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. 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.
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.
