Amarc, Freeport plan extensive drilling at B.C. copper-gold project
Amarc Resources Ltd. [AHR-TSXV, AXREF-OTCQB] said it is in the final planning stages with . Freeport McMoran Mineral Properties Canada Inc. of an extensive 2024 drilling program at its 100%-owned Joy copper-gold project in the Toodoggone region of north-central B.C. Freeport McMoran can earn a 70% project interest by making up to $110 million in staged payments.
The program is expected to start in June, 2024, and will be fully funded by Freeport. Amarc is the project operator.
“All drilling and exploration survey activities, together with trail and bridge repair initiatives completed at the JOY District over the past two years are culminating in an aggressive and focused drilling program in 2024,’’ said Amarc President and CEO Diane Nicolson. “Our goal is discovery, by wide-spaced drilling, of one or more porphyry copper-gold deposits within some seven drill-ready sulphide mineralized systems that extend over areas measuring 3.0 to 7.0 square kilometres.’’
Amarc shares advanced on the news, rising 3.1% or $0.005 to 16.5 cents. The shares currently trade in a 52-week range of 17.5 cents and $0.075.
Amarc said results from its 2023 geological, geochemical and geophysical surveys have greatly assisted in defining drill targets. This work highlights, for example, the Northwest Gossan Deposit target, the PINE Porphyry Trend, the Canyon Discovery and the Twins Deposit target as well as several other drill-ready targets. Also, there are seven additional copper-gold targets located across the District that are to be brought up to a drill-ready status.
The Northwest Gossan Deposit target has never been drill-tested and is characterized by several intriguing layers of scientific evidence that indicate proximity to a porphyry copper-gold system.
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.