Philadelphia Property


The Philadelphia Property


The Philadelphia Property is located in Mohave County, in northwestern Arizona.  The region is home to the Oatman Mining District, which has produced over 2.5 million ounces of gold from high-grade veins from underground mining. It is currently the location of active gold mining operations by Northern Vertex at the Moss Mine open pit heap leach operation, and by Aura Resources at the Gold Road underground mine and agitation leach operation. The Philadelphia property is located approximately 6 miles from the Moss Mine and 10 miles from the Gold Road mine.

On Jan. 29, 2020 Arizona Silver Exploration Inc. announced that it had entered into a purchase and sale agreement covering the 11 unpatented mining claims currently covered under a lease with option to purchase agreement on the Philadelphia project.

On November 12, 2020 the Company announced that it has bought out the existing 1% NSR on the Philadelphia property.

The Philadelphia property, now comprised of 20 claims, is 100% owned by Arizona Silver Exploration, and the property is now free of all financial obligations.


Exploration


Fall 2020 Drill Program

  • Drilling Underway

Summer 2020 Drill Program

Highest grades of gold, silver, and beryllium encountered to date in hole PC20-37, as follows:

  • 33.56 grams/tonne (gpt) Au and 54.7 gpt Ag over 2.35 metres, within a thicker interval of 10.76 metres containing,
  • 9.26 gpt Au , 79.8 gpt Ag, and 344 gpt Be beginning at a depth of 27.96 metres.

All five of the other core holes from the initial 2020 drilling program returned excellent gold and silver and beryllium values in the target vein adjacent to and down-dip from previously announced high-grade gold-silver drill results on the Philadelphia vein.

  • 13.3 grams/tonne (gpt) Au and 179 gpt Ag over 1.5 metres, within a thicker interval of 9.3 metres containing,
  • 3.3 gpt Au and 80.7 gpt Ag, beginning at a depth of 2.9 metres immediately below alluvium.
  • 11.7 grams/tonne (gpt) Au and 212 gpt Ag over 0.76 metres, within a thicker interval of 5.6 metres containing,
  • 3.5 gpt Au and 173 gpt Ag, beginning at a depth of 26.9 metres.

2019 Fall Drill Program

Results from the 2019 Fall Exploration Program Core drilling  intersected high grades of gold-silver mineralization along strike to the north from historic high-grade underground production on the Philadelphia vein as follows:

  • 41.6 grams/tonne Au and 94.4 gpt Ag across 0.76 metres, from 10-10.76 metres,
  • 23.47 grams/tonne Au and 97.2 gpt Ag over 2.3 metres, from 8.5-10.76 metres,
  • 6.11 gpt Au and 81.9 gpt Ag from 4-17.4 metres,
  • followed by 1.12 gpt Au and 20.3 gpt Ag from 22.9- 32.9 metres,
  • total intercept of 3.97 gpt Au and 55.4 gpt Ag from 4-32.9 metres in core hole PC19-2T.
  • 5.75 g/t Au and 54.2 gpt Ag over 1.2 metres in core hole PC19-7.
  • Target gold-silver mineralization was also intersected in the third core hole

Click to Enlarge Images

Section 100N enlarged – RC holes completed to test offset of main vein

Section 300

Section 200

Section 400


Drill Core from the Summer and Fall 2020 Drill Programs



History

Arabian-Philadelphia Mine

The Arabian-Philadelphia mine was initially developed around the turn of 19th century. By 1915 several shafts had been developed, the principal one being the Phialdelphia#2 shaft, located on the leased claim group, which was developed initially to the 300-ft. level down the inclined shaft. Old reports by mining engineers state that the mine ramped up to a steady production rate of 50 tons per day for five years, mining primarily one large stope between the 100 and 300-ft levels, with material being hauled to the Katherine Mill which was located a distance of 8 miles to the northwest. By the late 1930s the shaft had been deepened to the 500 ft. level, where diamond drilling was conducted to test the vein below the 500-ft. level. The vein was reported intersected down to the 700-ft. level with no apparent change in the grade or thickness of the vein. Production records are inconsistent, but the mine apparently produced between 50,000-75,000 tons at an average grade of 0.3-0.79 opt (10-27 gpt) Au. Silver production grades were not recorded, but more recent but still historical sampling in the Philadelphia#2 shaft demonstrates an average grade of 12.25 opt (420 gpt) Ag accompanying an average gold grade of 0.341 opt (11.69 gpt) Au, for a combined gold equivalent grade of 0.485 opt (16.63 gpt) Au(eq). Historical production grades may be in gold equivalents, as they were reported in USD/ton when the gold price was US$20/ounce and silver price was US$0.50/ounce.

The mine operated intermittently until 1941 when it was closed by the War Order Act, which closed all non-essential mines in the US in order to focus resources on supporting the World War II effort. The mine reportedly produced about 35 gallons per minute of water, and flooded to approximately the 100 level during the shut-down in the 1940s. It has never been dewatered.

A second shaft (Philadelphia #1) was sunk on the vein about 300 feet north of the Philadelphia#2 shaft and went initially to the 90 ft. level only, and later deepened to the 120-ft. level, where it encountered water.  Drifting south to the Philadelphia #2 shaft and northward about 150 ft  from this shaft was reportedly done entirely in the vein, with grades reported up to $20/ton (with gold at a price of $20/ounce this would have been +1 opt (+34 gpt) Au material). One cross-cut across the vein reported showed the high-grade vein was 15 feet (4.5 metres) wide within the mineralized zone that was 40 feet (12.2 metres) wide. Very little development beyond the 90-120 ft. level drift was done.

Geology

The high-grade vein is hosted by the Arabian Fault, a NNE-trending fault that may be a cross-over fault between two prominent WNW-trending faults. The Arabian Fault is concave to the east. The vein dips at 55-60 degrees to the east and is localized on a rhyolite dike which was intruded into the fault that separates megacrystic granite in the footwall of the faults from flow-banded rhyolite and tuffs in the hanging wall of the fault. Alteration in the footwall is strongly propylitic and alteration in the hanging wall is illitic. This is similar to alteration in the Oatman gold deposits. Silicification is dominant in the immediate vicinity of the high-grade vein. Lower grade gold (and silver) carries into both the hanging wall and footwall for distances up to +5 metres each.

Land Status and Permitting The unpatented lode mining claims are located on BLM-administered public lands.  An introductory meeting was held with the local BLM office in Kingman, Arizona where the BLM was introduced to the Company’s presence and the Company’s plans to do an initial drill test for the continuity of high grade northward from the old production stope towards the Philadelphia#1 shaft.  Surface disturbance will be minimal (<0.1 acres), which falls well within the 5-acre exclusion for a Notice of Intent permit.  An initial Notice of Intent will be filed with the BLM before the end of February with the expectation that we will have a permit to drill and reclamation bond in place with the BLM by early April, Arizona Department of Water Quality permits in place, and a drilling contractor lined up by mid-April.

Exploration Plan The current plan is to drill a fence of 5-6 reverse circulation (“RC”) holes between the Philadelphia#1 and Philadelphia #2 shafts to test the continuity of the high-grade vein between these two shafts and down to a depth of about 150 meters.  Success in this initial effort will require additional drilling, mostly with core, to continue to test the strike and dip extensions of the vein. Greg Hahn, President and CEO and a Certified Professional Geologist (#7122) is the Qualified Person under NI43-101 responsible for preparing and reviewing the data contained in this summary.