Amarc Resources announces “significant” BC discovery
Hunter Dickinson company says it has porphyry-style copper-molybdenum-silver deposit
Looking northwest over the IKE property. The two dark spots are drilling platforms. — photo courtesy Amarc
Amarc Resources Ltd. of Vancouver recently made a significant copper-molybdenum-silver discovery at its IKE project, located approximately 40 kilometres northwest of Gold Bridge, British Columbia, and 300 kilometres north of Vancouver.
The company said assay results from a nine hole, 5,400-metre diamond drill program have confirmed the presence of a porphyry-style deposit on the property, which it acquired in December 2013.
The nine holes intersected chalcopyrite and molybdenite mineralization from surface and over a broad area measuring 1,200 metres east-west by 600 metres north-south, and to depths of approximately 500 metres. Mineralization at IKE remains open in all lateral directions and to depth.
In an announcement, Amarc executive chairman Bob Dickinson said the “extent, continuity and grade of the mineralization encountered indicate important potential resource volumes. It is very encouraging that long, continuous intercepts at IKE have returned copper equivalent grades in the range of those for operating copper mines in the province. Amarc is planning an expanded drill program at IKE in 2015, with the goal of fully delineating the copper-molybdenum-silver deposit."
Highlights from the program include: 247 metres of 0.42 per cent copper equivalent at 0.28 percent copper, 0.030 percent molybdenum and 2 grams/tonne silver; 234 metres of 0.43 per cent copper equivalent at 0.26 percent copper; 0.040 percent molybdenum and 1.7 grams/tonne silver; and 92 metres of 0.41 per cent copper equivalent at 0.31 per cent copper, 0.020 per cent molybdenum and and 2.1 grams/tonne silver.
After the discovery was made, more exploration of the site took place. It included a high-resolution airborne magnetic survey, a copper and multi-element in talus fines geochemical survey, and an induced polarization ground geophysical survey.
About the region
The IKE discovery is located in an area of wide U-shaped valleys bounded by ridges. The district has been explored in the past for copper, molybdenum, gold and silver mineralization. Amarc's discovery core drilling program was located above tree line in a large barren cirque.
Although the property can be reached only by helicopter now, the company said there is good infrastructure in the region. Mainline logging roads leading east to Gold Bridge are located 20 kilometres south of IKE. Power, railways and other services are available in the area at Gold Bridge and the nearby town of Lillooet.
Amarc is planning an expanded drill program at IKE in 2015, with the goal of fully delineating the deposit.
Amarc has, in addition to IKE, rights to acquire two nearby properties. The company has a 70 per cent ownership interest in the Galore property and a 100 per cent ownership interest in the Granite property.
Amarc management believes the Galore and Granite properties have the potential to host bulk tonnage porphyry copper-molybdenum mineralization as well as copper-gold deposits.
Amarc is affiliated with Hunter Dickinson Inc. (HDI), a diversified global mining company with a 25-year history of porphyry discovery and development.
Other HDI porphyry projects include Mt. Milligan, Kemess, Gibraltar, Prosperity, Maggie (all in B.C.), Sisson (New Brunswick), Florence (Arizona), Pebble (Alaska) and Xietongmen (China).
The challenges
Amarc president Diane Nicolson said the company's biggest challenge is securing the financing to move IKE along.
“Amarc is in a challenging market, and investors are being careful with their money,” Nicolson said. “Our aim is to finance IKE without heavy dilution of the stock, and we're optimistic that we'll succeed.”
Nicolson said Amarc plans to drill 50 holes during the 2015 exploration season, depending on how much money it can raise.
To give the company a boost during these tough times, executive chairman Dickinson has lent it $1 million. That gives Amarc some breathing room as it plans this year's drilling program.
Dickinson said he thinks Amarc has the next Highland Valley project, referring to Teck Resources Ltd.’s massive B.C. copper operation.
Amarc is negotiating with senior mining companies to form a joint venture on IKE and bring in more money for drilling. Even though the seniors are being very careful with their capital these days, Dickinson is convinced he can get a deal done that will be good for shareholders.
“It’s an important discovery,” he said. It’s not mickey mouse.”
