06:45 AM EST, 12/02/2024 (MT Newswires) -- Arizona Metals ( AZMCF ) on Monday released drill results from a new zone of mineralization called the Kay2 Zone at the Kay deposit in Arizona.

Highlights of the results include 20.1 meters at 3.6 grams per tonne (g/t) gold equivalent, including 1.4 meters at 7.9 g/t gold equivalent.

"A second significant intersection in the Kay2 Zone is very encouraging as we continue to test the extents of mineralization in and around the Kay deposit," said Duncan Middlemiss, president and CEO of Arizona Metals ( AZMCF ). "These recently drilled Kay2 holes will likely be included in our upcoming Mineral Resource Estimate which we plan to publish in H1 of 2025."

Separately, the company said it has decided to no longer pursue proposed spin-out transactions that were previously postponed in May.

Arizona Metals ( AZMCF ) had planned to seek shareholder approval for the spin-out of its Sugarloaf Peak gold project and a to-be-created net smelter return royalty on its Kay Mine project. Neither spin-out was voted on by shareholders or executed.

Management, in consultation with the board, determined that the proposed transactions are not in the best interest of the company given the current stage of its development and current capital market conditions.