Because this is potentially a major development and apparently several folks weren’t clear on what was meant by what Michael said in the Arizona Metals (AZMCF) comment below, I have also included a text commentary from him on what he was implying in the video:
“On Sugarloaf the company has a historical resource of 1.5mm oz at 0.5g down only to 70m depth
The company has already drilled it to 120m deep and found all oxide gold mineralization continues there so making a deeper open pit would take you to 2MM oz plus of Oxide Gold
Oxide Gold is important because it is easy to pull out of the rock. Usually you can get 90-92% of the gold that is in oxide rock into gold production.
Now where it gets really interesting is that they drilled another hole to 500M deep that show that there was gold all the way from surface to 500M deep, the gold below 170M was all sulfide mineralization which usually is harder to get out of the rock without expensive plants and CAPEX to extract it, but sometimes you are able to extract the gold using “heap leach” technology essentially the same thing you do for the oxide material
They have been doing testing for the last 6-9 months to see if the Gold in the Sulfides below 170M can be extracted using heap leach.
If that works then the deposit could grow from 2MM oz of Oxide to 10MM plus in total oz 2-3mm of Oxides and 7MM or more oz of Sulfides.
There is no shaft here would all be open pit mining with low CAPEX and potential high returns.
A deposit of this size in Arizona on top of Kay, which is already amazing, would really turn some heads.
I’m told we could get the results on Sugarloaf metallurgical studies in September.”
