Arizona Gold & Silver reports 7.04m at 4.24 g/t gold at Philadelphia

Arizona Gold & Silver Inc. CVEAZS OTCMKTSAZASF reported on Wednesday that hole PC26-173 cut 7.04 metres at 4.24 grams per tonne gold beneath Red Hills at its Philadelphia project in Arizona. The intersection sits inside 43.59 metres at 1.48 grams per tonne gold and extends mineralization below the Perry Zone, the company said.

Shares fell 11.9 per cent to C$0.59 on the TSX Venture Exchange, according to the CVEAZS quote timestamped 4 p.m. EDT on Sept. 30.

PC26-173's broad interval began 445.62 metres down hole and also averaged 7.2 grams per tonne silver. Within it, 21.88 metres returned 2.52 grams per tonne gold. That section included 13.14 metres at 3.51 grams per tonne gold and the narrower 7.04-metre section.

The company has completed PC26-174, with assays pending. It is drilling PC26-175 about 60 metres to the north. The two holes reported Wednesday tested the projected down-dip continuation of the Perry Zone beneath Red Hills.

The reported intervals are drilled core lengths, and Arizona estimates their true thickness at about 60 per cent of those lengths. PC26-172's broader interval began 416.97 metres down hole. It ran for 70.41 metres at 1.16 grams per tonne gold. A separate 10.21-metre section returned 3.27 grams per tonne gold and 19.3 grams per tonne silver.

The two new holes were drilled at shallow angles and deviated by as much as nine degrees, Arizona said. It is combining surveyed hole paths with grade distribution, geology and silver-to-gold ratios before deciding the orientation of subsequent holes. The company interprets PC26-172 as having passed south of, or along the margin of, the gold-rich core it is targeting.

"We are using each hole to better understand the geometry and continuity of those higher-grade zones while also evaluating the broader mineralized envelope," senior vice-president of exploration Lex Lambeck said in the Sept. 30 release.

The Sept. 8 infill results came from holes above the deeper Perry Zone target. One of those holes, PC26-171B, cut 90.71 metres at 1.45 grams per tonne gold. It included 9.94 metres at 5.58 grams per tonne gold; the new holes were drilled beneath that zone to test its down-dip extent.

Arizona closed a roughly C$12 million placement on Aug. 20 and said at least 90 per cent of its gross proceeds would go to accelerating exploration at Philadelphia. The Sept. 30 drilling release gave no updated cash balance, metre target or end date for this phase. Arizona also lists the Silverton gold project in Nevada among its assets.

Read more: Arizona Gold launches Nevada drilling program targeting antimony and gold

Assays from PC26-174 were pending as of Sept. 30, with no release date given by Arizona.