Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF, FRA:A9J0) announced that it has received approval from the US Bureau of Land Management (BLM) to expand exploration activities at its Philadelphia gold-silver project in northwestern Arizona.
The company said that the approval covers modifications to its existing Exploration Plan, including the construction of 16 new drill pads, associated sumps, and access roads. The planned work is expected to result in approximately 14 acres of disturbance.
According to Arizona, the proposed activities were previously evaluated as part of the Environmental Assessment for the Exploration Plan. The BLM determined the changes constitute a minor modification and will remain subject to the terms and stipulations of the existing plan.
Arizona said that it has obtained all required drilling approvals and submitted the necessary bond. The company is awaiting final administrative confirmation from the BLM before beginning construction of drill roads and pads.
The approved drilling program is designed to test several exploration targets, including the down-dip extension of high-grade gold-silver mineralization encountered in drill holes PC25-156 through PC25-159, the 1.5-kilometer strike length of alteration along the southern extension of the Arabian Fault, and a Controlled Source Audio-Frequency Magnetotellurics (CSAMT) geophysical anomaly identified in 2023 beneath the altered and iron-stained Red Hills area.
The company plans to begin the program by drilling below hole PC25-156. That hole previously intersected 20.43 metres grading 9.04 grams per tonne (g/t) gold and 34 g/t silver within a broader interval of 60.37 metres grading 4.36 g/t gold and 6.38 g/t silver.
Arizona CEO OfMike Stark highlighted the company's financial position and the significance of the permit approval.
"The timing could not be better. We are well funded following our recent $18 million private placement with Sorbie, completed at a premium to market, together with approximately $4.8 million currently in treasury,” Stark said.
“Management and shareholders have been patient throughout the permitting process, and with this milestone achieved, I anticipate more than two years of active drilling ahead of us.”
Stark added that the upcoming exploration campaign will focus on both resource expansion and district-scale evaluation.
"This program will test the southern extension and down-dip potential of the Perry Zone, as well as the Red Hills target, while ongoing mapping and surface sampling continue to evaluate the district-scale potential of the project,” he said. “We believe we are only beginning to understand the full scope of this highly prospective mineralized system."
Shares of Arizona Gold & Silver gained nearly 22% by Tuesday afternoon.