VANCOUVER, Jan. 11, 2017 /CNW/ - Amarc Resources Ltd.
("Amarc" or the "Company") (TSX-V: AHR; OTCBB: AXREF) announces
that Thompson Creek Metals Company Inc. ("TCMC"), which was
recently acquired by gold-focused Centerra Gold Inc., has
relinquished its option to earn up to a 50% interest in the IKE
porphyry copper-molybdenum-silver discovery and surrounding
district, located near Gold Bridge,
British Columbia ("BC").
TCMC acquired a 10% participating interest in the IKE Project by
investing $6 million in exploration
programs undertaken in 2015 and 2016 (see news release dated
February 29, 2016). TCMC has
elected to exchange its 10% participating interest for a 1%
Conversion Net Smelter Royalty from mine production; capped at a
total of $5 million. As a
result, Amarc has re-acquired a 100% interest in the IKE Project
which hosts the newly discovered IKE deposit and at least 4 other
nearby, major, stand-alone porphyry copper deposit targets that are
now ready for drilling.
"Thompson Creek's investment materially advanced the delineation
of the IKE copper-molybdenum-silver deposit, and identified four
new and quite compelling porphyry copper deposit drill targets,"
said Amarc Chairman, Robert
Dickinson. "Amarc is thrilled with the opportunity to
re-acquire a 100% interest in the important-scale IKE Project,
widely acknowledged as one of the brightest new copper exploration
plays in the province, at a time of rising commodity prices and
market sentiment."
Amarc continues to be fully committed to unlocking the emerging
value of the IKE Project along with its recently announced JOY and
DUKE porphyry copper-gold and copper-molybdenum acquisitions
located in the Kemess region of north-central and the Babine region
of central BC, respectively.
Amarc also announces that it has acquired a 100% interest in the
Galore Property from Galore Resources Inc. ("Galore Resources"),
clear of any royalties to Galore Resources, by making a final
payment of $280,000. The Galore
Property comprises extensive mineral claims surrounding the IKE
porphyry copper-molybdenum-silver discovery and hosts several of
the additional, drill-ready copper-gold and copper-molybdenum
porphyry deposit targets (see news release dated July 19, 2016). This transaction marks the
successful completion by Amarc of a series of property dealings to
acquire 100% of the entire IKE district.
IKE Project
Amarc's IKE Project is located 33 km
northwest of the historical mining communities of Gold Bridge and Bralorne, in south-central BC
near the heartland of the Province's producing porphyry copper
mines. Core drilling of the IKE deposit is located above tree line
within large and barren cirques. Although current access to
the site is by helicopter, there is good infrastructure in the
region. Mainline logging roads leading northwest from Gold Bridge extend to within 13 km of the IKE
property. Power, railways and highways are all available in
the area of Gold Bridge and the
regional towns of Pemberton and Lillooet.
TCMC's investment over the past two years facilitated key
geological advancement and expansion of Amarc's IKE discovery, and
the delineation of four additional important-scale porphyry copper
deposit targets in the immediate district – Mad Major, OMG,
Rowbottom and Quinn (see news release October 17, 2016). Furthermore, it allowed
Amarc to also discover a number of other newly emerging porphyry
copper and precious metal epithermal deposit targets within the
extensive IKE mineral property. Over the last three years, 12,360 m
of core drilling in 21 holes, 85 km of induced polarization ("IP")
geophysical surveys, 177 km2 of regional geological
mapping and a collection of 2,115 talus fine and rock samples were
completed.
Amarc recently applied to the provincial government for permits
to drill up to 300 core holes within up to a 5 year period at
IKE.
JOY Project
Amarc has acquired 100% of the JOY mineral
claims, subject only to an underlying Net Smelter Returns royalty
from production which is capped at $3.5
million. JOY is located 310 km north-northwest of
Mackenzie in an area of moderate
topography in the Kemess District of north-central BC which is one
of BC's best areas for the discovery of porphyry and epithermal
deposits. The JOY property is accessed by helicopter from
seasonal roads that come within 0.5 km of the JOY property
boundary, or from the Kemess mine site located 25 km due south.
Power also extends to the Kemess mine site and its 300-person
camp.
The Kemess District is well-known to Amarc's technical team, as
Hunter Dickinson Inc. ("HDI"), with whom Amarc is associated, is
credited as the first company to recognize its true porphyry
potential – acquiring both the early-stage Kemess South and Kemess
North prospects into their operated company, El Condor Resources,
and developing them into significant porphyry copper-gold deposits
before that company was taken over. Northgate Minerals went on to
produce 3 million ounces of gold and 780 million pounds of copper
over a 12-year period to 20101 (Kemess South), and
AuRico Metals recently announced a 628 m intercept grading 0.53 g/t
Au and 0.41% Cu2 (Kemess East). Amarc considers
the JOY porphyry copper-gold deposit target to be an extension to
the prolific Kemess porphyry gold-copper district.
Geological timing is key to making a discovery of a major Cu-Au
porphyry deposit in the Kemess region with a close overlap in time
between porphyry copper-gold mineralization (ca. 203-194 Ma) and
the Black Lake Intrusions (ca. 205-191 Ma). An ideal setting for
discovery occurs at JOY with the Jock Creek Pluton, one of the
Black Lake Intrusions, located in the north-central portion of the
JOY property. The Jock Creek Pluton has been dated at 196.7
Ma, approximately the same age as the 199.6 Ma host of the Kemess
South deposit, which hosted a 50,000 tonnes per day past producing
mine.
Recorded prospecting-style work by various past operators on the
JOY claims began in 1968 and continued intermittently through to
2004. Over 2,000 soil samples, 840 rock samples and 30 silt
samples were collected, but no ground geophysical surveys or
drilling have been done and there has been little geological
mapping. However, a number of porphyry copper-gold and
epithermal Ag-Au deposit targets are clearly evident across the
mineral property. Most importantly, compilation of all historical
sampling along with a recently completed confirmation soil survey
at site, has revealed the presence of a 7 km2 area of
strong, coincident and overlapping soil and rock anomalies.
This outstanding and important scale porphyry copper-gold deposit
target is named Deposit Target 1. The extensive and
coincident copper, molybdenum, gold, silver, lead and zinc soil
anomalies outlining this target are interpreted to be reflecting a
large and shallowly buried, copper-gold porphyry deposit.
Amarc intends to engage early with First Nations and develop
permit applications to submit to the provincial government for IP
surveys and drilling at JOY.
DUKE Property
Amarc has secured a 100% interest in the
DUKE mineral property as well as extensive adjacent mineral claims
over nearby second-order exploration targets. DUKE is located 80 km
northeast of Smithers BC, within
the well-known Babine porphyry-copper district, 30 km north of
former mines (Bell and Granisle)
operated by Noranda Minerals Inc. between 1966 and 1992, and
producing a total of 1.1 billion pounds of copper, 634,000 ounces
of gold and 3.5 million ounces of silver3. DUKE is
also just 10 km northeast of the Morrison Deposit, a 225 million
tonne copper-gold-molybdenum porphyry deposit with a completed
Feasibility Study4.
The property is accessible from Smithers by road and an industrial-scale barge
crossing of Babine Lake from the town of Granisle. A longer,
all-road commute is available from Fort
St. James, 150 km to the southeast. Power extends to the
former Bell mine.
DUKE was intermittently explored between 1965 and 2010 with
geochemical, IP and magnetometer surveys and 30 shallow diamond
drill holes. Extensive glacial cover precludes geological
surveys and hinders geochemical survey interpretation, but most of
the holes drilled intersected significant lengths of porphyry-style
mineralization that remains open both laterally and to depth. For
example, DDH-14, intersected 87 m of 0.40% Cu, 0.021% Mo, 2.2 g/t
Ag and 0.05 g/t Au from 29 m to the end of the hole. Another
hole, DDH-02, located 430 metres southeast of DDH-14 intersected
107 metres of 0.30% Cu, 0.011% Mo, 1.2 g/t Ag, and 0.06 g/t Au from
30 m. Porphyry mineralization was encountered by drill holes
over an area of 800 m by 400 m which is open laterally in several
directions. The average vertical depth of all holes drilled
in this mineralized area is 90 m, with the deepest being only 124
m. Eighty percent of the holes drilled in this mineralized
area bottomed in porphyry copper mineralization. Additionally, IP
survey results indicate a significant area of prospective ground
has yet to be drilled.
Amarc intends to engage early with First Nations and develop a
permit application to submit to the provincial government for
drilling at DUKE.
About Amarc Resources Ltd.
Amarc is a BC-based mineral
exploration and development company with an experienced and
successful management team. It is focused on advancing the
100% owned IKE Project, a major new porphyry copper-molybdenum
discovery combined with at least four nearby and drill-ready, major
porphyry copper deposit targets. As well, Amarc has recently
acquired a 100% interest in the JOY and DUKE porphyry copper
projects, also in BC. The Company is applying for drill
permits for all of the 7 major porphyry copper targets it now owns
and is planning how best to prioritize and finance the development
of these exceptional discovery-stage targets. Amarc's goal is
to develop a whole new generation of BC porphyry copper mines.
Amarc is associated with HDI, a diversified, global mining
company with a 25 year history of porphyry discovery and
development success. Previous and current HDI porphyry
projects include some of BC's and the world's most important
mineral resources, such as Pebble, Mount Milligan, Kemess South,
Kemess North, Gibraltar,
Prosperity, Xietongmen, Newtongmen, Florence, Sisson and
Maggie. From its head office in Vancouver, Canada, HDI applies its unique
strengths and capabilities to acquire, develop, operate and
monetize mineral projects to provide superior returns to
shareholders.
Amarc is committed to working constructively with governments
and stakeholders towards the responsible development of its
projects, while contributing to the sustainable development of
local communities. All work programs are planned to achieve high
levels of environmental performance and local benefits, including
providing opportunities for employment, contracting and training
for local people. The Company works hard to support government's
consultation duties to assist with timely and fair decision making.
Amarc is committed to meaningful and constructive engagement with
First Nation communities and for the IKE Project has offered and
remains open to the comprehensive and progressive agreements it has
proposed at the early discovery-stage of project development.
The Company believes that the best outcome is always achieved in
the atmosphere of openness, constructive discussions, and mutual
respect from all interested parties.
Qualified Person as Defined Under National Instrument
43-101
Mark Rebagliati, P.
Eng., a Qualified Person as defined under National Instrument
43-101, has reviewed and approved the technical content of this
release.
ON BEHALF OF THE BOARD
Ronald W. Thiessen
Chief Executive Officer
Notes:
1. MINFILE Number 094E 094, MINFILE Production Detail Report, BC
Geological Survey, Ministry of Energy and Mines, BC.
2. Aurico Metals news release November 8,
2016.
3. MINFILE Number 093L 146 and 093M 001 MINFILE Production Detail
Report, BC Geological Survey, Ministry of Energy and Mines, BC.
4. Pacific Booker Minerals Inc. news release February 27, 2009.
Neither the TSX Venture Exchange nor any other regulatory
authority accepts responsibility for the adequacy or accuracy of
this release.
Forward Looking and other Cautionary
Information
This news release includes certain statements
that may be deemed "forward-looking statements". All such
statements, other than statements of historical facts that address
exploration drilling, exploitation activities and other related
events or developments are forward-looking statements. Although the
Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the
forward-looking statements. Assumptions used by the Company to
develop forward-looking statements include the following: Amarc's
projects will obtain all required environmental and other permits
and all land use and other licenses, studies and exploration of
Amarc's projects will continue to be positive, and no geological or
technical problems will occur. The Company cannot guarantee that
the Consolidated Loan and issuance of securities contemplated by
this release will complete. There is no certainty that the
Company will be able to repay the Consolidated Loan or any other
outstanding debt or liability of the Company in a timely manner or
at all. Factors that could cause actual results to differ
materially from those in forward-looking statements include market
prices, potential environmental issues or liabilities associated
with exploration, development and mining activities, exploitation
and exploration successes, continuity of mineralization,
uncertainties related to the ability to obtain necessary permits,
licenses and tenure and delays due to third party opposition,
changes in and the effect of government policies regarding mining
and natural resource exploration and exploitation, exploration and
development of properties located within Aboriginal groups asserted
territories may affect or be perceived to affect asserted
aboriginal rights and title, which may cause permitting delays or
opposition by Aboriginal groups, continued availability of capital
and financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
For more information on Amarc Resources Ltd., investors should
review the Company's annual Form 20-F filing with the United States
Securities and Exchange Commission at www.sec.gov and its home
jurisdiction filings that are available at www.sedar.com
SOURCE Amarc Resources Ltd.