VANCOUVER,
Nov. 7, 2012 /PRNewswire/ - Amarc
Resources Ltd. ("Amarc") (TSXV: AHR) (OTCBB: AHR) announces that it
has entered into a Letter Agreement ("Letter Agreement") with
Quartz Mountain Resources Ltd. ("Quartz Mountain'), on Quartz
Mountain's 100%-owned Galaxie and ZNT properties ("Properties"),
located in northern and central British
Columbia ("BC"). The Properties hold significant exploration
potential, and include the Gnat porphyry deposit where an
historical estimate of an "Indicated Reserve" of 30 million tonnes
grading 0.39% Cu remains open to expansion. This strategic
investment provides Amarc with a cost effective opportunity to
participate in projects with strong drill targets that have the
potential to provide a significant return for Amarc's
shareholders.
Data being received from ongoing aggressive
exploration programs at Galaxie and ZNT is identifying several
encouraging base and precious metal targets for drill testing. Work
at Galaxie indicates that an important copper porphyry deposit is
present at Gnat, where a drill program designed to test newly
identified potential extensions to the system is to commence
immediately.
Under the Letter Agreement, Amarc will acquire
an initial 40% ownership interest in the Properties by making a
cash payment of $1 million to Quartz
Mountain, and by funding an additional $1
million in exploration expenditures relating to the Galaxie
property on or before December 31,
2012. Amarc also has the option to acquire an
additional 10% ownership interest in the Properties by funding a
further $1 million in exploration
expenditures on or before September 30,
2013.
The transactions contemplated by the Letter
Agreement are subject to regulatory approval and it is expected
that the parties will enter into a definitive agreement governing
the transactions in greater detail.
Galaxie Project
The approximately 1,300 square kilometre Galaxie
project in northwest BC has excellent potential for the discovery
of bulk tonnage copper-gold and/or molybdenum deposits. It is
located within the well-endowed Stikine Terrane, which is host to a
number of important copper-gold deposits with substantial mineral
resources. These include the Red Chris porphyry deposit, located 60
kilometres south of Galaxie, with Proven and Probable Reserves of
302 million tonnes grading 0.36% copper and 0.27 g/t gold (Imperial
Metals, November 2010), and also the
Schaft Creek, Galore and Kerr-Sulphurets-Mitchell-Snowfield
deposits.
Historical exploration at Galaxie, including
geological, geochemical and geochemical surveys, as well as
trenching and drilling, identified several copper occurrences,
including the Gnat porphyry deposit. In addition, recent
exploration by Quartz Mountain has identified a number of new
quality precious and base metal targets for drill testing.
An historical estimate for the Gnat porphyry
deposit comprising "Indicated Reserves" of 30,387,850 tonnes
grading 0.39% copper, including 20% dilution by wallrock grading
0.15% copper, was completed by Lytton Minerals Ltd. in 1972. This
historical estimate, reported in a Canadian Stock Exchange Listing
Statement in 1972, was based on 83 AQ-size drill holes completed by
Lytton and others to that time. As
no technical report or other documentation of reserve estimation
parameters is known to exist, the reliability of the estimate
cannot be assessed. There is no classification of "Indicated
Reserves" under current standards and a Qualified Person has not
done sufficient work to classify the estimate as current mineral
resources or reserves, and as such Amarc is not treating it as
current.
Information from historical drilling of the Gnat
deposit area clearly illustrates that the copper mineralization
remains open to expansion, including to depth. A ground Induced
Polarization ("IP") geophysical survey recently completed over the
immediate deposit area combined with the re-logging of historical
drill core has refined targets for the upcoming initial drill
program.
In addition to Gnat, the Galaxie property has
other excellent exploration potential. Data is currently
being received from geological, geochemical and IP geophysical
surveys completed by Quartz Mountain over a number of highly
prospective precious and base metal targets. Once all the data has
been received, compiled and reviewed, drill targets will be defined
and applications for drill permits submitted to the provincial
government.
The Galaxie Project is located some 8 kilometres
south of Dease Lake, BC, within a
region where mining and mineral exploration is the principal
industry (see maps at
http://www.amarcresources.com/ahr/MapsFigures.asp. The
district is well served by an existing transportation system, a
developing power infrastructure, and a skilled workforce. Highway
37 passes through the center of the Galaxie Project and provides
year-around direct access to the Gnat deposit which is located in
an area of flat to gently rolling topography. Construction of the
$400-million Northwest Transmission
Line project has commenced, which is to include a new 287-kV
transmission line to a new substation near Bob Quinn Lake,
approximately 180 km by road south of Dease Lake. The Northwest Transmission Line is
scheduled to connect in early 2014 to the Red Chris copper-gold
porphyry mine development project.
ZNT Project
The approximately 100 square kilometre ZNT
project is located in west-central BC, approximately 15 kilometres
southeast of the town of Smithers
(see maps at http://www.amarcresources.com/ahr/MapsFigures.asp.
This early-stage exploration property was staked by Quartz Mountain
on the basis of significant zinc and gold values in regional till
samples, as well as copper and silver mineral occurrences as
reported by Geoscience BC and the provincial government,
respectively. Initial results received from prospecting, grid soil
geochemical sampling and IP geophysical surveys completed by the
Quartz Mountain's technical team indicate promising exploration
potential. Once all the data has been received and reviewed, drill
targets will be delineated and applications for drill permits
submitted to the provincial government.
The area of the ZNT property is characterized by
gentle topography. The region is well-served by existing
transportation and power infrastructure, and is connected via CN
Rail at Smithers to the deep water
port at Prince Rupert. In
addition, a skilled local workforce supports an active mineral
exploration industry.
Amarc and Quartz Mountain are Vancouver-based exploration companies
associated with Hunter Dickinson Inc. (HDI), a diversified, global
mining group with more than 25 years of mineral development
success. Amarc and Quartz Mountain have certain Directors in common
and are accordingly considered by the TSX Venture Exchange to be
Non-Arm's Length Parties.
About Amarc Resources Ltd.
Amarc is a Vancouver-based mineral exploration and
development company focused on making the next major precious and
base metal discovery in BC. With a solid working capital position
of $8.5 million, Amarc's exploration
activities are focused on: its 100%-owned Silver Vista
silver-copper project; the Galaxie and ZNT properties held in the
Joint Venture with Quartz Mountain; its 100%-owned Galileo
property, located adjacent to New Gold's Blackwater gold-silver
deposit; and the 100%-owned Newton gold discovery.
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
Chairman
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.
