Promising Exploration Results Reveal Significant Gold-Silver Intervals at Arizona Project

Arizona Gold & Silver Inc. (AZS:TSX;  AZASF:OTC) has announced promising initial results from sampling a recently uncovered historic adit and RC drilling at their Philadelphia Gold-Silver property in Arizona. The focus of exploration, confined to the Rising Fawn and Resaca claims, revealed significant mineralized intervals through systematic channel sampling and RC drilling.

Channel sampling on the Rising Fawn claim returned notable results, including a 30.5-metre section grading 2.33 grams per tonne (gpt) gold and 15.27 gpt silver. Additional intervals included 18.28 metres grading 0.59 gpt gold and 3.74 gpt silver. The total adit intersected 48.78 metres with an average grade of 1.68 gpt gold and 10.95 gpt silver. These findings highlight the potential of the mineral system extending from the adit entrance, as specified in the company news release.

The RC drilling results also indicated positive findings, particularly in the previously untested Rising Fawn Gap. Drilling results revealed gold-silver mineralization associated with stockwork breccia and overlying volcanics. The significant intercepts included 47.25 metres grading 0.85 gpt gold and 2 gpt silver, suggesting continued mineralization into the gap.

Gold and Silver Outlooks

According to Stewart Thomson's July 2 article, "Gold's Bull Flag & The Election In Iran", posted on 321 Gold,  the gold sector has seen significant interest from both Eastern and Western investors. Thomson noted, "The gold bull era... what exactly is it? While silly Westerners worship government fiat and debt-funded bully wars, billions of citizens in China and India focus on 'going big' with saving... and going big with gold!" He also highlighted the ongoing demand from central banks and citizens in the East, stating, "Whether it’s the citizens making enormous purchases of jewellery or central banks adding aggressively to their reserves, the gold-oriented action in the East is set to continue, and intensify, for the next 200 years."

A July 2 report from Bloomberg echoed this sentiment, emphasizing the unexpected strength of gold despite robust US real yields and a strong dollar. The report stated, "The precious metal’s 13% surge in the first half of this year was a surprise to many, especially coming as it did during an environment of robust US real yields and impressive dollar strength. But investors underestimate gold at their peril. Its buoyancy in the face of a resilient US currency signals further gains are likely, as does the relatively measured pace of its gains." The report also mentioned the growing demand from central banks, with the World Gold Council noting that about 20 central banks expected to raise their holdings, the most since the council started its gold reserves survey in 2018.

Barry Dawes of Martin Place Securities provided additional insights into the technical strength of the gold market on June 28. Dawes observed, "Gold holding above US$2300, wedge action in play, parabola still in place." He further commented on the technical resilience of gold, stating, "The resiliency of gold is very impressive. Trading tonight will be important for a weekly, monthly, and quarterly close will be important to watch. A strong close would be very good technically."

Catalysts Coming From This

Arizona Gold & Silver Inc. is leveraging these promising results to further explore and delineate the mineral resources at the Philadelphia property. As noted in the news release, the channel sampling results from the Rising Fawn claim, which revealed a potentially higher-grade core, are particularly encouraging for future drilling efforts. Greg Hahn, VP Exploration, noted, "The channel sampling in the recently uncovered adit revealed what is likely the higher grade core of the Rising Fawn section of the mineral system, where we have limited drill hole coverage. This higher grade area remains to be drilled."

Additionally, the RC drilling in the Rising Fawn Gap demonstrated the continuity of the gold-silver stockwork system, with further drilling planned to test the zone's down dip. Hahn added, "The drilling results in the Rising Fawn Gap demonstrate the gold-silver stockwork system continues towards the Perry portion of the mineral system with further drilling required."

In the Resaca Gap, drilling encountered primarily silver with low gold values, indicating the periphery of the mineral system. These findings will guide further exploration efforts to delineate both high-grade and bulk tonnage resources. The next phase of drilling aims to test the Red Hills target, with BLM approval recently received for diamond drilling up to 40 holes from two new drill pads, as per the company.

The company's stringent QA/QC protocols, involving independent analytical laboratories and strict chain of custody protocols, ensure the reliability of the reported results. The upcoming drilling phases and ongoing exploration efforts are anticipated to enhance the resource base and potentially expand the mineralized zones, driving further interest and investment in Arizona Gold & Silver Inc.

Experts Are Saying…

Technical Analyst Clive Maund expressed a highly favorable outlook for Arizona Gold & Silver Inc. in his June 17 report, suggesting that the company presented a compelling buying opportunity. Maund highlighted the technical resilience of the stock, noting that "the charts for Arizona Gold & Silver Inc. present a most encouraging picture of a stock that is building up to a major bull market yet still at a most attractive price."

Maund's analysis emphasized the company's strategic positioning and the progress made in its flagship Philadelphia Project in Arizona. He pointed out that the Philadelphia Property is located in the Oatman Gold Mining District, a region with significant historical mining activity. Maund stated, "The company has seen some very positive developments this year, with it reporting exceptional gold extractions (90 – 99%) from leach tests on the Philadelphia Gold-Silver Project in Arizona in May."

The addition of Philip Yee as a special advisor to the CEO was also noted as a positive development, with Maund highlighting Yee's extensive experience in the precious metals sector, having worked with successful companies like Eldorado Gold Corp., Kirkland Lake Gold Corp., and Patagonia Gold Plc.

Turning to the technical aspects, Maund observed that Arizona Gold & Silver's stock was exhibiting a strong parabolic uptrend, which he believed was driving the price toward a breakout above the key resistance in the CA$0.50 – CA$0.60 zone. He stated, "This parabolic uptrend is driving the price towards a breakout above the key resistance shown in the CA$0.50 – CA$0.60 zone and it has already had three goes at it already, the first being early in 2022."

Maund also emphasized the bullish volume pattern and the accumulation line, indicating strong investor interest and accumulation of the stock. He remarked, "The volume pattern is strongly bullish with predominant upside volume driving the Accumulation line steeply higher which certainly augurs well for continued advance."

Overall, Maund concluded that Arizona Gold & Silver Inc. was an "Immediate Strong Buy for all time horizons," citing the technical setup and recent positive developments as key reasons for his optimistic outlook on the stock.

Ownership and Share Structure

As for ownership of Arizona Gold & Silver, management and insiders own approximately 27.52% of the company. According to the company, 9% of the company is held by institutions, and 41% is held by family and friend investors. 

Arizona Gold & Silver has 77.09 million shares outstanding and 58.44 million free-float traded shares.

The company's market cap is CA$31 million, and its 52-week trading range is CA$0.27−0.59 per share.

Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Arizona Gold & Silver.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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