Arizona Gold & Silver Jump Starts Philadelphia Exploration After Evolution Mining Takes A C$12 Million Stake

0:00Arizona Golden Silver is advancing the Philadelphia Project in Arizona's Oatman Mining District, a region with roughly 2.5 million ounces of historic gold production. During the long Philadelphia 3-kilometer gold silver system has returned wide, high grade intercepts, including a core running at 19.37 grams per ton gold, over 4.33 meters. The company also holds early stage projects in Nevada and Arizona. Last month, Arizona Golden Silver announced an investment by Evolution Mining, a senior Australian gold producer. It took a strategic stake in Arizona paying 12 million for a 9.9 percent stake. Mike Stark is CEO of Arizona Golden Silver Mike.

1:00Welcome to Mining Stock Daily. Thank you, Michael, and thank you on a weekend as well. Thank you very much. Thank you for making time. Now, Philadelphia is your flagship project, Mike. You announced a number of high grade intercepts. Currently you're drilling to test whether that grade and thickness continues further down dip than a long strike. What have you found so far, Mike? We're really pleased with what we're seeing, Michael, and it's only going to get better because we've now increased the amount of drilling time we've gone to a 24-hour shift on this particular area, and it hasn't let us down. We're waiting for results, as you can well imagine, but no. Couldn't be happier right now. This drill bit seems to continue to find grade that we're very pleased about. Talk about grade and continuity that you're seeing along this. You did have a February announcement just talking about you seeing some structural complexities. Yes.

2:01We've got now under current known is 1.5 kilometers of continuous strike. We are looking to do the remainder of 1.5 kilometers with this new BOM permit, which will extend it to over 3 kilometers in continuous mineralization along strike. That's called the Arabian fault, by the way. What do you... How many drills have you got turning there right now? We have one. We just advanced that to 24-hour drilling, and we're in current negotiations for a second rake. That will be an announcement, I hope, in the coming weeks that we can announce to our shareholders. But at this point, instead of just reporting one hole at a time, we'll be able to do multiple holes at a time with the expediency of 24-hour drilling. Looking ahead right now, how much more drilling are you going to be doing and what type of drilling are you going to be doing? We're strictly core now, Michael. Look, it's something that we've had a lot of discussion over. The fact is, the people that have the interest in the company only want to see core, and

3:06I understand that. Core is the Bible. It's the truth. When you start dealing with RC, there's so many parameters. It's a great exploration tool. We're beyond exploration. Now we're going to make this defined. The people that are looking are very pleased with not only what we see, but what the core is showing them. There seems to be, and we've used this term many times, a long ways to go on this vein. This is a vein on the red hills, by the way, called the Parabane. There's a long ways to go. The textures that we're seeing are still not with both Greg and Lex want to see. They want to see deeper down. That could, and I'm always using the phrase carefully because you never know until you drill it, could potentially be deeper into the boiling zone where the rich environment lives. Geology, can you explain a bit more about the boiling zone, Mike? You know, not being a geologist, but I'll make it in simple terms. The boiling zone is something where all the gold is actually comes to the surface, is

4:10found. So in the history books, the Open District, the Open Mind, came down to a level where they intersected a very large, rich area, which happened to be 1.1 ounces, 26 feet thick. That would be called the mineralization heart. And we have yet to see that in the textures that we have found so far. And we're only down 1400 feet, vertical fleet, that is, at this point. There's been several comments that this vein looks like we could be going to 28, maybe more, 2800 feet. With the textures they're seeing right now, it is nowhere near the bottom. Let's turn to your funding. In late August, you announced a 12 million strategic investment by Evolution Mining, which took that 9.9% stake in your company. For the terms, Evolution gets a board, see it observer, be on the technical committee. It has a refusal on sale, 20% are greater on Philadelphia.

5:13Where is the deal going right now with Evolution? Very pleased to have them on board. Look, a $25 billion dollar company taking an interest in a junior, it could not be more flatter, but I'm also flattered at the vision that these people have. They see they're in line with us on what the potential here, and that excites me because then you're given to somebody that has not only developed, they have foreproducing gold, excuse me, foreproducing mines in Australia, excuse me, and one here in Canada and Ontario, Evolution is hungry, looking to expand. The only way to do that is you go out looking for next opportunities. One of the things that was talked about was, hey, we're looking seven years out for mine development, and I really, really enjoy that. That's the focus is how do we build this, how do we get involved, but more importantly, they want safe jurisdictions. They don't want to be plagued with permitting issues, government issues, and they don't

6:16have that here, nor do we see it at all. But what I'm really impressed with is the opportunity they see, the vision that we have is shared by them. They think this is going to be a very good, substantially, possibly a very large deposit. If that's the case, they want to be first in. So we're working with a very burst, very qualified group, and the fact that they want to help on the technical committee is an extreme, please. Now we'll have foreheads making these decisions. We're just, I mean, I won't have to go into detail on who, but we just formulated the team. So the team will hopefully be working together very, very soon. And as a result of that, now you have four qualified people looking at where to drill, what's the next best opportunity? They're having new data provided to them all the time, light are, and that is just the beginning. The board seat is in the future. It's not right now, but it's in the future.

7:17And I welcome that as well. Look, again, it's help building. This is a very big robust system that we've only scratched the surface on. The Eastern anomaly, which may or not be known to many, is 15 times larger than what we're currently working on right now. That's an intriguing opportunity for shareholders. Now you also announced the Sorby financing in the spring. That was an 18 million dollar financing as well. So what is your current cash position, Mike? Our current cash position is very, very, very, very well. Look, we were originally working with one to two million dollar exercises. And now we have in the banks, sorry, right now is about 16 million. And the Sorby deals is starts to inject this month. And that'll be 750 a month for 24 months. And what I'm going to key on here, both these groups paid a premium to the market price.

8:20And what I'm more excited about, evolution being first in as a potential developer here and potential long-term investor, they paid a 60% premium above the share price to get involved. I think that should really resonate to people that this is something that they see as got great, great growth potential. And the opportunity here is now. We talked earlier about having the one drill rig and then potentially adding on a second. There's a lot of money that's flowing into the sector right now. Mike, what has it been like in terms of being able to get back your assays? Our assays are good. Why is this meaning in timelines in terms of kind of showing advancement? Yeah. And because of what we see, we put these on a rush. So our timeline is very, very quick. Normally, there could be as much as a two and a half, three month weight in our case, it's less than a month.

9:21And I'm very pleased about that. But we see the value and getting this information back to shareholders quickly. Believe me, it also helps us. Lex Greg, everybody on the team define, hey, you know what? Now that we see this grade, we got to go here. We got to go here. And that helps the team make better decisions. Not that we've ever missed. And this is a qualified statement. We have not missed in a long, long time. So these guys are doing a great job. Philadelphia is your flagship, but you do have other projects. You have the Silverton Antimony Gold Project and about a SICKMORE Project in Arizona. How are you judging in terms of like what resources you're allocating to these projects, these of the Philadelphia? You did announce a 27 hole drill program for Silverton and June. Yeah. Let me talk about Silverton. The results are in the lab on that. There's 11 holes that will be reported on, not 27, but 11. And once we get those back, we'll be releasing them.

10:21It is the focus on Silverton was right back to day one while why we took the property was a carlin style deposit. The Antimony at the surface further qualifies that this has something deep rich in it. And that information that will get back from the lab will help us assist on that. So it is a secondary project, but we wanted to start some wheels turning on it. We will wait for those results to come back to define what the next steps are. And then if you wish, SICKMORE Canyon is something that we were originally starting out with until Philadelphia came along and Philadelphia of course is taking almost all of our attention. And there's for good reason. Look, we have a lot to see from a perspective, we've looked at just over 80, 85 acres out of 3,600 acres. It really deserves our full attention and we're giving it. That's the best reward we can give our shareholders right now.

11:22How's the community around you? I believe Oatman described itself as a living ghost town on Route 66 at Citrusm Town. It is. It's a delight to see I encourage people if they're down in the area, you got to drop in. I mean, talk about stepping back in time. The old original buildings are still there. You walk into the bar and there's dollar bills stapled to the wall. And not one, I'm talking thousands of dollars on the wall. I asked the lady behind the bar and I said, can you give me any idea how much money is on the wall here? And she said, I have no idea. We actually had a total back like 1980. She said, here we are 40 years later. It's amazing to see that. It's amazing to see the lifestyle that had to be brought into that area to live in the heat during the summer months. They're miles away from the infrastructure. Miles in that day. Today, it's only six miles away from anything you want, whether that's Home Depot and the

12:25Donald Starbucks. It's all there. So the infrastructure that we have within miles of us is incredible. And I'll touch on a couple of other things. The power, it runs not only over top of the property along the side of the property. Water. We've actually to have our own water well. So we have water supplying. So we're not having to run or truck it in. And the biggest one is access where other companies, again, just because of situations, they have to helicopter crew, people, personnel in or equipment in. We literally drop in off an old state highway. And the new highway, highway 68, which is four lanes, drops red on to our driveway. We drive right down the middle of our property. Access is incredible. Year round drilling, it's got all the components. And we are in a mining friendly jurisdiction. Arizona being in my mind, the number two jurisdiction in the world for safe, friendly operations. We have the Moss Mine six miles away operating.

13:28And then we have Gold Road, which is 14 miles away operating. So yeah, from a jurisdictual point of view, we have all the goods. Can you talk about your runway? Sure. Be glad to. I've never had this before, Michael. And I'm really, really happy and pleased about it. The finance seems that we've now completed gives us an extremely long runway before any financial needs will be needed. And approximately two, two and a half years, but even longer potentially, because every single warrant and auction is in the money. That presents about another 14.6 million coming into the treasury. So shareholders should be extremely pleased right now with that income, with what current treasury is available. There'll be no financing's needed in the near future. Matter of fact, it's a two and a half year runway that could be extended. And that does not include the sorbby warrants or the evolution warrants. So that will be on top of that, which would represent again, another very large amount

14:30of money coming in. Lastly, Mike, kill, key milestones, 2026, 2027. 2026. Get to hopefully down to about 2,000 feet on this vein. So approximately another 6,500 feet of drilling to do to get three rigs on the property by the end of this year is another goal that I have and it's shared by management as well. Whether that would be two core rigs and an RC rig that's yet to be determined. And again, what we would do with maybe with that RC and it could be core is go down south. Let's start exploring south on the property extending this to three kilometers in strike length. And then the other goal is to get some permitting done on that eastern section with the new data that we have been provided with. It's further defining where we need to put the permit in to say we're drilling here.

15:32Mike Stark, thanks to speak with mining stock daily. Thank you very much Michael. Appreciate the time. And again, on a weekend, all the better. Thank you. The information presented should not be considered investment advice. Mining stock daily in affiliates are not responsible for any loss arising from any investment decision and connection with the material presented herein. Please do your own research or speak with a license of financial representative before making any investment decisions.