On Thursday, Scotiabank reiterated its Sector Outperform rating and Cdn$4.50 stock price target for Arizona Metals Corp (AMC:CN) (OTC: AZMCF). The firm's outlook remains positive following Arizona Metals' announcement of promising drilling results from the Kay Mine project and nearby targets.
A significant discovery was made at the North Central target with a high-grade copper equivalent (CuEq) found over a short interval. Multiple intersections at Kay showed notable gold equivalent (AuEq) and CuEq grades.
At the North Central target, drilling uncovered a new mineralized horizon, with a standout hole KM-24-153 yielding 11.3% CuEq over a 0.5-meter section of massive sulfide mineralization. This discovery is considered an early, yet encouraging sign for the potential of the area.
Meanwhile, at the Kay Mine, drilling continues to define the extent of the deposit. Results included a 41.3-meter section with 1.5 g/t AuEq, which encompassed a higher-grade segment of 2.9 meters at 10.4 g/t AuEq.
Further exploration at Kay revealed additional intersections: one measuring 12.3 meters at 1.3% CuEq and another at 11.3 meters with 2.5% CuEq, including a particularly high-grade section of 3.7 meters at 4.8% CuEq. These findings contribute to the ongoing assessment and understanding of the mineral resources within the project.
The exploration efforts at Arizona Metals are far from complete, with drilling operations actively continuing. Scotiabank's analyst views the recent drilling results as mildly positive for the company's share performance. The discovery of a new mineralized zone, coupled with consistent high-grade intersections at Kay, suggests a solid foundation for future resource estimates.
Investors and industry watchers are anticipating the release of a maiden resource estimate for the Kay Mine, which is expected to be published in mid-2025. This upcoming milestone will likely provide a clearer picture of the project's value and potential impact on Arizona Metals Corp's market position.
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