Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Co. Has Big Drilling Plans for Au-Ag Asset in AZ

View Important Disclosures for this Article
Share on Stocktwits


The work at this past-producing project in a historical mining district is slated to start after the private placement, underway, is completed, an executive noted.

Arizona Gold & Silver Inc. (AZS:TSX; AZASF:OTC) plans to drill 20,000 feet at its flagship Philadelphia gold-silver project in northwestern Arizona soon and could release a resource estimate by year-end, Vice President of Exploration Greg Hahn said in a March 16 interview.

"We have drilled 110 holes in this and don't know where the end of it is," Hahn told Chris Temple, editor/publisher of The National Investor.

Arizona Gold & Silver's drilling at Philadelphia to date has been 81%-plus successful in intersecting the gold-bearing system in most of the target area, Hahn, also a geologist, pointed out.

Busy Year of Drilling Ahead

The VP described how the company would approach the upcoming drilling and expressed optimism about the outcome.

Plans call, he said, for reverse circulation drilling on the shallower portions of the mineralized system and then core drilling on the deeper parts. First, though, Arizona Gold & Silver needs to raise funds to cover additional drilling and thus is in the middle of a private placement to do so.

Once cashed up, the explorer will start infill drilling in the south end of the old underground workings, in the 500 meter (500m) area between the end of the shaft and where Arizona Gold & Silver has already drilled.

"We're pretty confident we're going to be able to continue that plus 81% success rate in drilling that area," commented Hahn.

Chris Temple of The National Investor pointed out that Arizona Gold & Silver has outperformed its peers in the last couple of years.

Then, once the company receives the necessary permit from the U.S. Bureau of Land Management, expected next month, it will drill the Red Hills target also in the south.

Hahn described the geology at Red Hills as being slightly different than elsewhere on the property. There, the mineralization is primarily spread out over a substantially large, 100m-thick area.

"We now have 121 claims covering a lot of that alteration that looks identical to what's sitting on top of our 100m intercepts," noted Hahn.

Elsewhere, the mineralization runs through three levels and has a different grade profile in each. In the top level, grades are high; in the middle level, grades are lower but still good; in the bottom level, grades are low.

"We call it a sandwich," Hahn added. "In the middle of the sandwich is stockwork quartz."

Pursuing Even Better Metallurgy

Hahn also discussed metallurgy at Philadelphia. Initial testing showed that with milling, gold recovery rates were between 94% and 98%. These were consistent with historical results. Testing also revealed that the ore at the project is clean, free of deleterious metals, including arsenic, antimony, and mercury, and free of copper and zinc.

Now, Arizona Gold & Silver is evaluating the possibility of heap leaching versus milling material at Philadelphia as the former process is more cost-effective than the latter. Specifically, the company is conducting a heap leaching assessment over 100–120 days. As 30 of those days have passed, results will be available in about three months. This new testing compares to 18 days of heap-leach testing done historically, which resulted in 50–60% extraction rates.

"We're pretty confident we're going to be able to duplicate that and exceed it," Hahn said.

Optimally Located in Mining District

The geologist also talked about Philadelphia's location in Arizona, a state more associated with copper production than with gold and silver production. The project is in the Oatman mining district, which has produced more than 2,500,000 ounces of gold to date.

"We don't think it's anywhere close to seeing what the true potential of the district is," said Hahn, adding it remains underexplored for precious metals. "It's an exciting district."

Two currently producing gold projects in the Oatman are Northern Vertex's Moss open-pit, heap-leach operation and Aura Resources' Gold Road underground mine and agitation leach operation.

As for Arizona Gold & Silver's Philadelphia mine, it was in production from 1900 until just before the start of World War II, Hahn said. Records indicate the break-even cost then was about 0.25 ounce. Once the operators could no longer find 0.25-ounce material in the area they were mining, they shuttered the project.

Recommended as a Buy

Two mining experts view Arizona Gold & Silver favorably as an investment.

One is Temple, who said during his interview with Hahn, "Out of the universe of so many junior exploration stocks, there is one that made it to the top of my list, so much so that I quite a while ago recommended that our members of The National Investor take positions in it as I've done."

Temple pointed out that Arizona Gold & Silver has outperformed its peers in the last couple of years. He attributed this to Philadelphia's unique geology and the low number of shares the company has issued to date. He also likes that insiders have skin in the game.

"There are all kinds of small exploration companies out there. Some have got more promise than others," Temple said. "I think this is one that has got the potential to deliver something that you don't see every day."

Technical Analyst Clive Maund wrote in October 2023 that Arizona Gold & Silver was at a good entry point for investors. At the time, it was trading at about CA$0.34 per share, but now it is trading a little lower.

streetwise book logoStreetwise Ownership Overview*

Arizona Gold & Silver Inc. (AZS:TSX; AZASF:OTC)

*Share Structure as of 11/28/2023

"The price appears to be in the late stages of completing a double bottom with a very positive price:volume pattern," Maund wrote. "It's still at a very good price."

Further, Maund pointed out, the share price was readying to advance, as indicated by the stock's trading pattern over the previous six months.

Ownership and Share Structure

As for ownership of Arizona Gold & Silver, management and insiders own approximately 27.52% of the company. According to the company, 9% of the company is held by institutions.

41% is with family and friend investors. 

Arizona Gold & Silver has 71.76M shares outstanding and 53.19M free float traded shares.

The company's market cap is CA$26.96 million, and its 52-week trading range is CA$0.27−0.59 per share.

Want to be the first to know about interesting Gold and Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Arizona Gold & Silver Inc.
  2. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Want to read more about Gold and Silver investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe