VANCOUVER, Dec. 27, 2017 /CNW/ - Amarc Resources Ltd.
("Amarc" or the "Company") (TSX-V: AHR; OTCBB: AXREF) is pleased to
announce that Hudbay Minerals Inc. ("Hudbay")(TSX: HBM; NYSE:HBM)
has confirmed 2018 funding of $3.15
million1 to advance Amarc's JOY Project and
$1.5 million to advance its IKE
Project.
Under the terms of the JOY Project Agreement (see news release
dated August 22, 2017) and the IKE
Project Agreement (see news release dated July 6, 2017) Hudbay may acquire, through a
staged investment process, up to a 60% ownership interest in each
of the Projects, with Amarc the operator during the exploration
periods. In the first stage, Hudbay can earn an initial 49%
interest in JOY and IKE by funding $15
million and $25 million,
respectively, of project expenditures before December 31, 2020. In 2017, Hudbay funded
$2.0 million to advance JOY and
$3.3 million to advance IKE.
Pursuant to executed letters of intent, which are conditional on
being superseded by amended Agreements by January 31, 2018, Hudbay will have the right to
extend its first stage earn-in period for both Agreements by one
year to December 31, 2021. The
partners have also agreed to include Amarc's recently acquired PINE
claims into the JOY Project. Of the 2018 JOY funding, $1.15 million will be paid to Amarc in 2018
towards its PINE property acquisition costs.
Provided that Hudbay has completed the first stage of funding
and acquired 49% interest in the JOY and/or IKE Projects, it can
then elect to acquire a further 1% interest (for a total 50%
interest) in each Project by funding $5
million and $15 million of
expenditures, respectively, by December 31,
2021. Subsequently, Hudbay may earn a further 10% interest
(for a total 60% interest) in each of JOY and IKE by completing
further important milestones and completing additional
project funding that are linked to the acceptance of the requisite
project into the Environmental Assessment ("EA") review process and
the issuance of the necessary EA Certificates.
About Amarc Resources Ltd.
Amarc is a mineral exploration and development company with an
experienced and successful management team focused on developing a
new generation of BC porphyry copper mines. By combining
strong projects and funding with successful management, Amarc has
created a solid platform to create value from its exploration and
development-stage programs.
Amarc is advancing its 100% owned IKE, DUKE and JOY porphyry
copper deposit districts, located in southern, central and northern
BC, respectively, each with proximity to industrial infrastructure,
power, rail and highways. These projects represent
significant potential for the discovery of multiple and
important-scale, porphyry gold-copper and copper-molybdenum
deposits. Please see an updated corporate presentation available on
Amarc's website at www.amarcresources.com.
Work at the 462 km2 IKE mineral property has
delineated a copper-molybdenum-silver mineralized system measuring
at least 3.5 km by 2 km through combined induced polarization
("IP") surveys, talus geochemical sampling and the earlier drilling
of 21 core holes at the IKE deposit. The IKE mineral system has the
geological earmarks of important copper-molybdenum-silver mines
like Morenci and Sierrita in
Arizona, and Valley in BC.
In addition, at least five significant porphyry copper deposits
targets have been established within 10 km of the IKE
discovery. Amarc is partnered with Hudbay to explore and
develop the IKE Project. Planning for 2018 is underway.
It is expected that the exploration focus at IKE will be
wide-spaced drilling within the 3.5 km by 2 km mineralized system
to begin determining the overall geometry and
copper-molybdenum-silver grade distribution of this important-scale
discovery.
At the 190 km2 DUKE mineral property, results
received from two recent drill holes completed by Amarc, each of
which drilled lengths of over 500 m,
indicate the discovery of a significant new porphyry
copper-molybdenum-silver-gold deposit. Importantly, after
intersecting some 400 m of
copper-molybdenum porphyry mineralization, continuation of the most
westerly of the two drill holes encountered adjacent bulk
tonnage-style gold-copper mineralization that is open to
expansion. With the previously producing Bell and
Granisle porphyry gold-copper
mines nearby, this unexpected and exciting new development
multiplies both the potential of the DUKE project, and the regional
porphyry district staked by Amarc. The Company is developing
plans to initiate a grid-type drill program as early as Q1 2018, in
order to commence delineation of the geometry and grade
distribution in relation to both the bulk tonnage gold-copper
mineralization and copper-molybdenum-silver mineralization
discovered at DUKE.
At the 464 km2 JOY project area, which includes the
newly acquired PINE claims, the Company now controls the northern
extension to the prolific Kemess gold-copper district. Centerra
Gold recently announced the $310
million acquisition of AuRico Metals, owner of the Kemess
district. Amarc has identified a new, 20 km long northeast
trending structural corridor at JOY that hosts over 10 compelling
porphyry gold-copper deposit targets. These focused targets
are the result of extensive historical surface surveys and drilling
by past operators. Amarc is partnered with Hudbay to explore
and develop the JOY Project. Plans being developed for 2018
include systematic IP surveys over the deposit-scale targets
already identified within and adjacent to the Finlay Magnetic
Corridor. Drilling is expected to follow, testing the
sulphide systems delineated by the IP surveys for major gold-copper
deposits.
Amarc is associated with Hunter Dickinson Inc. ("HDI"), a
diversified, global mining company with a 30-year history of
porphyry discovery and development success. Pervious and
current HDI porphyry projects included 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 working with government, stakeholders and First Nations
toward the responsible development of its projects, and manages an
ongoing program of community and regional outreach for each of its
projects. These efforts include the provision of jobs,
training programs, contract opportunities, capacity funding and
sponsorship of community events. The Company also seeks to
establish comprehensive partnership discussions with local First
Nations at the earliest stages of project development with the goal
of establishing progressive agreements. All work programs are
carefully planned to achieve high levels of environmental and
social performance
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
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.
There is no certainty that the referenced letters of intent will be
superseded by binding legal agreements. 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.
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1 All currency values are in Canadian dollars
SOURCE Amarc Resources Ltd.
