Junior Miner Discovers 9.86 g/t Gold at Tombstone Project in Arizona

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Aztec Minerals Corp. (AZT:TSX.V; AZZTF:OTCQB) announced the results from an additional five drill holes from its 2025-2026 reverse circulation (RC) drilling program at the Tombstone Property in Southeastern Arizona, according to a March 2 release.

The program, which has completed 53 RC and five core drill holes, has successfully expanded the mineralized zones at the property, particularly in the Contention pit area, linking the Main and South target zones with the Westside and Westside Anticline target areas.

The final five RC holes drilled in 2025 have shown significant results, with drill hole TR25-34 intersecting 40.2 meters averaging 1.09 grams per tonne gold equivalent (g/t AuEq), including a high-grade segment of 4.6 meters of 9.861 g/t AuEq. Another notable drill hole, TR25-36, intersected 44.1 meters averaging 0.86 g/t AuEq, including a high-grade segment of 6.1 meters averaging 3.724 g/t AuEq. These results have extended the Contention Au/Ag (silver) zone over a kilometer north-south on strike and approximately 0.4 kilometers in width into the Westside area.

"Today's announcement of successful step out drilling in the Westside target area of the Tombstone property marks a significant milestone for the project," Chief Executive Officer Simon Dyakowski said.

 He highlighted the extension of the Main Contention Zone's strike length to over one kilometer and its width to over 350 meters. He also noted the shallow gold-silver oxide mineralization encountered in drill hole TR25-36, which further extends the target area to the west.

The core drilling portion of the program continues in 2026, with ongoing drilling in the third deeper core hole TC26-02, targeting a strong NSAMT anomaly in the southwest of the property. Despite challenges such as drill hole caving, which terminated one of the drill holes above the planned depth, the drilling has confirmed the presence of skarns and sulfides, indicating the potential of the NSAMT targets, the company said.

Overall, Aztec Minerals continues to expand and define the mineralization at the Tombstone Property, with ongoing drilling expected to further delineate the resource and enhance the project's scale as part of the largest ever drill campaign at the site.

Fan Grid Pattern Tests Mineralization

Aztec said it continues to make significant progress in its 2025-2026 drilling program at Tombstone. The program is strategically designed using a "fan grid pattern" that has been in place since 2020. This pattern is crucial for exploring extensions on the western, eastern, and southern borders, as well as beneath the north-trending main Contention target zone, which includes the historic underground and open pit Contention mine.

Several RC drill holes have also targeted the Westside area, focusing on projected anticline, dike, and fissure vein intersections under mineralized outcrops and historic shafts. The drilling has successfully identified depth and horizontal extensions of pervasively oxidized and hematite-rich, silicified hydrothermal breccias composed of quartz feldspar porphyry dike and Bisbee Group clastic sedimentary fragments, which are typical of the materials historically mined at the Contention Mine, the company said.

The current drilling has further delineated additional types of mineralization, including manganese replacements in limestone beds and skarns, quartz veinlets, oxidized sulfide relicts as disseminations, and silicification of altered hornfels. The deepest RC hole drilled in the 2025 program, TR25-09, reached a depth of 274.4m and remained in mineralized and oxidized rocks for most of its length, indicating that the mineralization in the Contention area is still open at depth and expanding.

The RC and core drilling program for 2025-2026 is primarily targeting shallow zones associated with surface exploration and 3D geological modeling, aiming for wide oxide gold-silver mineralization and drilling pre-collars for deeper CRD targets, Aztec noted in the release. To date, the program has completed significant drilling, with results validating the oxide gold-silver geological setting as outlined in Aztec's geological exploration model.

Aztec Minerals holds an 85.0% interest in the Tombstone Property Joint Venture, which encompasses most of the original patented mining claims in the main district and some recently acquired properties. The main focus of the current drilling is to test the shallow, bulk tonnage, potentially heap leachable, mesothermal gold-silver oxide mineralization adjacent and below the previously mined Contention pit through step-out drilling. Future drilling is expected to follow up on the current program's results, potentially targeting strike and dip extensions of the shallow oxide mineralization and exploring deeper into the sulfide zone.

The Tombstone Project, located 100 kilometers southeast of Tucson, Arizona, covers much of the historic Tombstone silver district, known for its high-grade, oxidized, silver-gold mesothermal stringer lode veins, hydrothermal breccias, and manto CRD orebodies. The district's geology comprises a mix of shallow-level, oxidized Au-Ag and base metal deposits related to CRD and skarns, offering significant potential for further discovery of mesothermal and CRD mineralization.

Prospects Enhanced for Future MRE

According to an updated research note by Red Cloud Analyst Alina Islam on March 3, the ongoing Phase 1 drilling program, which spans approximately 9,500 meters, aims to expand shallow, bulk-tonnage style, oxide mineralization primarily in two areas: the Contention Pit and the South Extension.

The results have not only demonstrated continuity of shallow oxide mineralization at the Contention Pit with broad intercepts but have also extended mineralization into less explored areas such as the Westside area, enhancing prospects for a future Mineral Resource Estimate (MRE), noted Islam, who rated the stock a Buy with a CA$0.60 per share price target, a 74% return at the time of writing.

To date, drilling has expanded the mineralized strike of the Contention system to over 1 kilometer north-south and over 400 meters east-west, the note said. There remains considerable exploration potential as the full extent of the Contention system is yet to be defined.

The results from these drilling activities are expected to contribute to the MRE, which is scheduled for the second half of 2026. Aztec has delineated significant near-surface, broad Au-Ag oxide mineralization at the Contention pit, with some intercepts showing extremely high grades. The upcoming MRE will incorporate data from 80 historical holes and recent drilling efforts.

"Our target is based on a probability-weighted valuation methodology. Aztec is an exploration-stage company, and we expect drill results and further expansion of mineralized areas to drive the stock price," Islam wrote. "Upcoming catalysts: 1) Tombstone RC and core drill results (ongoing), 2) Cervantes surface exploration results (Q1/26), and 3) Tombstone MRE (H2/26)."

In a January 28 opinion piece for Streetwise Reports, 321gold.com's Bob Moriarty noted that the company has been making significant strides, yet it seems the market has yet to fully recognize its potential.

Dyakowski reached out after noticing the market's lukewarm response to their impressive drill results, which included high-grade gold and silver. Aztec boasts two major projects: the 85% owned Tombstone silver/gold project in Southeast Arizona and the wholly-owned Cervantes gold project in Sonora, Mexico, Moriarty said.

"The market is clearly oblivious to the sheer scale of the Tombstone undertaking," Moriarty wrote. "For years, assay outcomes have been nothing short of phenomenal, only to be greeted by a deafening hush from investors. Across drilling campaigns dating back to 2020, Aztec has punched over a dozen 100+ gram-meter holes at Tombstone. Anything north of 100 g/m is extraordinary. The interval that seized my attention was TR25-17, which returned 5.72 g/t AuEq over a whopping 57.8 meters. In any outfit, that would be a game-changing result. Tack on another dozen triple-digit gram-meter holes, and Aztec has a turn-key mine begging to be fired up."

Given the exceptional quality of its projects and the current high prices for gold and silver, Aztec's market valuation appears remarkably low, suggesting a strong buy opportunity for those recognizing the company's true potential, Moriarty said.

The Catalyst: Is Gold Overbought?

The recent outbreak of war with Iran, ongoing uncertainties around President Trump’s tariffs, and unexpectedly high U.S. inflation rates are all factors that theoretically bolster gold and silver prices, reported Ernest Hoffman for Kitco News on March 3. However, both metals are currently showing signs of being overbought and may soon experience a downturn, suggests Rhona O’Connell, Head of Market Analysis for EMEA & Asia at StoneX.

In her Monday note, O'Connell highlighted that geopolitical tensions have been a dominant force impacting precious metals, particularly gold and silver, though platinum and palladium have also felt the effects of external pressures, Hoffman noted.

"The escalation of the conflict in the Middle East has notably driven up gold and silver prices, reflecting the market's risk aversion, while simultaneously pushing oil prices higher due to potential supply disruptions," O'Connell observed, according to the report.

She also pointed to the U.S. Supreme Court's decision on the International Emergency Economic Powers Act (IEEPA) tariffs and the resulting surge in litigation and uncertainty as additional factors supporting precious metal prices. Furthermore, President Trump's proposal to implement a widespread 10% tariff under Section 122 of the Trade Act of 1974 has sparked legal debates about its legality.

O'Connell also remarked on the significant rise in U.S. producer-side inflation, with the Producer Price Index (PPI) seeing its largest monthly increase since January 2025, which further underpins gold prices. Despite these factors, the market dynamics for gold and silver have been mixed. "Gold ETFs have seen slight increases this year, yet the CFTC's net long positions have significantly decreased," she noted. "Conversely, silver ETFs have undergone substantial redemptions, though there has been some buying on the long side and considerable short covering at the CFTC."

The U.S. dollar, often seen as a safe-haven asset, experienced significant gains, which in turn made gold and silver, priced in dollars, less accessible to investors using other currencies, wrote Ashitha Shivaprasad in a March 2 report for Reuters. Concurrently, U.S. Treasury yields increased for the second session in a row. Despite these factors potentially dampening bullion prices, predicts Bob Haberkorn, senior market ​strategist at RJO Futures. "However, this dip in prices is likely to be short lived, and flight to safety flows driven by geopolitical risk should support higher gold and silver prices."

On the geopolitical scene, the conflict with Iran intensified, marking its fourth day with new explosions reported in Tehran and Beirut. Adding to the tensions, a senior official from the Iranian Revolutionary Guards declared on Monday that the strategic Strait of Hormuz had been closed. This announcement had an immediate impact on global markets, with crude oil benchmarks surging over 8% on Tuesday, reflecting heightened concerns over potential disruptions in one of the world's key oil transport routes.

Ownership and Share Structure¹

About 3.67% of Aztec is owned by management and insiders. In this category, large shareholders include President and CEO Simon Dyakowski with 1.61%, and director Jim Schilling at 0.87%. 

About 11.56% is held by institutions. The rest is in retail.
Axtec has a market cap of CA$64.19 million, 188.79 shares outstanding, and a 52 week range of CA$0.15-CA$0.44.