VANCOUVER, July 24, 2015 /CNW/ - AZ Mining Inc. (TSX: AZ) ("AZ Mining" or the "Company") AZ Mining is pleased to announce that it has reached agreement to acquire approximately 300 acres of patented mining claims from the Asarco Multi-State Environmental Custodial Trust. The addition of the land package, which is adjacent to the Company's existing 154 acres of patented mining claims, will greatly enhance AZ Mining's surface lands for any future mining operations.
Consideration for the acquisition will be the assumption of the environmental liabilities relating to the site that resulted from historic mining activity. The Company has submitted a remediation work plan that addresses the environmental liabilities with the Arizona Department of Environmental Quality and will construct a passive water treatment system estimated to cost US$2.6 million, excluding contingency, of which the Company's share will be US$1.6 million. In addition, the Company will be required to post bonds, in an amount to be agreed, to secure the future operating performance of the system. The acquisition is expected to be completed within 90 days.
About AZ Mining
AZ Mining 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 five holes of the current drill program on North West in May, 2015 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, completing the acquisition of approximately 300 acres of patented mining claims, 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 AZ Mining, are subject to risks and uncertainties. In addition to the assumptions herein, these assumptions include the assumptions described in AZ Mining's management's discussion and analysis for the year ended December 31, 2014 ("MD&A"). AZ 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 AZ 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 AZ 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]