Our Focus on Finding Major Copper-Gold Mines Has Never Been More Impactful
I am pleased to provide information on Amarc Resources Ltd (“Amarc”)
(TSX-V: AHR; OTCQB: AXREF), its activities and focus in anticipation of the upcoming Annual General Meeting (“AGM”) on March 29, 2022.
In April 2021, Goldman Sachs released Green Metals: Copper is the new oil i - an often-cited and influential report that forecasts global copper demand from wind, solar, EVs and battery applications will increase by 600% to 900% by 2030. It is clear to see why: renewable energy uses more than twice as much copper as traditional power generation and EVs use three times as much copper as internal combustion vehicles. Recent public policy announcements in North America and around the world provide even greater impetus to the trend toward continued growth in copper demand.
In 2021, Canada added copper to its list of critical minerals ii and the U.S. made the transition to renewable energy and low-carbon technologies a public policy priority. As noted by well-known economist Patricia Mohr in remarks at the 2022 Vancouver Roundup industry conference, the countries committed to ‘net zero by 2050’ policies at the COP26 conference represent some 70% of global GDP. Mohr also highlighted the growing concern about whether there will be enough metals available to meet these commitments.
It is against this copper supply and demand backdrop that Amarc is pursuing its strategic focus on porphyry copper-gold deposits and the development of long-life, high-value mines. Porphyry deposits are the primary source of copper, with porphyry copper-gold deposits typically returning the highest metal value per tonne among these deposits. Each of Amarc’s IKE, DUKE and JOY districts hosts foundational copper±gold deposits that are prime for moving toward development and, also, multiple porphyry copper-gold deposit targets that are ready for drill discovery. The JOY, IKE and DUKE Districts are positioned to both help fill the growing global supply gap in copper and to benefit from the opportunity for investment and cash flow diversification delivered by their exposure to gold.
Located on the northern extension of the prolific Kemess porphyry Cu-Au district, in the active Toodoggone portion of north-central BC’s Golden Horseshoe trend, Amarc’s JOY Cu-Au District hosts the PINE Cu-Au deposit, which is open to expansion, the MEX Cu-Au deposit target and a pipeline of other high potential porphyry Cu-Au deposit targets. In 2021, Amarc announced a strategic partnership with Freeport-McMoRan Mineral Properties Canada Inc. (“Freeport”), a wholly owned subsidiary of Freeport-McMoRan Inc. A foremost copper developer and miner, Freeport is now a key funder and partner in Amarc’s campaign to realize the considerable copper-gold district potential at JOY. Over the course of the successful 2021 field season, Freeport accelerated its first-year investment into JOY by ~50% – from $4 million to $5.94 million. Several members of Freeport’s senior exploration management team have visited the site, strengthening the alliance between the companies, and capitalizing on the depth of porphyry copper-gold deposit discovery knowledge each possesses. We welcome further collaboration with Freeport in a second drill season at JOY in 2022.
Situated in southern BC, in the heartland of Canada’s copper production (including the Valley, New Afton and Gibraltar mines), Amarc’s IKE Cu-Au District hosts the major IKE Cu-Mo-Ag deposit discovery and the Empress Cu-Au-Ag deposit (both of which are open to expansion), in addition to a pipeline of Cu-Au±Mo±Ag deposit and exploration targets. Amarc’s DUKE District is located within the Babine Region in central BC, one of BC’s most prolific porphyry Cu-Au belts. The DUKE District hosts the DUKE Cu-Mo-Ag±Au deposit, which is open to expansion, and a series of compelling porphyry Cu-Au deposit-scale exploration targets that demonstrate the property’s district potential. Importantly, each of the three districts in Amarc's portfolio is located in proximity to industrial infrastructure – including power, highways and rail.
Establishing respectful relationships and mutually beneficial partnerships with Indigenous people is a priority for Amarc, and we were pleased to realize two important agreements in 2021. In April, Amarc and the Lake Babine First Nation entered an agreement that will guide ongoing interactions with respect to the DUKE Cu-Au District. The agreement defines how respectful and productive engagement between the parties should proceed, as well as an approach for cooperative planning and achieving mutual benefit. In June, Amarc entered into a four-way exploration agreement with Takla Nation, Tsay Keh Dene Nation and Kwadacha Nation to guide engagement and information sharing regarding the JOY Cu-Au District. It also establishes a pathway for negotiating future agreements to support more advanced stages of development at JOY, while delivering opportunities for employment, contracting and participation in environmental monitoring. The Tsay Keh Dene, Kwadacha, Takla and Tahltan Nations were all active participants in Amarc’s ambitious 2021 field program at JOY.
We look forward to working collaboratively with partners, local communities and contractors in an active 2022.
ON BEHALF OF THE BOARD OF DIRECTORS OF AMARC RESOURCES LTD.
Diane Nicolson
Dr. Diane Nicolson
President and CEO
This letter and other AGM materials are posted at www.amarcresources.com/investors/overview/ and on Amarc’s profile at www.sedar.com. Further details on Amarc and its properties can also be obtained by visiting our website at www.amarcresources.com or by contacting Dr. Diane Nicolson, President and CEO, at (604) 684-6365 or within North America at 1-800-667-2114.
This letter includes certain statements that may be deemed "forward-looking statements". All such statements, other than statements of historical facts that address exploration plans and plans for enhanced relationships 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. Assumptions used by the Company to develop forward-looking statements include the following: Amarc's projects will obtain all required environmental and other permits and all land use and other licenses, studies and exploration of Amarc's projects will continue to be positive, and no geological or technical problems will occur. 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, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and tenure and delays due to third party opposition, changes in and the effect of government policies regarding mining and natural resource exploration and exploitation, exploration and development of properties located within Aboriginal groups asserted territories may affect or be perceived to affect asserted aboriginal rights and title, which may cause permitting delays or opposition by Aboriginal groups, continued availability of capital and financing, and general economic, market or business conditions, as well as risks relating to the uncertainties with respect to the effects of COVID-19. 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 Amarc'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.