A view of the Kay project site. Credit: Arizona Metals.
Arizona Metals (TSX: AMC; OTCQX: AZMCF) shares plunged to their lowest level in more than four years after a long-awaited initial resource estimate for the company’s Kay polymetallic project revealed a smaller-than-expected scale.
The resource outlines 9.28 million indicated tonnes grading 1.39 grams per tonne gold, 27.6 grams silver, 0.97% copper, 0.33% lead and 2.39% zinc, Arizona Metals said in a statement Monday. Contained metal totals 415,000 oz. gold, 8.25 million oz. silver, 197.9 million lb. copper, 67.3 million lb. lead and 490.1 million lb. of zinc. Kay is located in central Arizona.
“Relative to our expectations, grades were slightly better than anticipated, though tonnage disappointed, and more than offset,” BMO Capital Markets mining analyst Rene Cartier said in a note. Investor expectations relative to the project’s size were…
