Amarc drills target porphyry copper-gold deposits at JOY, B.C.
Amarc Resources Ltd. [AHR-TSXV, AXREF-OTCQB] said extensive core drilling has commenced at its 100%-owned JOY Copper-Gold District in north-central British Columbia. The program’s goal is the discovery of porphyry copper-gold deposits by wide-spaced drilling over eight large drill-ready sulphide mineralized systems clustered along a number of emerging mineralized trends.
The company said these trends resemble the 4.0-kilometre-long northeast mineralized trend in the Kemess Mining District, located immediately adjacent to the south of the JOY tenure. Owned by Centerra Gold Inc. [CG-TSX, CGAU-NYSE], the Kemess Mining District includes the Kemess North, Kemess Underground and Kemess East porphyry copper-gold deposits.
On Thursday, Amarc shares were unchanged at 13.5 cents and currently trade in a 52-week range of 17.5 cents and $0.075.
The current program is fully-funded by Freeport McMoran Mineral Properties Canada Inc., a unit of U.S. mining giant Freeport-McMoran Inc. [FCX-NYSE], which can earn a 70% project interest by making up to $110 million in staged payments.”
“We are very excited that the 2024 drilling program is fully underway at the JOY Copper-Gold District with two drill rigs,’’ said Amarc President and CEO Dr. Diane Nicolson. “Our drilling and district-wide geological, geophysical and geochemical programs at JOY over the past two years are culminating in this discovery-focused drilling program, which was designed in collaboration with the Freeport team.’’
Amarc recently said it had completed extensive airborne and surface exploration surveys on its 100%-owned DUKE porphyry copper-gold District in central British Columbia. The DUKE District covers 678 square kilometres and is located 80 kilometres northeast of Smithers within the Babine region, one of B.C.’s most prolific porphyry-copper belts.
The company said the surveys were designed to assess 16 porphyry copper-gold targets across the District to confirm highest priority targets for drill testing in 2024. Through 2023, the company said $10 million in exploration expenditures at the DUKE District were being fully funded under an earn-in agreement with Boliden Canada Ltd. Under the agreement, Boliden can earn a 70% interest in the project by making staged exploration and development investments.
To earn an initial 60% interest, Boliden must spend $30 million within four years of the effective date of the agreement, which was announced in November, 2022. Of that amount, $5 million was required to be spend in 2022 and early 2023.
Once it has earned 60%, Boliden can increase its stake to 70% by spending an additional $60 million on exploration and development at a rate of $10 million annually.
Amarc is the property operator until Boliden earns 60%, at which point it becomes the operator. The survey results will be released as soon as they are completed and interpreted, the company said.