Amarc Works to Re-Partner after Hudbay Relinquishes Exploration Options at Joy and IKE Projects, BC

VANCOUVER, Jan. 19, 2019

The 464 km² JOY property covers the northern extension of the prolific Kemess porphyry gold-copper district. Over the last two years, with a total investment of $5.55 million, Amarc/Hudbay consolidated the land package and completed extensive airborne and ground exploration surveys along with compiling thousands of geochemical and geophysical survey data points from previous operators (Gold Fields Toodoggone Exploration Corporation and Cascadero Copper Corporation).  This work has delineated multiple, high potential, porphyry gold-copper deposit targets. 

Five clusters of drill-ready targets, covering areas from 1.5 km² to more than 5 km² are defined by a combination of positive factors that include: extensive IP chargeability highs indicating large sulphide mineralized systems; areas of notable gold and copper enrichment identified by shallow historical drill holes; coincident, high-contrast copper, gold, molybdenum and zinc soil geochemical anomalies; and favorable geology and magnetic signatures. Amarc's team, whose members are credited with being the first to recognize the Kemess district's true potential, having discovered and advanced the Kemess South deposit, believe the JOY project targets have high potential to host multiple, important-scale porphyry gold-copper deposits. Multiple drill holes are required for the initial testing of each target area.

At the 462 km² IKE property, Amarc/Hudbay completed extensive induced polarization geophysical surveys, talus geochemical sampling and drilling with a total exploration investment of $4.9 million over the last two years. This work has delineated a 3.5 km by 2 km mineralized system which hosts the IKE porphyry copper-molybdenum-silver deposit discovery. Core drilling of 15,455 metres in 26 holes has intersected chalcopyrite and molybdenite mineralization over an increasingly broad area, now measuring 1,200 m east-west by 1,000 m north-south and extending vertically over 875 m.  Substantial volumes of mineralized material have been intersected and remain open to further expansion. Extensive regional surveys have also identified a number of other significant porphyry copper (±molydenum±gold±silver) deposit targets all within 10 km of IKE. Amarc believes the IKE project has the potential to possess the grades and tonnages to develop into an important mining camp.

The IKE deposit discovery has important economic potential as indicated by the copper equivalent grades returned over long continuous drill intercepts, which compare favourably to the range of copper equivalent grades for reserves and resources at operating BC porphyry copper (± molybdenum ± gold ± silver) mines. Selected highlights from Amarc's drill holes at IKE are presented below.