Amarc and Quartz Mountain Amend ZNT and Galaxie Joint Venture Agreement
VANCOUVER, July 5, 2013 /PRNewswire/ – Amarc Resources Ltd (“Amarc“) (TSX-V: AHR; OTCBB: AXREF) and Quartz Mountain Resources Ltd. (“Quartz Mountain“) (TSX-V: QZM; OTCBB: QZMRF) announce they have entered into an
amendment agreement (the “Amendment”) with respect to their previously
executed joint venture agreement (the “JV Agreement”) on the ZNT and
Galaxie properties (the “Properties”) located in central and northern
British Columbia (“BC”).
Under the terms of the Amendment, Amarc has the right to acquire a
controlling interest in both properties by funding surface exploration
programs to be completed during the 2013 field season. ZNT is
considered to hold significant potential for the discovery of bulk
tonnage-style silver deposits and Galaxie for porphyry copper deposits.
Under the terms of the Amendment, Amarc and Quartz Mountain have agreed
that the current single joint venture between the companies will be
divided into two separate joint ventures, namely the “Galaxie Joint
Venture” and the “ZNT Joint Venture”, effective June 26, 2013. Each
joint venture will continue to be governed by the terms of the JV
The parties have also agreed to amend the option granted by Quartz
Mountain to Amarc under the original terms of the JV Agreement. Under
the amended terms, Amarc has an option until October 31, 2013 to
increase its interest in both the ZNT and Galaxie joint ventures from
its current 40% interest to a 60% ownership interest by funding
exploration expenditures of $210,000 and $235,000, respectively.
Effective immediately, Amarc is appointed operator of both joint
ventures. The field programs have been permitted and are expected to
commence at ZNT in the next few weeks followed by work at Galaxie in
late July through August.
The transactions contemplated by the Amendment are subject to regulatory
The ZNT and Galaxie Properties
The 389-square kilometre ZNT property, located near Smithers in central BC, was staked by Quartz Mountain on
the basis of significant zinc concentrations in regional till samples
as reported by Geoscience BC. In late 2012, approximately 2,400 grid
soil geochemical samples and 20 line kilometres of Induced Polarization
(“IP”) ground geophysical survey were completed. These initial
exploration activities defined a new and unusually strong silver and
multi-element-in-soils anomaly measuring 1.8 kilometres by 1.2
kilometres, within a more extensive and open ended anomalous trend.
This significant silver anomaly is coincident with an extensive IP
geophysical chargeability anomaly indicating the presence of an
important scale mineralizing system.
The Galaxie property, located some 24 kilometres south of the community of Dease Lake BC,
lies within the Stikine Terrane of northwestern BC, a well-endowed belt
of rocks that hosts a number of important copper and gold deposits such
as Red Chris, Schaft Creek, Galore and
Kerr-Sulphurets-Mitchell-Snowfields and Brucejack.
The 1,200-square kilometre Galaxie property hosts known copper
occurrences such as the Gnat deposit, and has excellent exploration
potential. Integrated field surveys, including soil-grid, rock and
silt geochemical sampling, and some 290-line kilometres of IP
geophysical survey targeted five areas in 2012. One of these targets,
the Hotai prospect, located in the southern part of the Galaxie
property and largely covered by glacial sediments, will be the focus of
At Hotai, three discrete and large-scale IP chargeability anomalies
lying beneath cover were defined by last year’s surveys. The
southernmost of these chargeability anomalies occurs over 750 metres by
1,700 metres and is coincident with a positive magnetic feature. A
diorite outcrop situated peripherally to this chargeability anomaly
hosts copper-bearing quartz veinlets. The second chargeability target
to the north measures approximately 1,100 metres by 1,700 metres and is
coincident with a pronounced annular magnetic high feature with a
central magnetic low, a type of magnetic feature that is classically
associated with porphyry copper deposits. In addition, a third
potential mineralized system occurs to the northeast of these two
target-areas, where a significant copper and multi-element-in-soils
anomaly exists over 1,000 metres by 1,750 metres. This target is
associated with a strong IP chargeability anomaly.
Mark Rebagliati, P. Eng., a Qualified Person as defined under National
Instrument 43-101, has reviewed the technical content of this release.
In other news, Quartz Mountain has elected to not proceed with its
option on the Buck Property located in central BC.
About the Companies
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
ON BEHALF OF THE BOARDS
Robert Dickinson Scott Cousens Chairman Chairman Amarc Resources Ltd. Quartz Mountain Resources Ltd.
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 Amarc Resources Ltd. and Quartz
Mountain Resources Ltd. believe 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. and Quartz Mountain Ltd., investors
should review each company’s annual Form 20-F filing with the United
States Securities and Exchange Commission at www.sec.gov and their home jurisdiction filings that are available at www.sedar.com.
SOURCE Amarc Resources Ltd.