Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF) said it has completed the acquisition of the Sycamore Canyon epithermal gold-silver project in southeastern Arizona, positioning the asset for potential advancement through a future partnership.
The company said the 10 unpatented lode mining claims were acquired for US$40,000, securing full ownership of the property subject to annual BLM claim fees and a 2% net smelter royalty (NSR) retained by the previous owner.
Arizona Gold & Silver holds the option to buy back half the NSR for US$500,000.
The Sycamore Canyon project is located 25 miles from Safford, Arizona, a hub for multiple Freeport-McMoRan copper operations. The undrilled target hosts a prominent epithermal gold-silver system defined by a silicified breccia body measuring over 600 metres in length and up to 80 metres wide. Surface sampling has identified high-grade gold and silver values, including an outcrop sample that returned 31 grams per tonne gold, according to the company.
The company has filed a Plan of Operations with the U.S. Forest Service to permit drilling, though the process is currently on hold.
The company said it continues to drill at its flagship Philadelphia gold-silver project in northwestern Arizona, where 10 drill holes have been submitted for lab analysis. Another drill rig is currently operating beneath a previously reported high-grade intercept.
“With our primary focus on advancing the highly prospective Philadelphia gold-silver project, exploration work at Sycamore Canyon had been deferred,” said CEO Mike Stark in a statement.
“Having now completed the property acquisition, we’re well-positioned to unlock its potential. Surface results and geophysics have allowed for high-quality drill targets to be defined, presenting an exciting discovery opportunity for a potential partner.”