Sprott Asset Management USA Inc.


AZ Mining – Hermosa zinc-lead-silver-copper and silver-manganese project in southern Arizona – June 2015

Neil Adshead visited AZ Mining’s (AZ on the TSX) 80%-owned Hermosa property in southern Arizona, close to the small town of Patagonia, in the latter half of June 2015.  AZ Mining, until recently known as Wildcat Silver, initially focused on advancing the bulk tonnage, near-surface, manto oxide portion of the large mineral system after acquiring the property in the middle of the last decade.  AZ Mining completed a prefeasibility study on the manto oxide resource, now referred to as ‘Hermosa Central’, in late 2013 but due to the large upfront capital requirement, and depressed market for raising finance, the plan to produce more than five million ounces of silver per year and become the only producer of electrolytic manganese in the US was deferred.  AZ Mining shifted their strategy to exploration/delineation and chased up previously intersected massive sulphide mineralization beneath the manto oxide blanket to the north-west of the core of ‘Central Hermosa’.  The deeper drilling has generated several high-grade zinc-lead-silver±copper massive sulphide intervals within the prospective ‘Epitaph Limestone’ unit in what an area now known as ‘NW Hermosa’, e.g., http://www.azmininginc.com/news/wildcat-intersects-high-grade-zinc-lead-and-silver-at-hermosa-nw.  The zinc-lead-silver±copper massive sulphide mineralization replaces several beds in the limestone unit generating multiple stacked sheets between 300 to >1,000 m beneath the land surface.  This style of massive sulphide mineralization in carbonate-rich host rocks generates what are known as CRDs, or ‘Carbonate Replacement Deposits’.  Several large mines in Mexico extract ore from CRDs.  AZ Mining continues the deeper drilling program with the aim of testing the limits of the CRD and ultimately will aim to delineate a maiden resource estimate.  




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