Amarc Resources (AHR.V) has received the assay results from an additional five drill holes that were completed on its IKE copper-molybdenum-silver project in British Columbia. Four of the five holes intersected thick copper-bearing structures with for instance 252 meters containing 0.33% CuEq, 300 meters at 0.17% CuEq and 651 meters at 0.30% CuEq.
Although the thickness of the intersections is excellent, the average grades are still too low to consider IKE a viable project at this point. Fortunately HudBay Minerals (HBM, HBM.TO) is funding the exploration programs as it’s one of the requirements to earn a 60% stake in the property. HudBay has been printing money at its Constancia mine in Peru last quarter, and we think it will be happy to continue spending money at IKE. After all, the drill results indicate there’s a huge and widespread blanket of copper mineralization and although the current average grade is too low, there may be some higher-grade zones on the property.
Amarc Resources is and remains an exploration story and it just needs to find some higher grade zones to make IKE more appealing.