Vancouver, British Columbia / Jan. 29, 2020 – Arizona Silver Exploration Inc. (the "Company" or “Arizona Silver”) (TSX-V: AZS) (OTCQB: AZASF) is pleased to announce that it has entered into a purchase and sale agreement covering the 11 unpatented mining claims currently covered under a lease with option to purchase agreement on the Philadelphia project.
Philadelphia is a high-grade gold and silver vein target located in Mohave County, northwestern Arizona. Core drilling at the property in October 2019 intersected high grade in the last hole of the 2019 program, PC19-2T (Press Release dated November 13, 2019), which is a continuation of the high-grade vein intercept in RC hole PRC19-2 completed in May (Press Release dated May 15, 2019). The high-grade zone is associated with strong silicification and clay alteration and magnetite-destruction peripheral to the vein. An airborne UAV magnetic survey identified a large magnetic low north of the existing drill hole intercepts that will be tested by an upcoming drilling program.
Purchase and Sale Agreement
The Purchase and Sale Agreement completely replaces and supersedes the Lease and Option Agreement on the property entered into in February 2019. The terms of the Purchase and Sale Agreement call for a cash payment of US$20,000 and issuance of 250,000 common shares of the Company to own the property 100% outright with no further annual lease payments or buyout expenditures (the “Transaction”). The Seller will retain a 1% NSR royalty on the 11 unpatented claims covered by the Purchase and Sale Agreement.
The Purchase and Sale Agreement and Transaction are subject to the approval of the TSX Venture Exchange. All common shares issued are subject to the statutory 4-month hold period from the date of issuance.
The Company also announces that it has granted options to a director to purchase 125,000 common shares with a strike price of $0.16 and a maturity date 5 years from the date of grant.
Initial 2020 Drilling Program
Harris Exploration Drilling has been contracted for up to 3000 feet of reverse circulation (“RC”) drilling on the project. The drill and crew will mobilize from their current job site around February 1, with drilling expected to commence the week of February 3. Currently 10-12 holes are planned between the nine previous gold-bearing drill intercepts and state highway 68. An additional 10 holes have already been permitted and bonded in the event drilling results encourage us to keep going. The drillers will use a center-return bit, and the anticipated mineralized interval will be samples on 2-ft. sample intervals to maximize sample return and assay control on any high-grade mineralized zone.
Greg Hahn, VP Exploration, and a Certified Professional Geologist (#7122) is the Qualified Person under NI43-101 responsible for preparing and reviewing the data contained in this press release.
Please refer to our web site for additional and complete news and updated images on Philadelphia property. www.arizonasilverexploration.com
The agreement may be subject to approval by the TSX-V Exchange as it involves the issuance of shares in the Company.
On behalf of the Board of Directors:
ARIZONA SILVER EXPLORATION INC.
Mike Stark, President and CEO
Phone: (604) 833-4278
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties. Forward-looking statements in this news release include statements in relation to the timing, cost and other aspects of the 2020 exploration program; objectives or expectations of the Company. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
