DRILLING INTERSECTS 148 METRES OF 0.53% CuEQ @
0.39% Cu, 0.03% Mo and 2.8 g/t Ag
VANCOUVER, Oct. 17, 2016 /CNW/ - Amarc Resources Ltd.
("Amarc" or the "Company") (TSX-V: AHR; OTCBB: AXREF) is pleased to
announce results from the 2016 field programs at the IKE porphyry
copper-molybdenum-silver discovery and surrounding district,
located near Gold Bridge, British
Columbia ("BC"). This year's work consisted of
1,923 m of core drilling in three holes at the IKE deposit, 77 km
of induced polarization ("IP") surveys over four important-scale
porphyry copper deposit targets nearby to IKE, 1,258 talus fine
samples collected over these and three more newly emerging porphyry
copper and precious metal epithermal deposit targets, and 130
km2 of regional geological mapping. Total expenditures
for the IKE Project in 2016 are budgeted at $3 million. Amarc, and Thompson Creek
Metals Company Inc. ("Thompson Creek") which is earning-into the
Project, believe that the IKE discovery together with the
surrounding district targets have high potential to develop into an
important new BC mining camp. An updated corporate
presentation is available on Amarc's website at
http://www.amarcresources.com/i/ahr/pdf/Presentation-Oct2016.pdf.
IKE Deposit
This year, 1,923 m of core drilling
was completed at IKE in 3 drill holes. Two of the holes (16020 and
16021) were collared in the southern part of the IKE deposit-area
and returned grades that compare favourably to the range of copper
equivalent grades at operating BC porphyry copper mines. A
single drill hole (16019), located 800 m west of the IKE deposit,
intercepted intervals of low grade copper and molybdenum over its
477 m length. Drill results listed in the table below continue to
confirm the importance of the IKE copper-molybdenum-silver porphyry
discovery.
All 21 holes drilled at IKE (2014-9 holes; 2015-9 holes; 2016-3
holes) have intersected long intervals of chalcopyrite and
molybdenite mineralization over an increasingly broad area
measuring 1,200 m east-west by 1,000 m north-south, and extending
to depths of over 500 m. This major new discovery remains
open to expansion in all lateral directions and to depth.
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2016 IKE DRILL
CORE ASSAY RESULTS4
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Drill
Hole
ID
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Azim
(o)
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Dip
(o)
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E.O.H.
(m)
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Incl.
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From
(m)
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To
(m)
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Int.1,2
(m)
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CuEQ3
(%)
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Cu
(%)
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Mo
(%)
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Ag
(g/t)
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IK16021
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80
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-45
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747.0
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81.0
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126.0
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45.0
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0.26
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0.24
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0.003
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1.2
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174.0
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201.0
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27.0
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0.37
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0.25
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0.028
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2.3
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219.8
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288.0
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68.3
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0.32
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0.22
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0.019
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2.5
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340.3
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627.3
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287.0
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0.38
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0.30
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0.017
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2.2
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Incl.
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340.3
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432.0
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91.7
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0.43
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0.30
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0.027
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2.7
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Incl.
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479.1
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555.0
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75.9
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0.48
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0.39
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0.018
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2.3
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IK16020
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85
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-45
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699.0
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123.0
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156.0
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33.0
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0.36
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0.27
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0.019
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1.8
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314.5
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462.0
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147.5
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0.53
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0.39
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0.030
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2.9
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549.0
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596.2
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47.2
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0.51
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0.20
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0.082
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2.5
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IK16019
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90
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-45
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477.0
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201.9
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222.0
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20.1
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0.27
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0.16
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0.022
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1.9
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1Widths
reported are drill widths, such that true thicknesses are
unknown.
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2All assay
intervals represent length weighted averages.
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3Copper
equivalent calculations use metal prices of: Cu US$2.25/lb, Mo
US$8.00/lb and Ag US$17.00/oz.
Metallurgical recoveries and net smelter
returns are assumed to be 100%.
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4Some
figures may not sum exactly due to rounding.
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Assay results from all of Amarc's drill holes are presented with
a drill plan and cross sections in Amarc's updated corporate
presentation on the Company's website.
IKE District Targets
Important-scale porphyry
copper (± gold ± molybdenum ± silver) deposit targets proximal to
the IKE discovery were indicated by both Amarc's exploration in
2014 and 2015, and reports from sporadic historical exploration in
the region by previous operators. During the 2016 field
season, these targets were evaluated by geochemical and geophysical
surveys with the goal of establishing and prioritizing porphyry
copper deposit targets for drilling. In addition, Amarc
completed comprehensive regional geological mapping of the central
130 km2 of the IKE district in order to fully comprehend
the overall mineral potential of the region.
The surveys have defined a number of significant porphyry copper
deposit targets and, in addition, potential precious metal
epithermal deposit targets. These deposit targets are located
along, to a few km inboard of, the contact of the northeastern
margin of the Coastal Plutonic Complex ("CPC") with older
volcano-sedimentary rocks. In general, porphyry, porphyry-related
and epithermal mineralization located closer to the CPC contact
tends to be more gold-bearing whereas deposits such as IKE that lie
inboard of the CPC contact are copper-molybdenum dominated.
All results from Amarc's district-wide, geophysical, geochemical
and geological surveys are presented in the Company's corporate
presentation on Amarc's website. Summary descriptions of the
main district targets are provided below.
Mad Major
The Mad Major porphyry copper target,
located 6 km east of IKE, is associated with an approximately 10
km2 copper-molybdenum-tungsten geochemical anomaly, as
compared to a similar style 6 km2 anomaly at IKE.
Within this target area, talus fines and rock chip geochemical
sampling have collectively defined an anomaly characterized by high
concentrations of copper and molybdenum, combined with anomalous
concentrations of tungsten and extensive potassic alteration.
Like the IKE deposit, copper mineralization is hosted by
multiple intrusive phases. Notably, continuous talus fines samples
collected over a length of 3.5 km across the anomalous area
returned copper concentrations in the range of 0.10% to 0.50%, and
as high as 0.80%. Some 1 km east of these talus fines, six
reconnaissance composite chip samples, each collected over lengths
of approximately 30 m, returned copper results of 0.15% to 0.22%.
The Mad Major porphyry copper-molybdenum target is ready for
exploration drilling.
OMG
The OMG porphyry copper deposit target is located
just to the north of Mad Major, and 5 km northeast of IKE.
This covered target is characterized by a 4 km by 3 km oval-shaped
magnetic low - a unique feature that stands out and disrupts the
regional magnetic trend. A 4 km2 IP chargeability
anomaly is coincident with the magnetic low and remains open to
expansion. This intriguing magnetic low may well represent a felsic
intrusion or hydrothermal alteration; both features are prospective
for porphyry-style mineralization, especially given the coincident
IP chargeability anomaly, indicating the presence of sulphide
mineralization.
Reconnaissance geochemical samples collected over this IP
chargeability anomaly have returned anomalous concentrations of
copper, molybdenum and silver. There is no historical
drilling reported in the OMG area and no rock outcrops have been
noted. The geological setting, combined with the results of Amarc's
geophysical and geochemical surveys indicate an important-scale,
covered, porphyry copper deposit target that is ready for
exploration drilling.
Rowbottom
The Rowbottom porphyry deposit target is
located 4.5 km north-northwest of IKE and 2.5 km south of the known
Empress porphyry copper-gold deposit. An historical estimate,
not categorized as prescribed by National Instrument 43-101, of
about 10 million tonnes grading 0.61% Cu and 0.79 g/t Au was
reported in 1991 for Empress. Sufficient work to classify the
Empress estimate as a current mineral resource or mineral reserve
has not been completed by a qualified person, and Amarc is not
treating the historical estimate as current.
Eleven historical percussion holes have been drilled in the
Rowbottom area and eight of these intercepted porphyry copper
mineralization. All of these holes were shallow (generally ±
60 m) with a number of holes terminating in mineralization.
The best holes intersected 56 m of 0.53% CuEQ5 @
0.41% Cu and 0.034% Mo, 55 m of 0.35% CuEQ @ 0.25% Cu and 0.028%
Mo, and 88 m of 0.38% CuEQ @ 0.36% Cu and 0.006% Mo. Notably,
although the historical drill samples were analysed only for copper
and molybdenum, the presence of gold in Amarc's surface samples
indicates the potential for the Rowbottom porphyry system to be
gold-bearing.
This year, an IP survey confirmed a chargeability anomaly
measuring 1.3 km by 1 km outwards from the mineralized historical
percussion holes. This anomaly is unconstrained to the west.
The Rowbottom porphyry deposit target is ready for
delineation drilling.
____________________________
5 Copper
equivalent (CuEQ) calculations use metal prices: Cu US$2.25/lb and Mo US$8.00/lb. Metallurgical recoveries and net
smelter returns are assumed to be 100%.
Quinn
Quinn is a newly emerging porphyry copper-gold-silver
target located between Rowbottom and the Empress deposit, where
regional mapping identified intermittently exposed copper
mineralized felsic intrusions. Talus fines and rock chip samples
over this target area have defined an extensive multi-element
copper-gold-silver anomaly over an area of approximately 3 km by 2
km. Two reconnaissance composite chip samples collected from
outcrop, each over lengths of about 50 m, grade 0.28% Cu and 0.08
g/t Au and 0.32% Cu and 0.36 g/t Au. The Quinn target requires
confirmation by surface IP surveys, followed by exploration
drilling.
Buzzer
The Buzzer porphyry copper-gold target is
located 6 km north of IKE and 3.5 km northwest of OMG. Historical
drilling at Buzzer has returned some significant intervals of
copper, gold, silver and molybdenum, including 65 m of 0.60
CuEQ6 @ 0.34% Cu, 0.18 g/t Au, 6.2 g/t Ag and 0.019% Mo,
and 44 m of 1.24% CuEQ @ 0.67% Cu, 0.50 g/t Au, 5.3 g/t Ag and
0.045% Mo. Although this mineralization appears closed off by
historical drilling, IP surveys conducted by Amarc over a covered
area 800 m north of the known Buzzer mineralization has defined an
open-ended 2.5 km long by 600 m wide IP chargeability anomaly which
is now ready for drill testing.
____________________________
6 Copper equivalent (CuEQ) calculations use metal
prices: Cu US$2.25/lb, Au
US$1,100/oz, Ag US$17.00/oz and Mo US$8.00/lb. Metallurgical recoveries and net
smelter returns are assumed to be 100%.
Mewtwo
At Mewtwo, an historical ASTER satellite survey
outlined a prominent, north-northwest trending zone of
kaolinite-illite alteration coincident with a rhyolite dyke swarm
located west of the IKE deposit. Talus fines and rock chip
samples have outlined a 5.5 km long silver-lead-zinc±gold
geochemical anomaly. Two selected rock grab samples in this
area returned 173 g/t and 505 g/t Ag. This extensive silver
(± gold) epithermal-style anomalous zone requires further
exploration to determine its importance.
About the IKE Project
The 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
southern extent of the IKE property. Power, railways and
highways are all available in the area of Gold Bridge and the regional towns of
Lillooet and Pemberton.
To efficiently advance the IKE porphyry copper discovery and
surrounding district, Amarc has partnered with Thompson Creek.
Under that agreement, Thompson Creek can earn an initial 30%
interest in the IKE Project by funding $15
million of expenditures before December 31, 2019, of which $3 million was completed in 2015 and an
additional $3 million has been
committed for 2016. By completing the funding of an initial
$5 million of expenditures, Thompson
Creek has now earned its first incremental 10% interest in the
Project. After Thompson Creek earns a 30% interest, it may
earn an additional 20% interest in the IKE Project, for a total of
a 50% joint venture interest by, among other things, completing a
feasibility study. Amarc is the current operator of the IKE
Project.
Amarc is working with governments, First Nations and
stakeholders toward the responsible development of the IKE Project,
while protecting water and other natural resources in the project
area and making contributions to the sustainability of local
communities.
The Company is committed to progressive Health & Safety
protocols to protect the well-being of its employees and
contractors. It has a zero tolerance for alcohol and
drugs. In 2016, Amarc contracted a specialized consultant,
Jim Douglas of Raven Rescue, to
review its Health & Safety program. Douglas stated:
"Amarc's culture of safety is truly impressive. Project
Managers, Supervisors, Contractors and Employees seem to be very
well engaged."
The Company's commitment to regulatory compliance and
environmental responsibility informs every aspect of its
exploration activities, from program planning and permitting,
through to exploration program implementation and reclamation.
The Company employs a range of progressive practices to
ensure that any impacts associated with the exploration activities
are minor, localized and temporary. These practices have
included, for example, full helicopter-support of all field
programs in order to avoid drill road-building and stream
crossings, environmental monitoring systems, water quality sampling
and the plugging of all drill holes. In addition, Amarc has
voluntarily cleaned up some historical exploration camps abandoned
by previous operators in the IKE region, removing by helicopter
about 2.25 tonnes of waste materials including 30 empty fuel
drums.
Amarc manages an ongoing program of outreach to local
communities, stakeholders and First Nations and advances an agenda
that supports the delivery of shared prosperity. In addition
to one-on-one and small group meetings, the Company's efforts
include the provision of jobs, training programs, contract
opportunities, capacity funding and sponsorship of community
events.
In 2016, engagement with local First Nations contributed to the
development of several capacity building programs consistent with
Amarc's Local Benefits Policy, including:
- Partnering with a First Nation to supply core boxes for the
exploration program consistent with an Agreement signed between
Amarc and a First Nation; and
- Collaboration on a Job Skills Workshop and a First Aid Training
Certification initiative with another First Nation.
In addition, Aboriginal and local community members comprised
about 40% of Amarc site team in 2016, while approximately 70% of
contracts let were awarded to local and regional-based companies.
The Company also sponsored community events such as the
Cariboo Aboriginal Youth Hockey Championship, and assisted with
enhancements to the Bralorne community baseball field.
Amarc remains open to establishing progressive agreements with
local First Nations that provide for shared decision making through
project planning committees and participation in the Board,
ownership possibilities, and meaningful economic benefits in
relation to development of the IKE property. Amarc is working
to advance these comprehensive partnership discussions at the
earliest stages of project development based on a view that the
best outcomes are achieved in a climate of respect and mutual
understanding, constructive dialogue and common interest.
Amarc proactively supports government's duty to consult First
Nations, to contribute to meaningful engagement opportunities and
facilitate timely, fair and defensible permitting. After a
rigorous review process, the Company timely received two five-year,
area-based permits for early-stage, exploration activities at the
IKE property and surrounding district prior to the 2016 field
season. A 50-hole drill permit and deemed authorization for
40 line-km of IP surveys at IKE, as well as 230 line-km of IP
surveys at the Mad Major, OMG, Rowbottom and Buzzer targets,
provide Amarc with regulatory certainty and operational
flexibility. Additional exploration permits are planned to be
filed as required for exploration of the IKE property.
About Amarc Resources Ltd.
Amarc is a
BC-based mineral exploration and development company with an
experienced and successful management team that is focused on
advancing the IKE Project, a major new porphyry copper-molybdenum
discovery and highly prospective district. With the IKE
Project underway and Thompson Creek on board as a strong funding
partner, Amarc is now assessing the acquisition of other porphyry
copper properties in BC with the goal of expanding the Company's
portfolio of high quality mineral projects.
Amarc is associated with Hunter Dickinson Inc. ("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.
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.
Quality Control/Quality Assurance Program
All drill core was logged, photographed and cut in half
with a diamond saw. Half core samples were sent to Activation
Laboratories Ltd. ("Actlabs") in Kamloops, Canada facility (17025 accredited),
for preparation and analyses. Drill core samples were
analyzed for Cu, Mo and 34 additional elements by 4 acid digestion
of a 0.25 g sample followed by an ICP-AES finish. Cu, Mo, Ag, Au
and 59 additional elements we also analyzed by Aqua Regia digestion
of a 0.5 g sample followed by an ICP-MS finish. As part of a
comprehensive Quality Assurance Quality Control ("QAQC")
program, one standard, and one in-line replicate were inserted into
the sample stream in each group of 20 samples, as well as one or
more field blanks in each analytical batch and then checked to
ensure proper QAQC. Inter-laboratory duplicates were
submitted for each group of 20 samples from drill holes IK15010,
IK15011, IK15013, IK16020 and IK16021 and then also checked to
ensure proper QAQC.
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.
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.