Zinc miner called ‘exciting’

Calling it the “hottest deposit under the Arizona Sun,” Raymond James said in an investors note Monday that Vancouver- headquartered Arizona Mining Inc. presents one of the “most exciting” investment opportunities in the base-metal sector.

Analysts for the financial services firm said that one of Arizona Mining’s two major zinc projects, located in its namesake U. S. state, has the potential to become one of the 10 largest undeveloped zinc deposits in the world.

Raymond James gave the company an initial $ 3.50 target price, above its price Monday of $2.60, and said it expects it to outperform its sector.

With a market capitalization of $595 million and $21 million in debt, Arizona Mining is involved in the exploration and development of two fully owned deposits south of Tucson, together known as the Hermosa Project.

Of the two, the Central Mn- Ag deposit is more advanced, with feasibility studies completed in 2014, However, it has taken a back seat to the newly discovered Taylor Zn-Pb-Ag deposit.

The promising Taylor deposit has yet to complete a feasibility studies, but Raymond James analysts said the firm expects future updates to add incremental value to Arizona Mining and drive its share price higher.

Arizona Mining is currently making headway in expanding its drill count to 15 from 10, and is expected to complete an updated resource estimate in January, with a feasibility study to follow later in the first quarter of 2017. These upcoming milestones lead Raymond James’ analysts to determine the company will likely add incremental value and see its share price rise in the next several months.