VANCOUVER, July 5, 2013 /PRNewswire/ - Amarc Resources Ltd ("Amarc") (TSX-V: AHR; OTCBB: AXREF) and Quartz Mountain Resources Ltd. ("Quartz Mountain") (TSX-V: QZM; OTCBB: QZMRF) announce they have entered into an amendment agreement (the "Amendment") with respect to their previously executed joint venture agreement (the "JV Agreement") on the ZNT and Galaxie properties (the "Properties") located in central and northern British Columbia ("BC").
Under the terms of the Amendment, Amarc has the right to acquire a controlling interest in both properties by funding surface exploration programs to be completed during the 2013 field season. ZNT is considered to hold significant potential for the discovery of bulk tonnage-style silver deposits and Galaxie for porphyry copper deposits.
Under the terms of the Amendment, Amarc and Quartz Mountain have agreed that the current single joint venture between the companies will be divided into two separate joint ventures, namely the "Galaxie Joint Venture" and the "ZNT Joint Venture", effective June 26, 2013. Each joint venture will continue to be governed by the terms of the JV Agreement.
The parties have also agreed to amend the option granted by Quartz Mountain to Amarc under the original terms of the JV Agreement. Under the amended terms, Amarc has an option until October 31, 2013 to increase its interest in both the ZNT and Galaxie joint ventures from its current 40% interest to a 60% ownership interest by funding exploration expenditures of $210,000 and $235,000, respectively. Effective immediately, Amarc is appointed operator of both joint ventures. The field programs have been permitted and are expected to commence at ZNT in the next few weeks followed by work at Galaxie in late July through August.
The transactions contemplated by the Amendment are subject to regulatory approval.
The ZNT and Galaxie Properties
The 389-square kilometre ZNT property, located near Smithers in central BC, was staked by Quartz Mountain on the basis of significant zinc concentrations in regional till samples as reported by Geoscience BC. In late 2012, approximately 2,400 grid soil geochemical samples and 20 line kilometres of Induced Polarization ("IP") ground geophysical survey were completed. These initial exploration activities defined a new and unusually strong silver and multi-element-in-soils anomaly measuring 1.8 kilometres by 1.2 kilometres, within a more extensive and open ended anomalous trend. This significant silver anomaly is coincident with an extensive IP geophysical chargeability anomaly indicating the presence of an important scale mineralizing system.
The Galaxie property, located some 24 kilometres south of the community of Dease Lake BC, lies within the Stikine Terrane of northwestern BC, a well-endowed belt of rocks that hosts a number of important copper and gold deposits such as Red Chris, Schaft Creek, Galore and Kerr-Sulphurets-Mitchell-Snowfields and Brucejack.
The 1,200-square kilometre Galaxie property hosts known copper occurrences such as the Gnat deposit, and has excellent exploration potential. Integrated field surveys, including soil-grid, rock and silt geochemical sampling, and some 290-line kilometres of IP geophysical survey targeted five areas in 2012. One of these targets, the Hotai prospect, located in the southern part of the Galaxie property and largely covered by glacial sediments, will be the focus of 2013 work.
At Hotai, three discrete and large-scale IP chargeability anomalies lying beneath cover were defined by last year's surveys. The southernmost of these chargeability anomalies occurs over 750 metres by 1,700 metres and is coincident with a positive magnetic feature. A diorite outcrop situated peripherally to this chargeability anomaly hosts copper-bearing quartz veinlets. The second chargeability target to the north measures approximately 1,100 metres by 1,700 metres and is coincident with a pronounced annular magnetic high feature with a central magnetic low, a type of magnetic feature that is classically associated with porphyry copper deposits. In addition, a third potential mineralized system occurs to the northeast of these two target-areas, where a significant copper and multi-element-in-soils anomaly exists over 1,000 metres by 1,750 metres. This target is associated with a strong IP chargeability anomaly.
Mark Rebagliati, P. Eng., a Qualified Person as defined under National Instrument 43-101, has reviewed the technical content of this release.
In other news, Quartz Mountain has elected to not proceed with its option on the Buck Property located in central BC.
About the Companies
Amarc and Quartz Mountain are Vancouver-based exploration companies associated with Hunter Dickinson Inc. (HDI), a diversified, global mining group with more than 25 years of mineral development success. Amarc and Quartz Mountain have certain Directors in common and are accordingly considered by the TSX Venture Exchange to be Non-Arm's Length Parties.
ON BEHALF OF THE BOARDS
|Robert Dickinson||Scott Cousens|
|Amarc Resources Ltd.||Quartz Mountain Resources Ltd.|
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 release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts that address exploration drilling, exploitation activities and other related events or developments are forward-looking statements. Although Amarc Resources Ltd. and Quartz Mountain Resources Ltd. believe 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. 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, exploration and exploitation successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in and the effect government policies regarding mining and natural resource exploration and exploitation, 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. and Quartz Mountain Ltd., investors should review each company's annual Form 20-F filing with the United States Securities and Exchange Commission at www.sec.gov and their home jurisdiction filings that are available at www.sedar.com.
SOURCE Amarc Resources Ltd.