Company Unlocking Opportunity Through Comprehensive 2024 Exploration Programs

Source: Streetwise Reports 11/21/2024

Amarc Resources Ltd. (AHR:TSX.V; AXREF.OB:OTCBB) has concluded its extensive 2024 drilling and survey programs across its three copper-gold districts in British Columbia. Read more about how over 29,000 meters of drilling and advanced surveys position these districts for significant resource potential.

Amarc Resources Ltd. (AHR:TSX.V; AXREF.OB:OTCBB) has concluded its extensive 2024 drilling and survey programs across its three copper-gold districts in British Columbia: Joy, Duke, and Ike. The company reports completing over 29,000 meters of drilling with up to five rigs. This was along with significant geophysical, geochemical, and geological surveys, underscoring its commitment to advancing its portfolio.

At the Joy district, 16,883 meters of core drilling were executed across 40 drill holes targeting deposits like Pine, Canyon, and Northwest Gossan. An additional 19 line kilometers of induced polarization (IP) surveys were conducted. The work was financed through an earn-in agreement with Freeport-McMoRan Mineral Properties Canada, which has invested substantially in the district since 2021. The 2024 Joy district investment is expected to total US$12 million by year-end.

The Duke district saw a two-phase drilling program to delineate deposit targets for future development. This included 4,828 meters of delineation drilling during winter and 5,815 meters during the summer. This was alongside 121 line kilometers of ground IP and airborne geophysical surveys. Boliden Mineral Canada Ltd., through a 2022 earn-in agreement, financed the US$10 million Duke program for 2024.

In the Ike district, Amarc undertook a self-funded program focusing on the high-grade historical Empress deposit. Drilling totaled 1,873 meters in nine holes, complemented by geophysical surveys and reassessment of 23 historical core holes. The 2024 Ike program investment amounted to US$2.9 million. It targeted the extension and confirmation of significant copper-gold grades previously reported.

President and CEO Dr. Diane Nicolson said in the news release, “It has been an incredible year for Amarc as we worked to advance our JOY, DUKE, and IKE Districts. We have completed over 29,000 meters of drilling with up to five rigs operating and also extensive geophysical, geochemical, and geological surveys. I would like to acknowledge the hard work and dedication of the Amarc team, and the support of Freeport and Boliden. Drill results are now flooding in and being assessed in preparation for release over the coming months. We remain extremely enthusiastic about the prospects for these Districts, particularly during a period of positive market sentiment for commodities like gold and copper, which we believe makes Amarc an even more attractive investment opportunity.”

The Gold and Copper Sector

The increasing demand for copper has been cited as a major driver for the mining sector. On November 14, Bloomberg reported that BHP Group’s CEO, Mike Henry, noted that copper demand is expected to rise by 70% to 100% by 2050. He stated that addressing this demand would require US$250 billion in investments over the next decade, highlighting the industry’s challenges with “new deposits in certain key or critical minerals becoming harder to find, more expensive to develop and requiring more by way of capability to manage risk and technical capability.”

“It’s not too late to buy; the company hasn’t reported any assay results from all the summer work, and the market cap is still below CA$45M,” Jeff Clark of Thegoldavisor.com wrote.

The role of innovation in meeting copper demand was addressed on November 15 by Marc Young of Schurco Slurry in a report from Mining Weekly.

He explained that advancements in mineral processing technologies, including the adoption of larger, more robust equipment, have become essential to maintain profitability amid declining copper head grades.

Young elaborated, “Upscaling mine plant throughput volumes creates a requirement for larger and more robust slurry pumps that can handle increased volumes, as well as specialized wear-resistant materials that optimize performance.”

The interplay between global debt, currency policy, and gold’s role in wealth preservation has been at the forefront of recent discussions. On November 17, Matthew Piepenburg highlighted the impact of Donald Trump’s policies and a shifting economic landscape on gold’s trajectory. Piepenburg emphasized that “gold loves chaos and shines brightest when paper money is most embarrassed and unloved.” He noted that the United States’ increasing debt burden, surpassing US$340 trillion globally, signals a potential reckoning for fiat currencies. According to Piepenburg, “Gold’s 2024 rise is not a bull market but rather a fiat bear market.”

The increasing focus on precious metals was further underlined by UBS in a Bloomberg quote from November 20, predicting that “gold will rally to US$2,900 by the end of next year,” in line with calls for further gains from Goldman Sachs, driven by central banks expanding their holdings. This outlook underscores gold’s role as a strategic asset during economic uncertainty.

What’s Driving Amarc?

Amarc Resources Ltd. benefits from substantial strategic partnerships and significant advancements across its three districts, as highlighted in the company’s November 2024 investor presentation. The Joy and Duke districts are supported by earn-in agreements with Freeport-McMoRan Mineral Properties Canada and Boliden Mineral Canada Ltd., providing up to US$200 million in non-dilutive funding. Freeport has already invested over US$20 million through 2023, with continued contributions in 2024, while Boliden allocated US$10 million for this year’s program.

The extensive exploration efforts conducted in 2024, including over US$23 million in drilling and surveys, position Amarc to capitalize on its portfolio of porphyry copper and gold deposits. Each district hosts clusters of drill-ready targets and the potential for significant resource expansion. Rising copper and gold prices provide a favorable market environment, enhancing the value of the company’s exploration programs and discoveries.

Amarc’s operations are further bolstered by its leadership team, which brings decades of experience in porphyry copper discovery and development. The company’s association with Hunter Dickinson Inc. adds expertise and operational capacity, reinforcing Amarc’s capability to advance its projects. As results from this year’s programs are released, these catalysts are expected to drive further development opportunities and interest in the company’s assets.

Third-Party Thoughts On Amarc Resources Ltd.

Amarc Resources received positive recognition for its extensive 2024 drilling and survey programs, with notable commentary from industry experts. Jeff Clark of TheGoldAdvisor.com, writing on November 20, emphasized the scale and progress of the company’s activities, stating, “Amarc has completed their 2024 drill and survey programs at all three copper-gold projects — JOY, DUKE, and IKE.”

Clark noted the substantial funding secured through partnerships with Freeport McMoRan and Boliden Mineral Canada, as well as Amarc’s self-funded work at Ike. He highlighted the company’s strategic approach, adding, “We’ll see a lot of news flow for at least several months, any or all of which could serve as a catalyst.”

Clark also underlined Amarc’s stock performance, noting it had risen 122% year-to-date and 25% since his initial recommendation in September, attributing this growth to the company’s robust drilling results and marketing efforts.

He remarked, “It’s not too late to buy; the company hasn’t reported any assay results from all the summer work, and the market cap is still below CA$45M.” Clark maintained an overweight position in the stock, signaling confidence in its long-term prospects. [OWNERSHIP_CHART-3377]

Ownership and Share Structure

According to Refinitiv, Amarc Resources Ltd. has a total of 220 million shares outstanding and a market capitalization of approximately US$32.43 million as of today.

Refinitiv notes that 20% of the company is held by management and insiders. Executive Chairman Robert Dickinson is the largest shareholder in this category, holding 33 million shares, or 15%.

Institutional investors collectively own 26% of the company. Among them, Sutton Group Inc. holds the largest position with 19% ownership, or 41.8 million shares. Sun Valley Gold LLC owns 7%, equivalent to 15.4 million shares.

Amarc Resources Ltd. remains tightly held, with a significant proportion of shares owned by insiders and strategic investors, reflecting confidence in the company’s potential and operational progress.

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( Companies Mentioned: AHR:TSX.V; AXREF.OB:OTCBB, )

Source: https://www.streetwisereports.com/article/2024/11/21/company-unlocking-opportunity-through-comprehensive-2024-exploration-programs.html