Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF, FRA:A9J0) earlier this week announced that it has secured a Bureau of Land Management (BLM) permit allowing the company to expand drilling at its Philadelphia project in Arizona, opening the way for a significant new phase of exploration.
Speaking with Proactive, Senior Vice President of Exploration Lex Lambeck said the permit represents an important milestone, enabling Arizona Gold and Silver to establish 16 new drill pads through a minor modification to its existing environmental assessment.
Lambeck explained that the immediate focus will be on the Red Hills area, where the company plans to test the down-dip extension of the Perry Zone following encouraging results from earlier drilling, including holes 156 through 158. He added that each of the upcoming drill holes is expected to evaluate both the deeper extension of the high-grade epithermal system and a potential bulk-tonnage target within Red Hills.
According to Lambeck, geological evidence suggests the company has so far only drilled the upper portion of the mineralised system. He noted that extensive hematite alteration across Red Hills is consistent with hydrothermal activity originating at depth, supporting the rationale for deeper drilling.
Beyond Red Hills, Lambeck said the newly permitted drill locations also provide access to approximately 1.6 kilometres of strike south of the Perry Zone. This gives the company multiple opportunities to test whether the mineralised structure continues along strike, representing an additional exploration catalyst as drilling progresses.
Lambeck described the permit approval as the beginning of a broader exploration campaign at the Philadelphia property, stating, "The project is literally only just getting started to really explore that district scale potential of the Philadelphia property."
Another near-term catalyst is the commencement of drilling itself. Lambeck said the company is fully funded for the programme and confirmed that drilling equipment is already moving into position.
With permitting complete, financing secured and multiple high-priority targets ready to be tested, investors are likely to focus on results from the forthcoming drill campaign. The expanded access to Red Hills and the southern extension of the Perry structure provides Arizona Gold and Silver with several opportunities to demonstrate the scale of mineralisation across the Philadelphia project in the months ahead.