VANCOUVER, Dec. 13, 2013 /PRNewswire/ - Amarc Resources Ltd. ("Amarc" or the "Company") (TSX-V: AHR; OTCBB: AHR) is pleased to announce that it has entered into an Option and Joint Venture Agreement ("Chilcotin Belle Agreement") with Oxford Resources Inc. ("Oxford") in relation to the Chilcotin Belle property, located in central British Columbia ("BC"). Amarc's management considers the Chilcotin Belle property to be prospective for bulk tonnage, porphyry-style copper-molybdenum-silver mineralization.
Under the Chilcotin Belle Agreement, Amarc will acquire an 80% ownership interest in the Property by making cash payments totaling $125,000, issuing 300,000 shares and by completing approximately $1.86 million in exploration expenditures on or before November 30, 2015. The mineral claims are subject to an underlying 2% net smelter returns royalty, which can be acquired by Amarc for $4 million. Upon exercise of the option by Amarc, the two parties will form an 80:20 joint venture to further develop the project.
The Chilcotin Belle property is located some 150 kilometres southwest of the City of Williams Lake in a region characterized by moderate topography (see location map on the Company's website at http://www.amarcresources.com/ahr/MapsFigures.asp). Limited historical drilling indicates the presence of a mineral system with characteristics that are highly favorable for the development of a viable copper-molybdenum-silver porphyry deposit. Of particular significance are three widely-spaced, historical drill holes (81-02, 891-01 and 891-02) which intercepted, from surface, long intervals of continuous, coarse grained chalcopyrite and molybdenum mineralization with encouraging grades. Examples of intersections from these holes are 289 metres of 0.36% copper equivalent (CuEQ1) comprising 0.28% Cu, 0.020% Mo (no silver assays available), including 91 metres of 0.51% CuEQ, comprising 0.39% Cu and 0.029% Mo; 216 metres at 0.39% CuEQ comprising 0.29% Cu, 0.020% Mo and 1.9 g/t Ag, including 58 metres at 0.53% CuEQ comprising 0.39% Cu, 0.031% Mo and 2.0 g/t Ag; and 120 meters of 0.42% CuEQ comprising 0.31% Cu, 0.020% Mo and 3.3 g/t Ag, including 32 metres of 0.60% CuEQ comprising 0.42% copper, 0.028% molybdenum and 6.3 g/t silver. All three holes ended in mineralization. Other, generally shallower, historical drill holes returned geologically significant intersections of copper and molybdenum concentrations indicative of a sizable mineralized system. These holes are believed to have not intersected the main area of interest.
Amarc plans to drill test the extent and grade of the known system at Chilcotin Belle, which remains open in all directions. A drill permit is in hand, however, a date to commence field activities is yet to be determined. In the interim Amarc will continue to effectively manage its treasury.
The transactions contemplated by the Chilcotin Belle Agreement are subject to the approval of the TSX Venture Exchange.
1Copper equivalent (CuEQ) calculations used metal prices of: Cu
US$3.00/lb, Mo US$12.00/lb and Ag US$20/oz.
Metallurgical recoveries and net smelter returns are assumed to be 100%.
About Amarc Resources Ltd.
Amarc is a Vancouver-based mineral exploration and development company focused on making the next major metal deposit discovery in BC. Despite ongoing challenging conditions in the equity market, Amarc has a sound base of approximately $4.5 million in working capital. The Company continues to take a prudent approach to treasury management and has adapted its exploration strategies to evaluate its portfolio of assets in an efficient and cost effective manner.
Amarc is associated with Hunter Dickinson Inc. (HDI) - a diversified, global mining group with a 25-year history of mineral development success. Previous HDI projects in BC include Golden Bear, Mt. Milligan, Kemess, Gibraltar and Prosperity. From its head office in Vancouver, Canada, HDI applies its unique strengths and capabilities to acquire, develop, operate and monetize mineral properties to provide superior returns to shareholders.
Mark Rebagliati, P. Eng., a Qualified Person as defined under National Instrument 43-101, has reviewed the technical content of this release.
ON BEHALF OF THE BOARD
Robert A. Dickinson
|Samples from drill holes 891-01 & 891-02 were taken by the previous operators & shipped to ISO 9001:2008 registered Acme Analytical Laboratory Ltd in Vancouver, BC in 2011. There they were crushed to 80% minus 10 mesh and pulverized to 85% minus 200 mesh. Analysis was by Acme Group 1DX2, a geochemical method in which a 15 g sub-sample is digested in aqua regia and analyzed by inductively-coupled plasma-mass spectrometry (ICP-MS) for Cu, Mo, Ag and additional elements. One over-limit was re-analyzed for Mo, by Acme Group 7AR. In this method, a 1 g sample is digested in aqua regia, then analyzed by inductively-coupled plasma-optical emission spectroscopy (ICP-OES).|
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 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. 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., 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.