VANCOUVER, Nov. 23, 2015 /CNW/ - Arizona Mining Inc. (TSX: AZ) ("Arizona Mining" or the "Company") is pleased to announce the appointment of Mr. Johnny Pappas to the position of Director of Environment and Permitting effective January 1, 2016. The Company also announces that it has entered into an option agreement with Bronco Creek Exploration, Inc. ("Bronco Creek") to acquire sixteen (16) unpatented mining claims that total approximately 279 acres.
Mr. Pappas has a distinguished career in the field of environmental management and permitting. Mr. Pappas recently held the position of Director of Environmental Affairs for Romarco Minerals Inc. where he was instrumental in directing the federal and state permitting of the Haile Gold Mine; the first gold mine permitted east of the Mississippi in the last 20 years. He was previously the Environmental Manager of the Climax Mine and was Permit Coordinator for Barrick's Cortez Gold Mines. In addition, he has held several Senior Environmental Engineer positions with Pacificorp, Plateau Mining and Santa Fe Pacific Gold. Mr. Pappas holds a B.Sc. degree in Geology and Business Administration.
Mr. Pappas is recognized as a leader in his field and has won numerous awards including: the 2003 "Best of the Best" Award – awarded by the Department of Interior's Office of Surface Mining in recognition for extraordinary personal commitment and outstanding contribution for the reclamation success at the Castle Gate Mine and the 2003 "Excellence in Surface Coal Mining Reclamation" Award.
Richard Warke, Chairman and CEO of Arizona Mining, commented, "We are very pleased to have someone with Johnny's expertise and recent permitting success join our team as we continue to advance the development of our Hermosa projects. He will bring in-depth practical experience to an area that is critical to the future development of these resources."
Agreement with Bronco Creek
The sixteen (16) unpatented mining claims under option from Bronco Creek are located approximately three quarters of a mile south west of the Company's Hermosa North West exploration project and adjacent to the approximately 300 acres of patented mining claims that the Company is also acquiring as announced on July 24, 2015. The agreement calls for a payment of US$25,000 on execution followed by three annual option payments of US$20,000. In the event the option agreement is exercised and the claims acquired Bronco Creek retains a 2% NSR royalty from any future commercial production.
The addition of the Bronco Creek mining claims together with the patented mining claims being acquired will greatly expand Arizona Mining's surface lands available for further exploration on the Hermosa North West Project and potential mining operations.
About Arizona Mining
Arizona Mining Inc. is a Canadian mineral exploration company focused on the development of its 80% owned Hermosa property located in Santa Cruz County, Arizona. The Hermosa property currently has two distinct projects: Hermosa North West, a zinc-lead-silver carbonate replacement zone sulfide mineral exploration project; and Hermosa Central, a silver-manganese manto oxide development project. North West has a resource calculated in accordance with NI 43-101 and is being drilled to test the limits of that resource. The Company released the results of the first seven holes of the current drill program on North West that showed high grade zinc, lead and silver intercepts over significant thicknesses. Central's December 2013 prefeasibility study indicates it is expected to be one of the largest primary silver producers as well as the only electrolytic manganese metal producer in the USA at industry low cash costs. The pre-feasibility study estimates annual production of 5.7 million ounces of silver and 110 million pounds of electrolytic manganese metal (EMM) at average cash costs of $4.41 per silver ounce and $0.74 per EMM pound over an 18 year mine life.
Cautionary Note Regarding Forward-Looking Information
Certain information contained in this press release constitutes forward-looking statements. All statements, other than statements of historical facts, are forward looking statements including statements with respect to the Company's intentions for its Hermosa property in Arizona, USA including, without limitation, drilling on Hermosa North West and expected future mineral production and operating costs on Hermosa Central. Forward-looking statements are often, but not always, identified by the use of words such as may, will, seek, anticipate, believe, plan, estimate, budget, schedule, forecast, project, expect, intend, or similar expressions.
The forward-looking statements are based on a number of assumptions which, while considered reasonable by Arizona Mining, are subject to risks and uncertainties. In addition to the assumptions herein, these assumptions include the assumptions described in Arizona Mining's management's discussion and analysis for the year ended December 31, 2014 ("MD&A"). Arizona Mining cautions readers that forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements and forward-looking statements are not guarantees of future results, performance or achievement. These risks, uncertainties and factors include general business, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and production costs; future prices of zinc, lead, silver and other minerals; variations of mineral grade or recovery rates; operating or technical difficulties in connection with exploration, development or mining activities, including the failure of plant, equipment or processes to operate as anticipated; delays in completion of exploration, development or construction activities; changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain required licenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the exploration, development and mining business; and the factors discussed in the section entitled "Risks and Uncertainties" in the MD&A.
Although Arizona Mining has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Arizona Mining disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.
SOURCE AZ Mining Inc.
For further information: Paul Ireland, CFO on 604-484-3597, e-mail [email protected]