 1 core drill program of 6,000m at Kay Mine approx. 75% complete
- Drilling underway at Sugarloaf Project will test metallurgy and potential for
feeder zones at depth. Summary
21 * The historical estimates for the Kay Mine and Sugarloaf Peak Projects predate and are unclassified and not compliant with NI 43-101 guidelines. Significant data compilation, re-drilling, re-sampling and data verification may be required by a Qualified Person before the historic resource can be verified and upgraded to be compliant with current NI 43-101 standards. The Company’s QP has not yet undertaken sufficient work to classify the historic estimate as a current resource and the Company is not treating the historic estimate as a current resource
Arizona Metals Corp. (TSXV:AMC)
Marc Pais President & CEO
416.565.7689 mpais@arizonametalscorp.com
Paul Reid Chairman
416.845.9311 preid@arizonametalscorp.com
Contact
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Website
http://www.arizonametalscorp.com/
https://twitter.com/ArizonaCorp