Arizona Mining Inc. (TSX:AZ) is advancing the world-class Hermosa-Taylor zinc-lead-silver carbonate replacement deposit in Arizona towards a feasibility study in mid-2018. The Taylor deposit hosts a growing high-grade resource with district exploration potential in a safe and proven mining jurisdiction. Key state permits are expected around year-end 2017, and will position the Company to start ramp excavation in Q2 2018. Initial production is expected in late 2020 at first quartile costs.
The Taylor Deposit has a resource of 8.6 million tons in the Measured Mineral Resource category grading 9.7% zinc equivalent (ZnEq), plus 63.8 million tons in the Indicated Mineral Resource category grading 10.6% ZnEq, and 38.6 million tons of Inferred Mineral Resources grading 11.6% ZnEq, reported in accordance with NI 43-101 guidelines utilizing a 4% ZnEq cutoff grade. A preliminary economic assessment was completed in April, 2017 which showed a 42% IRR, a US$1.26 billion NPV8% and a 1.7-year payback based on long term metal price assumptions of $1.10/lb zinc, $1.00/lb lead and $20/oz silver. The Taylor Deposit remains open to the north, west and south over land controlled by the Company and will be aggressively drilled to test the limits of the resource.