Amarc Resources (AHR.V) has announced Freeport McMoRan (FCX), the senior copper producer, has boosted its exploration budget for the first year of the exploration alliance in the JOY district. Whereas Freeport was originally looking to spend C$4M, the budget has now been increased to C$5.5M.
This year’s exploration program will focus on deposit delineation on some of the known mineralized zones at the JOY property, of which the Pine and Mex copper-gold deposits are the most advanced. This summer’s exploration program will be rather comprehensive with Amarc planning to not just complete geochemical and geophysical surveys, but also to complete a core drill program.
As a reminder, Freeport has entered into a 10-year agreement whereby it may earn an interest of up to 70% in the JOY copper district. To earn an initial 60% interest in the district, Freeport will have to complete C$35M in exploration within the first five years of signing the agreement (so by May 2026). Upon establishing its 60% stake, Freeport can elect to increase its stake to 70% by funding an additional C$75M in work on the project within an additional five years.
Disclosure: The author has no position in either Amarc or Freeport at this time. Please read our disclaimer.
