Arizona Eagle Mining Corp. Announces Commencement of Engineering Studies to Reopen McCabe Mine for Underground Drilling

Arizona Eagle Mining Corp. has engaged Hancon Mining Division USA Corp. under a pre-construction engineering agreement to reopen the historic McCabe Mine for underground drilling. The initial engineering phase is capped at US$391,344, with the profit margin portion, up to US$65,224, to be paid primarily in common shares to preserve cash. A broader mine reopening and rehabilitation budget is indicative at approximately US$3.7 million, requiring a separate agreement and subject to Board approval.

The Sooner Shaft was reopened in August/September 2026; camera surveys reached 1,620 feet with concrete and steel in excellent condition. Water testing confirmed suitable discharge quality. The company states it is "fully funded" to re-access underground workings, with initial engineering expected to complete by early 2027 and a Phase 1 underground drill program targeted for Q3 2027. Historical estimates from 1984 cite approximately 880,000 oz Au and 5M oz Ag, but the company explicitly notes this is not a current NI 43-101 compliant resource.

Arizona Eagle Mining Corp. (AZEM) announced a development that represents a logical, incremental step in its mine rehabilitation strategy, following surface sampling and Phase 1 surface drilling. The company claims to be "fully funded," but this designation applies strictly to the initial engineering phase rather than the full US$3.7 million reopening budget, creating a clear near-term capital requirement. Additionally, paying the engineering profit margin in shares introduces immediate dilution, with issuance expected in Q1 2027.

No new resource estimate, JORC/NI 43-101 compliant data, or production timeline is provided. The market has already priced in the progression from surface to underground access. The news is expected and aligns with prior management guidance regarding shaft rehabilitation and underground exploration.

Arizona Eagle Mining Corp. (AZEM) operates the Eagle Project in Yavapai County, Arizona, centered on the historic McCabe Mine. The project encompasses approximately 4,169 acres of Bureau of Land Management claims and approximately 420 acres of patented land, with the company holding a 100% interest subject to a 2% net smelter return, which includes a 1% buyback option for US$1 million.

The flagship McCabe Mine has a historical 1984 estimate of approximately 880,000 ounces of gold at 11.7 grams per tonne and approximately 5 million ounces of silver at 69 grams per tonne. The company emphasizes that this data is unverified and not compliant with NI 43-101 standards.

Infrastructure includes a 1,650-foot concrete-lined Sooner Shaft, 17,000 feet of underground workings, and permitted water wells. Management estimates the replacement cost of this infrastructure at US$30 million to US$40 million.