Amarc Resources Ltd. · TSXV:AHR
Amarc Resources — Investor Presentation (January 2019)
66 slides from Amarc Resources's investor presentation, January 2019
Slide 1: Focused on Developing the Next Generation of Copper-Gold Mines
Amarc Resources Ltd. FOCUSED ON DEVELOPING THE NEXT GENERATION OF COPPER-GOLD MINES January 2019
Slide 2: Cautionary and Forward-Looking Statement Information
Cautionary and Forward-Looking Statement Information This presentation includes certain statements that may be deemed "forward-looking statements". All such statements, other than statements of historical facts that address exploration drilling, exploitation activities and other related events or de
Slide 3: Hunter Dickinson Inc. (HDI) & Amarc
Hunter Dickinson Inc. (HDI) & Amarc Who is HDI HDI has successfully created shareholder value for over 35 years A private and diversified, global mining group characterized by the commitment and drive of its founders An integrated team of accomplished geologists, mine-builders and financiers
Slide 4: Amarc – Low Market Capitalization
Amarc – Low Market Capitalization Listed TSXV: AHR OTCBB: AXREF Shares Issued 169 million Management Owns ~19% Working Capital $1.0 million An HDI Company 4
Slide 5: Amarc – Management Team
Amarc – Management Team Working Together Successfully for Decades Bob Dickinson, Executive Chairman Co-Founder of HDI, financially savvy technical expert and “Canadian Mining Hall of Famer” Dr. Diane Nicolson, President Internationally recognized geologist and leader of successful copper and
Slide 6: Why Invest with this Team of Project Advancers?
Why Invest with this Team of Project Advancers? Realized Return on Invested Capital Multiple of Invested Capital Diamonds Note: Refer to appendix for further detail on the respective company / project 1. MOIC calculation = Total Realized Divestments / Total Investments 2. Assets Divested (Sold) 3. A
Slide 7: For Results Like This: Continental Gold, Mt. Milligan
For Results Like This ……… Continental Gold Corp., Milligan Gold-Copper Deposit Image: Mt. Milligan Mine $180 million takeover with a 1700% return Source: Centerra Gold Inc. Rationale / Commentary • Continental Gold received an unsolicited offer of $250 million in 1990 for the project with $180 milli
Slide 8: For Results Like This: Continental Minerals, Xietongmen
For Results Like This ……… Continental Minerals Corp., Xietongmen Copper-Gold Deposit Investment Metrics Investment Year 2004 Exit Year 2011 Hold Period 7 years Total Investment 213 (C$mm) Exit Value (C$mm) 447 MOIC (multiple) 2.1x IRR (percentage) 12% Rationale / Commentary • Asset joint ventured on
Slide 9: AMARC is Focused on Copper-Gold Projects
AMARC is Focused on Copper-Gold Projects Forecasted Supply Deficits are Looming Copper Supply Shortage Looming New Development Projects are Needed to Fill Supply Gap 30 Primary Demand Base Case Production Capability 25 Probable Projects 10 Million 20 Tonne Deficit 15 Mt 10 5 1997 2002 2007 2012 2017
Slide 10: Amarc – Our Stable of Projects
Amarc – Our Stable of Projects What are We Looking for? The next generation of Copper-Gold deposits coveted for acquisition by major producers Located in stable jurisdictions; mineable by bulk tonnage, open pit, with recognized upside These projects must be acquired cost effectively What do We
Slide 11: BC – A Mining Industry Tradition of Porphyry Copper Mines and Projects
BC – A Mining Industry Tradition of Porphyry Copper Mines and Projects Amarc Owns a 100% Interest in the IKE, DUKE and JOY Projects 11 Which Host Multiple Porphyry Cu (± Au, Mo, Ag) Deposit Targets
Slide 12: Amarc – Success and 2019 Goals
Amarc – Success and 2019 Goals Competitive Costs – such as Power & Labour – Enable Moderate Grade Projects RESOURCES AND RESERVES AT SELECTED BC PORPHYRY COPPER MINES AND PROJECTS Name Million Tonnes Cu % Mo % Au g/t Ag g/t CuEQ1 % Red Chris2, A 1,220 0.33 - 0.33 1.1 0.54 New ProsperityB 831 0.23 -
Slide 13: Amarc – Success and 2019 Goals
Amarc – Success and 2019 Goals What will Success Look Like? A resource established equivalent to, or better than the current generation of operating BC copper mines For example 200 million tonnes at a grade of 0.50% CuEQ for starters Our BC projects clearly have that potential and more We wi
Slide 14: What does Wealth Creation Look Like in the Mining Business?
What does Wealth Creation Look Like in the Mining Business? HDI Projects on Average have Returned 3.6x on Invested capital HDI has a track record of And here finding deposits that get us here Amarc is on this part of the curve 14
Slide 15: Amarc – Summary and Value Proposition
Amarc – Summary and Value Proposition Summary AMARC is HDI’s investment vehicle for discovery of major new copper-gold deposits HDI has generated shareholder wealth for decades We know the characteristics of projects that will be in high demand Why AMARC? We know how to acquire high probabil
Slide 16: Amarc – Project Pipeline
Amarc – Project Pipeline Chalcopyrite 16
Slide 17: Amarc – Leverages HDI's Expertise in BC
Amarc - Leverages HDI’s Expertise in BC Hunter Dickinson Inc. has been successfully exploring, developing and operating mines in BC for over 35 years Legacy Projects Golden Bear Mine Mt. Milligan Mine Kemess Mine Taseko Mines Limited Gibraltar Mine New Prosperity Project Aley Project
Slide 18: New Copper Cycle Emerging ….. Again
New Copper Cycle Emerging ….. Again The Crisis of Declining Reserves Investment in the Copper Industry is Highly Cyclical Selected projects1 investment plan2, ‘000t LME 3-month copper price, real (2016$) 3,000 12,000 2,500 10,000 Price 2,000 Investment Plans Right Hand Scale 8,000 Left Hand Scale 1,
Slide 19: The Cupboard is Bare
The Cupboard is Bare Volume Growth will be Challenging: the Project Pipeline has been Depleted Copper mine project pipeline has more than halved Exploration has been increasingly unsuccessful LME Copper (LHS $/t) vs Project Pipeline (RHS indexed)1 Global Copper Resources Growth, 5 year rolling avg Y
Slide 20: Copper Grades are Dropping
Copper Grades are Dropping More and More of the World’s Copper Supply is coming from Lower Grade Deposits Average Copper ore grades mined globally 1.0 0.9 0.8 Ore Grade (%) 0.7 0.6 0.5 0.4 2000 2005 2010 2015 2020 2025 Image Source: Capital Network, Industry data. 20
Slide 21: Amarc – What We Have in the Pipeline
Amarc – What We Have in the Pipeline Amarc Project Pipeline Three porphyry copper projects in BC, Canada IKE, DUKE & JOY IKE & DUKE - New, important-scale copper deposit discoveries; fully permitted for further drilling; in prospective districts with multiple surrounding deposit targets JOY -
Slide 22: Project IKE – Looking Northerly at IKE Deposit
Project IKE – Looking Northerly at IKE Deposit IKE Deposit Mad Major 22
Slide 23: IKE – South-Central BC Location and Infrastructure
IKE – South-Central BC Location and Infrastructure 111 MT (INF) O 0.44 g/t Au, 1.5 million oz 50 Kilometres Reserves Cu Mo Au CuEQ1 Deposit (M Tonnes) (%) (%) (g/t) (%) GibraltarH 700 0.26 0.008 - 0.29 New 831 0.23 - 0.41 0.48 ProsperityB ValleyI 550 0.29 0.008 - 0.32 1. CuEQ calculations use metal
Slide 24: IKE – Amarc Has Acquired a 100% Interest in Claims Over the Entire Mineral District
IKE – Amarc Has Acquired a 100% Interest in Claims Over the Entire Mineral District 10 Kilometres 24
Slide 25: IKE – Assay Results from Holes Drilled by Amarc
IKE – Assay Results from 26 Holes Drilled by Amarc Indicate Important Resource Volumes Plan View of Drill Holes 1,000 Metres Viewpoint A A’ 1,200 Metres 25
Slide 26: IKE – Drill Results Indicate IKE is an Important BC Porphyry Discovery
IKE – Drill Results Indicate IKE is an Important BC Porphyry Discovery Selected Assay Intervals IKE Discovery Drill Holes Drill Hole Interval1,2 (m) CuEQ3 (%) Cu (%) Mo (%) Ag (g/t) 1 247 0.42 0.28 0.030 2.0 2 123 0.41 0.32 0.017 2.5 3 92 0.41 0.31 0.020 2.1 5 194 0.49 0.30 0.046 0.8 6 308 0.40 0.26
Slide 27: IKE – Characteristics of Some Important Cu-Mo Mines
IKE – Characteristics of Some Important Cu-Mo Mines Billion Project Name CuEQ2 (%) Cu (%) Mo (%) Ag (g/t) Tonnes Valley3 1.9 0.29 0.25 0.009 0.7 La Caridad4 4.9 0.31 0.22 0.022 - Sierrita5 4.0 0.30 0.21 0.020 1.3 Morenci5 6.4 0.29 0.26 0.008 - Gibraltar6 1.0 0.28 0.25 0.008 - 1. Amarc has compiled t
Slide 28: Project DUKE – Deposit Discovery
Project DUKE – Deposit Discovery - Disseminated and Fracture Filling Copper-Molybdenum-Silver Mineralization Hole 1 @ 216 m 33 m @0.35% CuEQ1 0.21% Cu, 0.016% Mo, 1.4 g/t Ag, 0.08g/t Au Hole 2 @ 324 m 69 m @0.38% CuEQ1 0.23% Cu, 0.029% Mo, 1.2 g/t Ag, 0.05g/t Au 28 1. Copper equivalent (CuEQ) calcul
Slide 29: DUKE – Central BC Location and Infrastructure
DUKE – Central BC Location and Infrastructure 267 MT (M+I) M 0.35% Cu, 0.17 g/t Au, 0.005% Mo 77 MT (Mined) 257 MT (M+I) N 0.40% Cu, 0.20 g/t Au 30 Kilometres 29
Slide 30: DUKE – Intrusive Rocks are Key to District Copper Mineralization
DUKE – Intrusive Rocks are Key to District Copper Mineralization Claim Outline LYNN DUKE Mineral Property NAK 1971 DUKE Drilling Area Discovery (30 Core Holes) MORRISON 5 Kilometres 30
Slide 31: DUKE – Looking Northeasterly Over 1971 Shallow Drill Holes and Recent Amarc Deep Drill Holes
DUKE – Looking Northeasterly Over 1971 Shallow Drill Holes and Recent Amarc Deep Drill Holes 6 7 1 3 8 1971 4 5 2 Drilling Area 1 Kilometre 31
Slide 32: DUKE – IP Geophysics Has Delineated an Important Scale Mineralized System
DUKE – IP Geophysics Has Delineated an Important Scale Mineralized System IP Chargeability Anomaly A A’ 1 Kilometre 32 * Pole – Dipole; 100 m depth a = 100 m (most lines)
Slide 33: DUKE – Successful Test of Depth Potential
DUKE – Successful Test of Depth Potential With Mineralization Open in All Directions Cross Section A – A’ A A’ Surface 360 M 33
Slide 34: Project JOY – Drill-Ready Porphyry Copper-Gold Deposit Targets
Project JOY –Impressive, Drill-Ready Porphyry Copper-Gold Deposit Targets in the Kemess Mine District HDI Team First to Recognize and Develop the Kemess District, including Discovery of the Kemess South Gold-Copper Mine 34
Slide 35: JOY – North-Central BC Location and Infrastructure
JOY – North-Central BC Location and Infrastructure 150 Kilometres 35
Slide 36: JOY – Property Covers Northern Extension to Kemess Porphyry District
JOY – Property Covers Northern Extension to Kemess Porphyry District Lawyers 620 KT (Mined) J 8.7 g/t Au, 183 g/t Ag Baker Shasta Brenda PINE TREE Sturdee Air Strip MEX 246 MT (Ind) K 0.22% Cu, 0.42 g/t Au Kemess Underground Kemess East January 2018: Centerra Nugget 113 MT (Ind) K Gold purchases Kem
Slide 37: JOY – Extensive Historical Drilling Narrows the Focus For Discovery
JOY – Extensive Historical Drilling Narrows the Focus For Discovery HISTORICAL DRILL INTERCEPTS Drill Int. CuEQ1 Cu Au Ag Hole (m) (%) (%) (g/t) (g/t) A 77 0.39 0.24 0.20 3.6 B 139 0.74 0.13 0.97 2.0 C 122 0.72 0.16 0.91 0.8 D 143 0.48 0.17 0.48 1.9 E 75 0.41 0.14 0.43 1.1 Finlay Magnetic RYAN Corri
Slide 38: JOY – High Quality Targets Delineated for Aggressive 2019 Drilling
JOY – High Quality Targets Delineated for Aggressive 2019 Drilling Extensive 2018 Exploration Surveys Define Eight Drill Deposit Targets in 100 km2 area FINLAY NORTH • Early Season Drill Ready Targets: TREE • Pine Extension • Tree PINE-EXT • Mex Cluster • North Finlay MEX CENTRAL CLUSTER • The Twins
Slide 39: Amarc – 2019 Goals
Amarc – 2019 Goals Advancing Deposit Discoveries & Targets, And Acquisitions Drill at IKE, DUKE to establish mineable shape of deposit discoveries Drill new targets at JOY to make a game changing deposit discovery Opportunistically acquire new projects in stable jurisdictions 39
Slide 40: Amarc – Summary and Value Proposition
Amarc – Summary and Value Proposition Summary AMARC is HDI’s investment vehicle for discovery of major new copper-gold deposits HDI has generated shareholder wealth for decades We know the characteristics of projects that will be in high demand Why AMARC? We know how to acquire high probabil
Slide 41: Appendices
Appendices 41
Slide 42: Project IKE
moe ARC Project IKE
Slide 43: IKE – District-Wide Airborne Magnetic Survey Outlines IKE Magnetic Anomaly
IKE – District-Wide Airborne Magnetic Survey Outlines Disruptive IKE Magnetic Anomaly and Other Compelling Targets Empress Buzzer North Syndicate Buzzer Quinn Rowbottom Mewtwo OMG IKE Magnetic Anomaly Mad Major MMW 4 Kilometres 43
Slide 44: IKE – Detailed Airborne Magnetic Survey Outlines IKE Magnetic Anomaly
IKE – Detailed Airborne Magnetic Survey Outlines 9 Km2 IKE Magnetic Anomaly A A’ IKE Magnetic Anomaly 1 Kilometre 44
Slide 45: IKE – Assay Results Indicate Substantial Resource Potential
IKE – Assay Results from the 26 Holes Drilled Indicate Substantial Resource Potential IKE Discovery Drill Hole Plan IKE Mineralized System Northwest Northeast Viewpoint A A’ WEST Southeast EAST Southwest IKE Magnetic Anomaly 1 Kilometre 45
Slide 46: IKE – Looking Northeasterly Over IKE Discovery
IKE – Looking Northeasterly Over IKE Discovery VIEWPOINT Hole 21 287 m @ 0.39% CuEQ Hole 20 Northwest 148 m @ 0.54% CuEQ Southwest Hole 13 592 m @ 0.44% CuEQ 46
Slide 47: IKE – Assay Results from Holes Drilled by Amarc
IKE – Assay Results from 26 Holes Drilled by Amarc Indicate Important Resource Volumes Plan View of Drill Holes 1,000 Metres Viewpoint A A’ 1,200 Metres 47
Slide 48: IKE – Cross Section A-A', Cu and Mo Grades
IKE – Cross Section A-A’, Looking North Cu and Mo Grades A A’ Viewpoint 48
Slide 49: IKE – Cross Section A-A', CuEQ Grades
IKE – Cross Section A-A’, Looking North CuEQ Grades A A’ Viewpoint 49 1. Copper equivalent calculations use metal prices of: Cu US$3.00/lb, Mo US$12/lb and Ag US18/oz. Metallurgical recoveries and net smelter returns are assumed to be 100%.
Slide 50: IKE – Widespread Mineralization Confirmed by Talus Sampling
IKE – Widespread Mineralization Confirmed by Talus Sampling Giant Cu-Mo-Ag Anomaly at IKE Viewpoint IKE Mineralized System1 Location of 26 Amarc Drill Holes 1 Kilometre 50 1. As outlined by IP chargeability surveying, surface geochemical sampling and 26 core holes.
Slide 51: IKE – IP Surveying Has Delineated an Extensive Sulphide Mineralized System
IKE – IP Surveying Has Delineated an Extensive Sulphide Mineralized System Giant IP Chargeability Anomaly at IKE Extensive Sulphide A A’ Less Sulphide 1 Kilometre IKE Mineralized System IKE Magnetic Anomaly 51
Slide 52: IKE – IP Geophysics Cross Section A – A'
IKE – IP Geophysics Has Delineated an Important Scale Mineralized System Cross Section A – A’ A Legend Viewpoint A’ >500 ppm > 0.20% CuEQ 1 >500 ppm Copper in Talus Drill Hole Copper in Talus IP Sulphide System 1850 Metre Level IP Sulphide System 500 Metres Modelled IP Chargeability Anomaly 1. Coppe
Slide 53: IKE – Northerly View Across 3.5 Km Wide Sulphide System
IKE – Northerly View Across 3.5 Km Wide Sulphide System1 IKE Magnetic Anomaly Viewpoint IKE Mineralized System1 3.0 Km Legend IKE Magnetic Anomaly IKE Mineralized System 3.5 Km IKE Deposit Drill Hole 2018 Drill Hole 1. As outlined by IP chargeability surveying, surface geochemical sampling and 26 co
Slide 54: District Surveys – Talus Fines Analyses – Copper
DISTRICT SURVEYS – Talus Fines Analyses – Copper Empress Buzzer North Buzzer Syndicate Row bottom Quinn Mewtwo OMG Mad Major IKE MMW Copper Results 1 Kilometre 54
Slide 55: District Surveys – IP and Drilling Programs
DISTRICT SURVEYS – IP and Drilling Programs Empress Buzzer North 2 Historical Resource: ~10 Mt @ 0.61% Cu & 0.79 g/t Au Claim Outline Buzzer Syndicate Row bottom A 4 Kilometres Quinn OMG Mewtwo IKE Mad Major B 2017 Drill Hole Results From To Int. CuEQ1 Cu Mo Ag Au Hole# (m) (m) (m) (%) (%) (%) (g/t)
Slide 56: Project DUKE
moe ARC Project DUKE
Slide 57: DUKE – Historical Drill Holes Host Significant Mineralization
DUKE – Historical Drill Holes Host Significant Mineralization 250 Metres A A’ 1991 Core Re-Assay Hole CuEQ2 Interval # (%) (m) H2 0.40 98 H10 0.47 102 H14 0.53 87 H19 0.43 34 1. These 1971 copper equivalent (CuEQ) estimates represent general overall mineral tenor estimates made by Amarc from visual
Slide 58: DUKE – Bell Deposit Comparison Indicates Depth Potential
DUKE – Bell Deposit Comparison Indicates Depth Potential For DUKE Average Depth of 1971 DUKE Drill Holes was Only 90 Metres Bell Deposit Cross Section 250 Metres Bell Deposit’s 615 Metre Depth is 2.4 Times its Surface Width 58
Slide 59: DUKE – Copper Equivalent Values Compare With Operating BC Mines
DUKE – Copper Equivalent Values Compare With Currently Operating BC Mines Cross Section A – A’ A A’ Surface 360 M 1. Copper equivalent (CuEQ) calculations use metal prices: Cu US$3.00/lb, Mo US$12/lb, Ag US$18/oz and Au US$1,300/oz. Metallurgical recoveries and net smelter 59 returns are assumed to
Slide 60: DUKE – Drill Results Indicate Important BC Porphyry Discovery
DUKE – Drill Results Indicate DUKE is an Important BC Porphyry Discovery Selected Assay Intervals DUKE Discovery Drill Holes Interval2,3,4 Drill Hole Incl. From (m) To (m) CuEQ1 (%) Cu (%) Mo (%) Ag (g/t) Au (g/t) (m) 40 130 90 0.35 0.24 0.016 1.1 0.06 incl. 40 73 33 0.41 0.30 0.013 1.4 0.08 210 243
Slide 61: DUKE – Drill Results Indicate Important BC Porphyry Discovery
DUKE – Drill Results Indicate DUKE is an Important BC Porphyry Discovery Selected Assay Intervals DUKE Discovery Drill Holes Interval2,3,4 Drill Hole Incl. From (m) To (m) CuEQ1 (%) Cu (%) Mo (%) Ag (g/t) Au (g/t) (m) 14 344 331 0.34 0.22 0.019 1.0 0.04 incl. 71 232 161 0.40 0.26 0.025 1.1 0.05 5 an
Slide 62: Project JOY
moe ARC Project JOY
Slide 63: JOY – Airborne Magnetic Survey Reveals Compelling Targets
JOY – Airborne Magnetic Survey Reveals Compelling Targets Within and Adjacent to Finlay Magnetic Corridor Finlay Magnetic Brenda Corridor TREE PINE MEX Finlay Magnetic Corridor Kemess Underground Kemess East Nugget 5 Kilometres 63 Kemess South
Slide 64: JOY – Intrusive Stock-Size Magnetic Anomalies and Historical Intercepts
JOY – Intrusive Stock-Size Magnetic Anomalies and Historical Intercepts Indicate Significant Potential HISTORICAL DRILL INTERCEPTS Drill Int. CuEQ1 Cu Au Ag Hole (m) (%) (%) (g/t) (g/t) A 77 0.39 0.24 0.20 3.6 B 139 0.74 0.13 0.97 2.0 C 122 0.72 0.16 0.91 0.8 D 143 0.48 0.17 0.48 1.9 E 75 0.41 0.14
Slide 65: References
References A. Greg Gillstrom P.Eng., Raj Anand, M.Eng. P.Eng., Steve Robertson, P.Geo., “2012 Technical Report on the Red Chris Copper-Gold Project”, February 14, 2012 B. Scott Jones, P.Eng., “Technical Report on the 344 million tonne Increase in Mineral Reserves at the Prosperity Gold-Copper Projec
Slide 66: Contact Information
Contact Information “We operate in a responsible manner so that our activities protect the Health and Safety of our employees and contractors, and of the communities in which we work.” Amarc’s Responsible Mineral Development Policy Dr. Diane Nicolson President Amarc Resources Ltd. Phone: 604-684-636
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