VANCOUVER, Dec. 11, 2012 /PRNewswire/ - Amarc Resources Ltd. ("Amarc" or the "Company") (TSX-V: AHR; OTCBB: AXREF) has received regulatory approval in relation to 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 British Columbia ("BC"), which hold significant exploration potential.
Under the terms of the Letter Agreement, Amarc can acquire up to a 50% ownership interest in the Properties upon making a cash payment and funding exploration expenditures as announced on November 7, 2012. This strategic investment provides Amarc with a cost effective opportunity to participate in projects with strong base and precious metal drill targets that have the potential to provide a significant return for Amarc shareholders.
The Galaxie Project hosts includes the Gnat porphyry copper deposit where an historical estimate of an "Indicated Reserve" of 30 million tonnes grading 0.39% copper was reported in 1972. The deposit remains open to expansion. A targeted drilling program has commenced to test newly identified potential extensions to the Gnat system.
Data is still being received from aggressive exploration programs completed earlier this year at other targets on Galaxie and ZNT, which included prospecting, grid soil geochemical and Induced Polarization ground geophysical surveys. Once all the data has been compiled and reviewed drill targets will be defined.
The historical estimate for the Gnat porphyry deposit was completed by Lytton Minerals Ltd, reported in a Canadian Stock Exchange Listing Statement in 1972. The estimate was based on 83 AQ-size drill holes completed by Lytton and others to that time, and comprises "Indicated Reserves" of 30,387,850 tonnes grading 0.39% copper, including 20% dilution by wallrock grading 0.15% copper. 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.
The approximately 1,300 square kilometre Galaxie Project is located some eight 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, to include a new 287-kV transmission line to a new substation near Bob Quinn Lake. The Northwest Transmission Line is scheduled to connect to the Red Chris copper-gold porphyry mine development project in early 2014, located approximately 42 km south of the Gnat deposit.
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 $6.2 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.
SOURCE Amarc Resources Ltd.