EX-99.2 3 ahr_ex992.htm EX-99.2 ahr_ex992.htm

 

 

AMARC RESOURCES LTD.

 

MANAGEMENT'S DISCUSSION AND ANALYSIS

 

FOR THE NINE MONTHS ENDED DECEMBER 31, 2023

 

 

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

1.1

 DATE

 

1

 

 

 

 

 

 

1.2

 OVERVIEW

 

2

 

 

 

 

 

 

1.3

 SELECTED ANNUAL INFORMATION

 

28

 

 

 

 

 

 

1.4

 SUMMARY OF QUARTERLY RESULTS

 

29

 

 

 

 

 

 

1.5

 RESULTS OF OPERATIONS

 

29

 

 

 

 

 

 

1.6

 LIQUIDITY

 

31

 

 

 

 

 

 

1.7

 CAPITAL RESOURCES

 

32

 

 

 

 

 

 

1.8

 OFF-BALANCE SHEET ARRANGEMENTS

 

32

 

 

 

 

 

 

1.9

 TRANSACTIONS WITH RELATED PARTIES

 

32

 

 

 

 

 

 

1.10

 PROPOSED TRANSACTIONS

 

33

 

 

 

 

 

 

1.11

 CRITICAL ACCOUNTING ESTIMATES

 

33

 

 

 

 

 

 

1.12

 CHANGES IN ACCOUNTING POLICIES INCLUDING INITIAL ADOPTION

 

33

 

 

 

 

 

 

1.13

 FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS

 

34

 

 

 

 

 

 

1.14

 OTHER MD&A REQUIREMENTS

 

34

 

 

 

 

 

 

1.14.1

 ADDITIONAL DISCLOSURE FOR VENTURE ISSUERS WITHOUT SIGNIFICANT REVENUE

 

34

 

 

 

 

 

 

1.14.2

 DISCLOSURE OF OUTSTANDING SHARE DATA

 

34

 

 

 

 

 

 

1.14.3

 DISCLOSURE CONTROLS AND PROCEDURES

 

35

 

 

 

 

 

 

1.14.4

 INTERNAL CONTROLS OVER FINANCIAL REPORTING PROCEDURES

 

35

 

 

 

 

 

 

1.14.5

 LIMITATIONS OF CONTROLS AND PROCEDURES

 

35

 

 

 

 

 

 

1.15

 RISK FACTORS

 

36

 

 

 

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

1.1 DATE

 

This Management's Discussion and Analysis ("MD&A") should be read in conjunction with the audited consolidated financial statements (the “Annual Financial Statements”) of Amarc Resources Ltd. (“Amarc”, or the “Company”) for the year ended March 31, 2023, and the unaudited condensed consolidated interim financial statements (the “Financial Statements”) of the Company for the nine months ended December 31, 2023, both which are publicly available on SEDAR at www.sedarplus.ca. All monetary amounts herein are expressed in Canadian Dollars ("CAD") unless otherwise stated.

 

The Company reports in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IASB") and interpretations of the IFRS Interpretations Committee (together known as "IFRS"). The following disclosure and associated Financial Statements are presented in accordance with IFRS.

 

This MD&A is prepared as of February 28, 2024.

 

 

Cautionary Note to Investors Concerning Forward-looking Statements

 

This news release includes certain statements that may be deemed "forward-looking statements". All such statements, other than statements of historical facts that address exploration plans and plans for enhanced relationships are forward-looking statements. Although the Company believes 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. Assumptions used by the Company to develop forward-looking statements include the following: Amarc's projects will obtain all required environmental and other permits and all land use and other licenses, studies and exploration of Amarc's projects will continue to be positive, and no geological or technical problems will occur. 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, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and tenure and delays due to third party opposition, changes in and the effect of government policies regarding mining and natural resource exploration and exploitation, exploration and development of properties located within Aboriginal groups asserted territories may affect or be perceived to affect asserted aboriginal rights and title, which may cause permitting delays or opposition by Aboriginal groups, 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., investors should review Amarc's annual Form 20-F filing with the United States Securities and Exchange Commission at www.sec.gov and its home jurisdiction filings that are available at www.sedarplus.ca. 

 

 

 
-1-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

 

1.2 OVERVIEW

 

Amarc is a mineral exploration and development company with an experienced and successful management team focused on developing a new generation of long life, high value British Columbia (“BC”) porphyry copper-gold (“Cu-Au”) mines. By combining high demand projects with successful management, Amarc has created a solid platform to create value from its exploration and development stage assets.

 

Amarc is advancing its JOY, DUKE and IKE porphyry Cu±Au deposit districts located in northern, central and southern BC, respectively. The JOY, DUKE and IKE Districts represent significant potential for the development of multiple and important-scale, porphyry Cu±Au deposits. Importantly, each of the three districts is located in proximity to industrial infrastructure – including power, highways and rail.

 

LOCATION OF THE COMPANY'S JOY, DUKE and IKE DISTRICTS

 

 

Amarc’s 100%-owned, 495 km2 JOY District covers the northern extension of the prolific Kemess porphyry Cu-Au district (the “Kemess District”) in the Toodoggone region of north-central BC. A geological region with high potential for important porphyry and epithermal deposits, the Toodoggone is part of BC's Golden Horseshoe, which includes the Golden Triangle to the west.

 

 
-2-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

The JOY claims are located approximately 20 km north of the former Kemess South Mine and the government approved Kemess underground project (“Kemess District”), owned by, Centerra Gold Inc. (“Centerra”) which purchased the Kemess District from AuRico Metals Inc. for $310 million1 in mid 2017. Amarc’s JOY District is host to the open-ended PINE porphyry Cu-Au deposit (the “PINE Deposit”) and a pipeline of other large and high potential, district porphyry Cu-Au targets, which cluster on the property.

 

Amarc has entered into an alliance with Freeport-McMoRan Minerals Properties Canada Inc. (“Freeport”), a wholly owned subsidiary of Freeport-McMoRan Inc., to efficiently advance the JOY District. Under the terms of the agreement Freeport may acquire up to a 70% ownership interest by making staged investments totalling $110 million. Freeport increased its Year 1 contribution in the 2021 JOY exploration program by ~50% – from $4 million to $5.94 million, and in 2022 continued its earn-in completing a second drilling season funding approximately $14 million of work, for its Year 2 contribution. The 2023 program was specifically designed to inform intended District-wide drilling in 2024. Amarc is the project operator.

 

To date, the Amarc exploration team has completed 19,759 m of helicopter-supported drilling and extensive airborne and surface surveys at JOY with Freeport, identifying several mineralized trends across the JOY District and indicating the potential for clustered porphyry deposits that remain to be fully explored. In addition, the mineralization at the PINE Deposit has been expanded over 1,700 m, substantial new porphyry Cu-Au mineralization has been discovered at the largely overburden covered Canyon deposit target; and widely spaced initial scout drilling of the Twins sulphide system encountered widespread porphyry Cu-Au mineralization, highlighting significant exploration potential.

 

In late May 2023, Amarc launched an exploration program that included extensive airborne and surface surveys focused on the detailed refinement of multiple porphyry Cu-Au deposit targets clustered along the mineralized trends that extend over the 495 km2 property, in preparation for an extensive intended drilling program in 2024. This program also included the rehabilitation of road and bridge access to the PINE Cu-Au Deposit in the centre of the JOY tenure and other deposit targets to facilitate the  2024 drilling, for which planning is underway. The 2024 program is fully funded by Freeport.   

 

Amarc’s 722 km2 DUKE District is located 80 km northeast of Smithers within the broader Babine Region, one of BC’s most prolific porphyry Cu-Au belts. The Babine Region, a 40 by 100 km north- northwesterly striking mineralized belt is host to Noranda Mines’ past producing Bell and Granisle Cu-Au mines that produced a total of 1.1 billion pounds of Cu, 634,000 ounces of Au and 3.5 million ounces of Ag2, and the advanced stage Morrison Cu-Au deposit. The DUKE District includes both the DUKE porphyry Cu deposit discovery and a series of high potential porphyry Cu-Au deposit targets generated from the Company’s comprehensive district scale targeting programs.

 

In late calendar 2022, Amarc entered into a funding agreement on the DUKE District with Boliden Mineral Canada Ltd. (“Boliden”), a wholly-owned subsidiary of the Boliden Group. Under the terms of the Agreement, Boliden may earn up to a 70% ownership interest, by making staged exploration and development investments totalling $90 million. Boliden can earn an initial 60% interest by funding $30 million of exploration and development expenditures within four years of the effective date of the Agreement, of which CDN$5 million is a committed amount. Boliden invested $10 million through to the end of 2023 and will invest an additional $10 million through to the end of 2024. Amarc is the project operator.

_____________________

1 Centerra Gold Inc. news release January 8, 2018.

2 MINFILE Number 093L 146 and 093M 001 MINFILE Production Detail Report, BC Geological Survey, Ministry of Energy and Mines, BC.

 

 
-3-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Having concluded the Boliden agreement, Amarc initiated delineation drilling at the DUKE Deposit completing 11,070 m between early December 2022 and mid-March 2023. This drilling increased the size of the DUKE Deposit porphyry Cu–Mo-Ag-Au system, and also Amarc’s understanding of the controls on mineralization in the DUKE District. In May 2023, Amarc remobilized its exploration team and completed extensive airborne and ground exploration surveys designed to assess 16 prioritized porphyry Cu-Au targets across the DUKE District. These surveys defined the highest priority  targets for 2024 drill testing, which include the Svea deposit target that shares many attributes with some of the premier deposits and occurrences within the Babine Cu-Au Region. In January, Amarc initiated an extensive 2024 drill program; this winter drilling phase is focused on the DUKE Deposit and the surrounding 4.7 km

2 DUKE Target.  Planning for further drilling in the summer of 2024 is underway.

 

The 673 km2 IKE District, also 100% owned by Amarc, is located 33 km northwest of the historical mining community of Gold Bridge, and near the heartland of BC’s producing porphyry Cu mines. The greater IKE District includes Amarc’s porphyry Cu-Mo-Ag deposit discovery (the “IKE Deposit”); the high potential Greater Empress Cu-Au Project (the “Greater Empress” area) that hosts the Empress Cu-Au-Ag deposit (the “Empress Deposit”) and other significant porphyry Cu-Au-Mo-Ag and Cu-Au-Ag replacement deposit targets; and also, a number of promising porphyry Cu and epithermal Au-Ag targets. The IKE District shares many characteristics with porphyry districts around the globe that host major, and commonly multiple, Cu±Au±Mo±Ag deposits and has the potential to develop into an important mining camp.

 

It is Amarc’s intent to undertake in 2024 a well-planned core drilling program at the Empress and Empress East Deposits to expand the higher grade Cu-Au mineralization which remains open. The Company has the required drill and Induced Polarization (“IP”) permits in hand for the proposed work programs and is working to consult with First Nations in the region.

 

Amarc works closely with local governments, indigenous groups and other stakeholders in order to advance its mineral projects responsibly, and to do so in a manner that contributes to sustainable community and economic development. We pursue early and meaningful engagement to ensure our mineral exploration and development activities are well coordinated and broadly supported, address local priorities and concerns, and optimize opportunities for collaboration. In particular, we seek to establish mutually beneficial partnerships with indigenous groups within whose traditional territories Amarc projects are located, through the provision of jobs, training programs, contract opportunities, capacity funding agreements and sponsorship of community events. All Amarc’s work programs are carefully planned to achieve high levels of environmental and social performance.

 

The JOY Cu-Au District

 

Amarc’s 100%-owned 495 km2 JOY District covers the northern extension of the prolific Kemess porphyry Cu-Au district (the “Kemess District”) in the Toodoggone region of north-central BC (see May 15, 2020 news release and the Company’s website at www.amarcresources.com/projects/joy-project). A geological region with high potential for important porphyry and epithermal deposits, the Toodoggone is part of BC's Golden Horseshoe, which includes the Golden Triangle to the west.

 

 
-4-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Through its association with HDI, Amarc's technical team was first to recognize the Kemess District's true porphyry potential, acquiring both Kemess North and Kemess South as early-stage prospects and advancing both to significant porphyry Cu-Au deposits. Kemess South was sold on beneficial terms to a predecessor of Northgate Minerals, which brought the deposit into production. Northgate Minerals produced 3 million ounces of Au, and 750 million pounds of Cu over a 13-year period to 20113 from Kemess South mine (BC’s third largest Au producer). The southern area of the Kemess District, now owned by Centerra, includes the government-approved Kemess Underground Project (the deeper higher-grade extension of the Kemess North deposit), the advanced stage Kemess East deposit as well as the mined-out Kemess South deposit. The resource road that services Centerra’s deposits and the historical Lawyers and Shasta Au-Ag mines, also provides access to Amarc’s JOY District.

 

JOY District Highlights

 

The PINE Deposit in the JOY District has seen several phases of historical drilling. Early work by Amarc identified significant expansion potential at both the PINE Deposit and the MEX deposit target that required drill testing. In addition, Amarc defined seven large (approximately 1 to 5 km2), high potential porphyry Cu-Au exploration target areas, each of which hosts multiple targets that were either drill-ready, or could rapidly be brought up to a drill ready status by the completion of focused surface surveys. A highly effective targeting strategy was initially achieved by combining and interpreting information from the Company’s exploration surveys and extensive historical datasets. These datasets include results from soil geochemical sample grids, airborne magnetics and ground IP geophysical surveys, geological and alteration mapping and historical drilling. The large historical soils geochemical database (6,390 samples) was of particular use.

 

The JOY technical information up and including 2020 is summarized in the Company’s National Instrument 43-101 Technical Report (“JOY Technical Report”) filed under Amarc’s profile at www.sedarplus.ca and on the Company’s website at www.amarcresources.com/projects/joy-project/technical-report.  

 

In 2021, Amarc work crews completed a comprehensive exploration program at JOY, which was designed to advance the PINE Deposit delineation and assess several of the defined important-scale mineral systems (Amarc release November 15, 2021). This program included the drilling of 4,300 m (9 core holes) and the relogging of over 60 historical core drill holes mainly from the PINE porphyry Cu-Au deposit, along with 42 line-km of IP geophysical survey, 684 grid soil geochemical samples and 179 rock geochemical samples collected during geological traverses over a number of the target areas.

 

During the 2022 field season, Amarc completed 15,427 m (37 core holes) of helicopter supported drilling with the goal of expanding the known mineralization at the PINE Deposit while commencing drill testing of a number of deposit scale Cu-Au targets clustered across the JOY District (Amarc releases October 11, 2022 and March 2, 2023).  In addition, further ground survey work that included 56.3 line-km of IP geophysics and the collection of 2,648 soil and 313 surface rock samples for geochemical analyses, was undertaken. These survey results integrated with previously completed Amarc and historical survey data continued to discover and expand clusters of large sulphide-bearing hydrothermal systems delineating new targets for drill testing (Amarc release January 23, 2023).

__________________________

3SRK Consulting (Canada) Inc. 2013 NI-43-101 Technical Report on the Kemess Underground Project, British Columbia, Canada, AuRico Metals Ltd.

Sedar

 

 
-5-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

The 2023 field program was designed to inform the 2024 drilling plans and included extensive airborne and surface exploration surveys, focused on the detailed refinement of multiple porphyry copper-gold deposit targets clustered along mineralized trends across the JOY District (Amarc release October 26, 2023). The final results from these comprehensive surveys are being received and integrated into existing datasets.. The principal components of the 2023 surveys were:

 

·

 30 km2 of ground-based MT geophysics;

·

 72.5 line-km of Induced Polarization ground geophysics;

·

 465 geological survey traverse-km;

·

 769 systematic rock chip samples for assay; and

·

 1,788 grid soil samples for assay.

 

In addition to facilitate future drilling, rehabilitation of exploration trail and bridge access to the PINE Cu-Au Deposit in the centre of the JOY tenure and other deposit targets was completed.

 

Expanding the PINE Porphyry Cu-Au Deposit

 

Building on information derived mainly from the team’s relogging of the historical core, Amarc completed in 2021 its first ever drilling at the PINE Deposit, which comprised three long core holes (up to 701 m in length) (Amarc release March 7, 2022). These holes intercepted significant mineralization over a strike length of 1,100 m and to a vertical depth of at least 550 m (Amarc release March 7, 2022), within an expansive 6 km2 hydrothermal mineralizing system as outlined by IP geophysical surveys. Notably, the PINE system remained open to expansion, with most of this prospective area concealed under a cover of broadly distributed glacial deposits.

 

Amarc’s 2021 drill holes at the PINE Deposit intercepted some of the highest grade of Cu-Au mineralization over the longest intervals encountered to date. Highlights from this 2021 PINE Deposit core drilling include:

 

·

 101.90 m of 0.56% CuEQ4 (0.23% Cu, 0.57 g/t Au and 2.4 g/t Ag)

·

 29.00 m of 0.46% CuEQ (0.20% Cu, 0.44 g/t Au and 2.1 g/t Ag)

·

 66.60 m of 0.40% CuEQ (0.21% Cu, 0.32 g/t Au and 1.5 g/t Ag)

·

 244.10 m of 0.35% CuEQ (0.11% Cu, 0.41 g/t Au and 1.2 g/t Ag)

·

 135.00 m of 0.44% CuEQ (0.14% Cu, 0.53 g/t Au and 1.2 g/t Ag)

 

4 See Table 1, Note 4 - copper equivalent (CuEQ) calculations use metal prices of: Cu US$4.00/lb, Au US$1,800.00/oz, and Ag US$24.00/oz and conceptual recoveries of: Cu 85%, Au 72% and 67% Ag.

 

A majority of the 60+ mainly short and, frequently, widely spaced historical core holes at the PINE Deposit (80% of which extend to <200 m vertical depth) are collared within a restricted 900 x 600 m area. Reinterpretation of historical drill holes and the new holes drilled by Amarc showed good potential to expand the PINE Deposit internally (between the widely spaced drill holes), laterally (beyond the footprint of current drilling) and to depth.

 

Further to the open-ended nature of the PINE Deposit, significant potential for the discovery of other centres of porphyry Cu-Au mineralization within the area of the overall PINE mineralized system were also identified. Amarc's hole JP21009, located 500 m northeast of the PINE Deposit, returned 244 m of 0.35% CuEQ4 (0.11% Cu, 0.41 g/t Au and 1.2 g/t Ag), including 135 m of 0.44% CuEQ (0.14% Cu, 0.53 g/t Au and 1.2 g/t Ag), indicating high potential to the northeast. Historical drilling also indicated significant potential to the southwest of the PINE Deposit. For example, the historical hole located furthest away to the southwest but within the current known limits of the PINE system (PIN09-04) returned 105 m at 0.17% CuEQ (0.08% Cu, 0.15 g/t Au and 1.1 g/t Ag) (Amarc release March 7, 2022).

 

 
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AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

The eleven core holes (up to 781 m in length) completed at the PINE Deposit in 2022 were located to follow up on the successful 2021 drilling and to further expand the mineralization at the deposit and to identify areas of higher grade within the expansive 6 km2 PINE mineralized system (Amarc releases August 24, 2022 and March 2, 2023). This drilling successfully intercepted significant mineralization that extended the footprint of the deposit over a strike length of 1,700 m (Table 1 and Amarc release March 2, 2023). Furthermore, outboard, wider spaced and mainly historical drilling indicates the potential to expand this footprint to over 2,600 m. In addition, the drilling is highlighting the favorable geometry of the PINE Deposit, with the majority of known mineralization occurring from surface to 300 m depth, and locally extending to 550 m depth. The larger 6 km2 mineralized system that hosts the PINE Deposit, and its expansion potential remains to be fully explored.

 

Highlights from 2022 PINE Deposit drilling include:

 

·

 204 m of 0.42% CuEQ4 (0.18% Cu, 0.41 g/t Au and 2.3 g/t Ag)

·

 105 m of 0.40% CuEQ (0.13% Cu, 0.47 g/t Au and 2.3 g/t Ag)

·

 107 m of 0.31% CuEQ (0.09% Cu, 0.37 g/t Au and 1.2 g/t Ag)

·

 179 m of 0.32% CuEQ (0.11% Cu, 0.36 g/t Au and 1.2 g/t Ag)

 

Notably, additional centers of higher Cu-Au grade are beginning to emerge along the 1,700 m PINE Deposit trend. For example, Amarc drilling in the northeastern area of this trend has intersected significant porphyry mineralization over 600 m of strike length, including:

 

·

 63 m of 0.44% CuEQ4, within 179 m of 0.32% CuEQ (JP22017)5

·

 57 m of 0.40% CuEQ, within 107 m of 0.31% CuEQ (JP22015)

·

 135 m of 0.44% CuEQ, within 244 m of 0.35% CuEQ (JP21009 completed in 2021)

 

5 Grade for each element that comprises the CuEQ for holes JP22017, JP22015 are shown in Table 1 and for JP21009 is 0.14% Cu, 0.53 g/t Au and 1.2 g/t Ag.

 

 
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AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Table 1: JOY 2022 DRILL PROGRAM ASSAY RESULTS

 

Target

Drill

Hole5

Azim

(°)

Dip

(°)

EOH

(m)

Incl.

 

From

(m)

To

(m)

Int.123

(m)

CuEQ4

(%)

Cu

(%)

Au

(g/t)

Ag(g/t)

PINE

JP22010

265

-60

681.00

 

 

18.96

223.03

204.07

0.42

0.18

0.41

2.3

 

 

 

 

Incl.

 

18.96

49.35

30.39

0.44

0.12

0.55

2.0

 

 

 

 

Incl.

 

84.83

223.03

138.20

0.48

0.22

0.43

2.8

 

 

 

 

and

 

84.83

128.95

44.12

0.58

0.26

0.53

3.3

 

 

 

 

and

 

141.82

223.03

81.21

0.51

0.24

0.45

2.9

 

 

 

 

 

 

258.00

296.70

38.70

0.51

0.25

0.44

2.7

 

 

 

 

Incl.

 

258.00

285.81

27.81

0.62

0.29

0.54

3.3

 

 

 

 

 

 

455.51

505.79

50.28

0.34

0.15

0.32

1.7

PINE

JP22011

265

-60

637.78

 

 

35.00

65.00

30.00

0.22

0.06

0.27

1.5

 

 

 

 

 

 

386.00

542.00

156.00

0.36

0.20

0.25

2.5

 

 

 

 

Incl.

 

386.00

458.00

72.00

0.44

0.23

0.35

2.9

 

 

 

 

Incl.

 

494.00

539.00

45.00

0.41

0.24

0.25

2.8

PINE

JP22012

265

-60

597.00

 

 

41.50

54.52

13.02

0.26

0.12

0.22

2.0

 

 

 

 

 

 

73.00

141.00

68.00

0.31

0.13

0.29

2.0

 

 

 

 

Incl.

 

126.00

141.00

15.00

0.49

0.20

0.49

2.7

 

 

 

 

 

 

221.40

354.00

132.60

0.32

0.15

0.26

2.4

 

 

 

 

Incl.

 

221.40

301.48

80.08

0.35

0.17

0.30

2.7

PINE

JP22013

265

-60

516.00

 

 

48.00

153.00

105.00

0.40

0.13

0.47

1.8

 

 

 

 

Incl.

 

59.20

96.00

36.80

0.44

0.16

0.48

2.3

 

 

 

 

Incl.

 

114.00

153.00

39.00

0.46

0.12

0.59

1.4

 

 

 

 

 

 

177.00

189.51

12.51

0.42

0.12

0.52

1.3

 

 

 

 

 

 

226.14

303.00

76.86

0.30

0.14

0.27

1.4

 

 

 

 

Incl.

 

226.14

245.41

19.27

0.45

0.14

0.54

1.4

PINE

JP22014

270

-60

594.00

 

 

27.00

42.00

15.00

0.28

0.10

0.31

1.3

 

 

 

 

 

 

62.05

167.00

104.95

0.25

0.10

0.26

1.3

 

 

 

 

Incl.

 

66.00

84.00

18.00

0.34

0.11

0.40

1.2

 

 

 

 

Incl.

 

111.00

141.00

30.00

0.33

0.12

0.37

1.7

PINE

JP22015

90

-60

647.00

 

 

72.00

300.00

228.00

0.25

0.08

0.28

1.0

 

 

 

 

Incl.

 

72.00

178.78

106.78

0.31

0.09

0.37

1.2

 

 

 

 

and

 

72.00

129.00

57.00

0.40

0.10

0.53

1.3

 

 

 

 

and

 

72.00

84.00

12.00

0.81

0.16

1.15

2.0

 

 

 

 

Incl.

 

189.00

300.00

111.00

0.21

0.08

0.22

0.8

 

 

 

 

 

 

431.97

647.00

215.03

0.22

0.10

0.21

0.8

 

 

 

 

Incl.

 

522.00

534.00

12.00

0.47

0.10

0.64

1.6

 

 

 

 

and

 

561.00

644.55

83.55

0.24

0.12

0.20

0.9

PINE

JP22016

265

-65

609.00

 

 

13.23

155.56

142.33

0.26

0.08

0.30

1.1

 

 

 

 

Incl.

 

18.00

66.00

48.00

0.41

0.12

0.50

1.4

 

 

 

 

 

 

175.51

186.33

10.82

0.30

0.12

0.31

1.4

 

 

 

 

 

 

213.36

232.07

18.71

0.22

0.12

0.17

1.4

 

 

 

 

 

 

241.78

258.00

16.22

0.29

0.10

0.32

1.2

PINE

JP22017

90

-60

624.00

 

 

174.00

352.80

178.80

0.32

0.11

0.36

1.2

 

 

 

 

Incl.

 

248.03

352.80

104.77

0.37

0.13

0.43

1.1

 

 

 

 

and

 

272.72

336.00

63.28

0.44

0.14

0.52

1.2

 

 

 

 

and

 

272.72

291.00

18.28

0.56

0.12

0.76

1.5

 

 

 

 

Incl.

 

310.00

336.00

26.00

0.45

0.17

0.49

1.2

 

 

 

 

 

 

378.00

390.00

12.00

0.30

0.12

0.30

1.3

PINE

JP22018

265

-60

490.50

 

 

126.00

177.00

51.00

0.38

0.13

0.4

1.8

PINE

JP22034

90

-60

504.00

 

 

59.67

95.08

35.41

0.14

0.05

0.14

0.3

 

 

 

 

 

 

124.71

145.17

20.46

0.24

0.13

0.20

0.8

 

 

 

 

 

 

174.13

231.00

56.87

0.24

0.14

0.17

1.6

 

 

 

 

 

 

423.32

477.33

54.01

0.13

0.07

0.10

0.9

PINE

JP22040

270

-90

405.00

 

No significant intercepts

Canyon

JP22029

40

-60

234.00

 

No significant intercepts

 

 
-8-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Canyon

JP22030

55

-60

753.00

 

102.00

126.00

24.00

0.13

0.07

0.10

0.5

 

 

 

 

 

223.85

255.00

31.15

0.14

0.10

0.04

3.3

 

 

 

 

 

291.00

342.00

51.00

0.13

0.10

0.04

0.8

 

 

 

 

 

342.00

638.25

296.25

0.39

0.30

0.14

1.7

 

 

 

 

Incl.

 

345.21

456.00

110.79

0.48

0.38

0.16

2.5

JP22030

 

 

 

Incl.

 

351.00

447.00

96.00

0.51

0.39

0.18

2.6

 

 

 

 

 

360.00

399.00

39.00

0.56

0.42

0.20

2.7

 

 

 

 

Incl.

 

552.00

580.00

28.00

0.51

0.40

0.19

1.4

 

 

 

 

 

708.90

719.40

10.50

0.77

0.61

0.25

2.1

Canyon

JP22036

55

-60

588.00

 

24.47

219.00

194.53

0.20

0.14

0.09

2.3

 

 

 

 

Incl.

 

69.00

76.00

7.00

0.91

0.54

0.59

6.9

 

 

 

 

Incl.

 

162.30

177.00

14.70

0.33

0.22

0.18

2.1

 

 

 

 

 

210.00

219.00

9.00

0.27

0.17

0.15

1.8

 

 

 

 

 

407.00

464.00

57.00

0.17

0.12

0.08

0.8

Canyon

JP22038

55

-60

576.00

 

384.00

570.00

186.00

0.15

0.12

0.04

0.8

Canyon

JP22042

235

-70

661.30

 

299.40

564.00

264.60

0.15

0.11

0.06

0.8

 

 

 

 

Incl.

 

318.00

347.61

29.61

0.23

0.16

0.12

1.1

 

 

 

 

Incl.

 

453.00

498.00

45.00

0.20

0.15

0.07

0.9

Canyon

JP22043

50

-60

735.00

 

 

582.00

726.00

144.00

0.16

0.13

0.03

0.8

Twins

JP22019

50

-60

384.00

 

 

54.00

125.58

71.58

0.21

0.10

0.19

1.0

 

 

 

 

Incl.

 

99.00

125.58

26.58

0.29

0.12

0.30

1.2

 

 

 

 

 

 

215.00

276.00

61.00

0.19

0.11

0.14

1.2

Twins

JP22020

235

-60

270.00

 

 

12.00

216.00

204.00

0.11

0.03

0.14

0.4

 

 

 

 

Incl.

 

44.22

90.00

45.78

0.17

0.05

0.22

0.6

Twins

JP22021

55

-60

216.00

 

No significant intercepts

Twins

JP22023

235

-60

36.00

 

Abandoned in overburden

Twins

JP22025

50

-60

219.00

 

 

12.00

48.00

36.00

0.11

0.04

0.11

0.6

Twins

JP22026

55

-55

282.00

 

No significant intercepts

Twins

JP22031

55

-60

249.00

 

 

60.00

105.00

45.00

0.10

0.04

0.11

0.3

SWT

JP22022

265

-55

528.00

 

No significant intercepts

SWT

JP22024

225

-60

501.00

 

 

414.30

417.00

2.70

2.12

0.005

3.73

6.2

SWT

JP22027

70

-60

342.00

 

 

24.00

27.00

3.00

0.25

0.09

0.28

0.4

SWT

JP22028

70

-60

342.00

 

 

264.00

342.00

78.00

0.08

0.02

0.11

0.4

 

 

 

 

Incl.

 

328.71

342.00

13.29

0.14

0.03

0.20

0.5

South MEX

JP22041

54.16

59.82

323.00

 

 

101.00

173.00

72.00

0.10

0.02

0.10

3.4

 

 

 

 

Incl.

 

127.00

149.00

22.00

0.15

0.03

0.16

4.8

Wrich

JP22044

335

-70

393.00

 

 

59.00

167.00

108.00

0.20

0.03

0.23

6.4

 

 

 

 

Incl.

 

65.00

86.00

21.00

0.32

0.04

0.32

13.6

 

 

 

 

Incl.

 

119.00

137.00

18.00

0.28

0.03

0.44

1.7

 

 

 

 

Incl.

 

158.00

167.00

9.00

0.34

0.02

0.46

10.2

Finlay North

JP22032

30

-60

225.00

 

No significant intercepts

Finlay North

JP22033

30

-60

243.00

 

 

66.00

87.00

21.00

0.07

0.004

0.11

0.4

Finlay North

JP22035

30

-70

219.40

 

No significant intercepts

Finlay South

JP22037

55

-60

221.00

 

 

17.00

29.00

12.00

0.14

0.10

0.06

2.0

Finlay South

JP22039

235

-50

356.00

 

No significant intercepts

CT

JP22045

90

-60

204.00

 

No significant intercepts

 

 
-9-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

 

>0.30% CuEQ

 

0.15 – 0.30% CuEQ

 

 

 

Notes:

 

1.

Widths reported are drill widths, such that true thicknesses are unknown.

2.

All assay intervals represent length-weighted averages.

3.

Some figures may not sum exactly due to rounding.

4.

Copper equivalent (CuEQ) calculations use metal prices of: Cu US$4.00/lb., Au US$1800/oz. and Ag US$24/oz. and conceptual recoveries of: Cu 85%, Au 72% and 67% Ag. Conversion of metals to an equivalent copper grade based on these metal prices is relative to the copper price per unit mass factored by conceptual recoveries for those metals normalized to the conceptualized copper recovery. The metal equivalencies for each metal are added to the copper grade. The general formula for this is: CuEQ% = Cu% + ((Au g/t * (Au recovery / Cu recovery) * (Au $ per oz./ 31.1034768 / Cu $ per lb. * 22.04623)) + ((Ag g/t * (Ag recovery / Cu recovery) * (Ag $ per oz. / 31.1034768 / Cu $ per lb. * 22.04623))

 

Discovery At Canyon Deposit Target Highlights Potential for Clustered Deposits at JOY

Eight extensive porphyry Cu-Au deposit targets were explored in 2022 with 26 scout drill holes; four of the targets had not been previously drill tested. These deposit targets include the Canyon (5 km2), Twins (7 km2) and SWT (3 km2) which, along with PINE (6 km2), form the 15.5 km northeast trending PINE Trend; and the South Mex (>1.9 km2) open deposit target at the south end of the 6 km-long MEX Trend (Amarc releases January 23, 2023 and March 2, 2023). These trends are similar to the 4 km-long northeast trend of the Nugget, Kemess North, Kemess Underground, Kemess Offset and Kemess East porphyry Cu-Au deposits in the Kemess Mining District held by Centerra Gold Inc., and located adjacent to the south of the JOY tenure.

 

At Canyon, very limited initial scout drilling of the expansive (5 km2) and largely covered sulphide system by Amarc in 2021 (JP21006: 27 m of 0.18% CuEQ4 with 0.06% Cu, 0.21 g/t Au) (see Amarc news release March 7, 2022) and historical operators (MEX12-013: 49 m of 0.16% CuEQ with 0.05% Cu, 0.20 g/t Au, and PIN09-15: 3 m of 11 g/t Au), intersected promising Cu-Au and Au-only mineralization compatible with the fringes of a potentially important porphyry Cu-Au system. In 2022, further reconnaissance drilling at Canyon discovered a significant new zone of porphyry Cu-Au mineralization with hole JP22030 intersecting:

 

·

 96 m of 0.51% CuEQ4 (0.39% Cu, 0.18 g/t Au and 2.6 g/t Ag), within 296 m of 0.39% CuEQ (0.30% Cu, 0.14 g/t Au and 1.7 g/t Ag)

·

 5 m of 0.77% CuEQ (0.61% Cu, 0.25 g/t Au, 2.1 g/t Ag)

 

Four other scout drill holes intersected less robust Cu-Au mineralization disrupted by inter-mineral intrusions. The Canyon discovery remains open to expansion and requires substantial drilling, as does the host 5 km2 IP geophysical anomaly which indicates the presence of a large-scale sulphide system.

 

 
-10-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

The highly prospective Twins (7 km2) deposit target is located adjacent and to the southwest along the 15.5 km PINE Trend from Canyon. A single scout drill hole completed by Amarc in 2021 (JP21004), the first ever drilled into the large Twins target, intersected 63 m of 0.18% CuEQ4 with 0.09% Cu, 0.15 g/t Au, 0.5 g/t Ag, including 39 m of 0.22% CuEQ with 0.11% Cu, 0.19 g/t Au, 0.6 g/t Ag, successfully discovering porphyry-type Cu-Au mineralization (Amarc release March 7, 2022) within this large mineralized sulphide system. In 2022, very widely spaced follow-up reconnaissance drill holes, ranging in length from 216 m to 384 m, targeted magnetic high features within the extensive IP chargeability footprint and encountered widespread indications of porphyry Cu-Au mineralization.

 

Based on comparisons with the Canyon discovery and the PINE Deposit, intervals of porphyry Cu-Au mineralization at Twins, including 27 m of 0.29% CuEQ4 (0.12% Cu, 0.30 g/t Au, 1.2 g/t Ag) in JP22019 and 204 m of 0.11% CuEQ (0.04% Cu, 0.14 g/t Au, 0.4 g/t Ag) in JP22020, may represent the lateral or upper parts of a yet undiscovered porphyry Cu-Au center. The large footprint of this target, its veneer of glacial overburden cover, and Cu-Au intercepts in the widely spaced and relatively shallow drill holes highlight the significant exploration potential for the discovery of another porphyry Cu-Au deposit at Twins.

 

Systematic Exploration of Emerging Deposit Targets

 

In 2022 a similar strategy of initial drill testing with single to widely spaced shorter scout drill holes was employed at other overburden-covered targets, including South MEX, South Finlay, North Finlay and CT, with results indicating continued systematic exploration is warranted. At South MEX, a single scout drill hole, the first into this >1.9 km2 IP chargeability anomaly that remains open to expansion, intersected anomalous Au-Cu-Ag (72 m of 0.10% CuEQ4 (0.02% Cu, 0.10 g/t Au, 3.4 g/t Ag) in JP22041) in volcanics that straddle the prospective Triassic-Jurassic contact.  This geological environment is similar to that hosting the Kemess District porphyry Cu-Au deposits (Amarc releases January 23, 2023 and March 2, 2023).

 

Scout drilling at SWT returned local zones of anomalous Au-Cu compatible with proximity to a porphyry Cu-Au system (e.g. 78 m of 0.09% CuEQ4 (0.02% Cu, 0.11 g/t Au, 0.04 g/t Ag) in JP22028), as well as local vein-hosted Au-only mineralization (2.7 m of 3.7 g/t Au in JP22024). At the adjacent Wrich occurrence, Au-Ag-Cu mineralization (108 m of 0.20% CuEQ (0.03% Cu, 0.23 g/t Au, 6.4 g/t Ag) in JP22044) is associated with advanced argillic alteration zones and may represent a higher-level signature of a porphyry Cu-Au system.

 

JOY District Agreement with Freeport

 

On May 12, 2021, Amarc announced it entered into an agreement (the "Agreement") with Freeport pursuant to which Freeport may acquire, through a staged two-stage option up to a 70% ownership interest in the mineral claims comprising the JOY District, plus other rights and interests, over up to a 10 year period.

 

To earn an initial 60% interest, Freeport is required to fund $35 million of work expenditures over a 5-year term. During the first year of the earn-in, a $4 million work program is required in the JOY District. Annual optional earn-in expenditures can be accelerated by Freeport at its discretion. Amarc will be operator during the initial earn-in period. Once Freeport has acquired such 60% interest, Amarc and Freeport will proceed to explore and develop the JOY District through a jointly owned corporation with Freeport assuming project operatorship.

 

 
-11-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Upon Freeport earning such 60% interest, it can elect, in its sole discretion, to earn an additional 10% in the mineral claims comprising the JOY District, plus other rights and interests (for a total 70% interest) by sole funding a further $75 million within the following five years.

 

Once Freeport has finalized its earned ownership interest at either the 60% or 70% level, each party will be responsible for funding its own pro-rata share of project costs on a 60:40 or 70:30 basis.

  

On August 4, 2021, Amarc announced that Freeport had increased its first-year contribution to the Company’s ongoing exploration program at the JOY District from $4 million to $5.5 million. On November 15, 2021, Amarc announced that Freeport had further increased its first-year contribution to the Company’s ongoing exploration program at the JOY District by ~50% – from $4 million to $5.94 million, and on December 15, 2021.  During the year ended March 31, 2023, Amarc announced that Freeport continues to earn-in at JOY and advanced approximately CDN$14 million in calendar 2022 for its Year 2 contribution toward the JOY exploration program. Freeport continued to fund it’s earn-in through 2023 and will do so through 2024.

 

JOY District Royalties

 

The 100% Amarc owned JOY District comprises the JOY, PINE and Paula Properties, and also the STAKED Claims. The mineral claims comprising the STAKED Claims were staked and are owned 100% by the Company.

 

On November 21, 2017, Amarc acquired 100% interest in the 7,200 Ha JOY Property from United Minerals Services Ltd., a private vendor. The JOY property is subject to an underlying 3% NSR royalty held by an underlying owner, which is capped at $3.5 million.

 

On August 29, 2017, Amarc entered into option agreements with each of Gold Fields Toodoggone Exploration Corporation (“Gold Fields”) and Cascadero Copper Corporation ("Cascadero"), which at that time held the PINE Property in a 51%:49% joint venture, that enabled Amarc to purchase 100% of the property. On December 31, 2018, Amarc completed the purchase of Cascadero’s 49% interest in the PINE property (Amarc MD&A December 31, 2018). Further, on December 9, 2019, Amarc announced that it had reached an agreement with Gold Fields to amend the option agreement between the parties and purchased outright the remaining 51% of the PINE Property from Gold Fields (Amarc news release, December 9, 2019).

 

Gold Fields retains a 2.5% NPI royalty on mineral claims comprising about 96% of the PINE Property and a 1% NSR royalty on the balance of the claims. The NPI royalty can be reduced to 1.25% at any time through the payment to Gold Fields of $2.5 million in cash or shares. The NSR royalty can be reduced to 0.50% through the payment to Gold Fields of $2.5 million in cash or shares.

 

The PINE Property is subject to a 3% underlying NSR royalty payable from production to a former owner and capped at $5 million payable from production (Amarc November 21, 2017 news release).

 

In November 2019, Amarc entered into a purchase agreement with two prospectors to acquire 100% of a single mineral claim, called the Paula Property, located internal to the wider JOY District tenure (Amarc MD&A December 31, 2019). The claim is subject to a 1% NSR royalty payable from commercial production that is capped at $0.5 million.

 

 
-12-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

The DUKE Cu-Au District

 

Amarc’s DUKE District is located 80 km northeast of Smithers in the broader Babine Region, one of BC’s most prolific porphyry Cu-Au belts. The Babine Region, a 40 by 100 km north to northwesterly striking mineralized belt is host to Noranda Mines’ past producing Bell and Granisle Cu-Au mines that produced a total of 1.1 billion pounds of Cu, 634,000 ounces of Au and 3.5 million ounces of Ag2, and the advanced stage Morrison Cu-Au deposit that is also held by another company. Amarc’s DUKE porphyry Cu discovery is located 30 km north of the Bell Mine. Extensive infrastructure exists in the District, which primarily relates to the forestry industry but also dates back to mining activity.

  

The 722 km2 DUKE District includes both the DUKE porphyry Cu deposit target discovery (“DUKE”) and a series of high potential porphyry Cu-Au deposit targets generated form the Company’s district-scale targeting program.

 

Between early December 2022 and mid-March 2023 Amarc commenced delineation drilling of the DUKE Deposit and exploration drilling of the surrounding DUKE Target (Amarc releases January26, 2023, February 15, 2023 and June 15, 2023), and from mid-May completed extensive airborne and surface exploration across the DUKE porphyry Cu-Au district (Amarc release November 21, 2023). These comprehensive surveys defined the highest priority targets for 2024 drill testing, which include the Svea deposit target that shares many attributes with some of the premier deposits and occurrences within the Babine Cu-Au Region (Amarc release January 19, 2024). In January, Amarc initiated its 2024 extensive drill program: winter drilling is focused at the DUKE Deposit and surrounding 4.7 km2 DUKE Target (Amarc release February 8, 2024), and planning for summer drilling is underway.

 

The DUKE technical information up and including 2020 is summarized from the Company’s National Instrument  43-101 Technical Report (DUKE Technical Report) filed under Amarc’s profile at www.sedarplus.ca and on the Company’s website at www.amarcresources.com/projects/duke-project/technical-report.

 

Expanding the DUKE Porphyry Cu Deposit

 

The porphyry Cu system at DUKE Deposit had historically seen only limited drilling. Many of the 21 historical shallow and closely spaced core holes intersected and ended in significant Cu-Mo-Ag-Au mineralization (see Amarc’s Company’s National Instrument 43-101 Technical Report). In the main area of known mineralization, these holes extended to only 124 m vertical depth from surface.

 

This historical drilling was centered within a restricted part of a robust, 4.7 km historical IP chargeability anomaly, which is thought to have been offset by faulting. When reconstructed, this IP chargeability anomaly has a classic donut shape that was the target of Amarc’s eight core holes completed in 2017 through 2018 (see December 19, 2017 and June 12, 2018 news releases).

 

Seven of the eight core holes drilled over an area measuring approximately 400 m north-south by 600 m east-west successfully intersected porphyry Cu-style mineralization to a vertical depth of 360 m. This mineralization remains open to expansion. Notably, a single step-out hole (DK18004) completed by Amarc in 2018 more than 1 km to the north of the seven other Amarc holes, and within the displaced portion of the IP chargeability anomaly, intersected substantial lengths of moderate to low grade Cu and Mo mineralization, confirming a potential extensive lateral dimension to the DUKE porphyry Cu system.

 

 
-13-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Between early December 2022 and mid-March 202,3 Amarc completed 24 core drill holes (11,086 m) (Table 2 and Amarc release June 15, 2023). Two drill rigs focused on further delineating the DUKE Cu-Mo-Ag-Au Deposit and a third rig tested the shallow overburden covered 4.7 km2 IP anomaly surrounding the DUKE Deposit, which is indicative of an expansive mineralized system.

 

Highlights from the 2022-2023 drilling at the DUKE Deposit include:

 

·

 183 m of 0.43% CuEQ4 (0.31% Cu, 0.019% Mo, 0.07 g/t Au,1.5 g/t Ag) in hole DK22009

·

 217 m of 0.45% CuEQ (0.33% Cu, 0.018% Mo, 0.08 g/t Au, 1.5 g/t Ag) in hole DK22010

·

 30 m of 0.47% CuEQ (0.36 % Cu, 0.015% Mo, 0.06 g/t Au, 3.2 g/t Ag) in hole DK23012

·

 30 m of 0.43% CuEQ (0.31% Cu, 0.014% Mo, 0.09 g/t Au, 1.6 g/t Ag), and

  

33 m of 0.44% CuEQ (0.20% Cu, 0.053% Mo, 0.06 g/t Au, 1.3 g/t Ag) in hole DK23015

 

·

 82 m of 0.41% CuEQ (0.30% Cu, 0.017% Mo, 0.06 g/t Au, 1.1 g/t Ag) in hole DK23022

·

 36 m of 0.47% CuEQ (0.34% Cu, 0.024% Mo, 0.06 g/t Au, 1.5 g/t Ag) in hole DK23024

·

 33 m of 0.40% CuEQ (0.30% Cu, 0.017% Mo, 0.05 g/t Au, 1.5 g/t Ag) in hole DK23026

 

4 See Table 2, Note 4 - copper equivalent (CuEQ) calculations use metal prices of: Cu US$4.00/lb, Mo US$15.00/lb, Au US$1,800.00/oz, and Ag US$24.00/oz and conceptual recoveries of: Cu 85%, Mo 82%, Au 72% and 67% Ag.

 

Of the 24 holes drilled, 16 widely spaced drill holes (7,552 m) were completed to further delineate the DUKE Deposit. These holes have increased the size of the DUKE Deposit porphyry Cu–Mo-Ag-Au system, and, also, Amarc’s understanding of the controls on mineralization in the DUKE District. An exploration template was developed to effectively screen and advance the additional 16 priority exploration targets within the extensive DUKE District tenure. This rapid advance in understanding the controls on mineralization at the DUKE Deposit provides a higher probability of success in these regional target areas.

 

Drill holes at the DUKE Deposit were sited on a nominal 200 m grid as step-outs from previous Amarc drilling. These holes confirmed that the DUKE Deposit extends to depths of at least 600 m, and also expanded the deposit footprint laterally to over 650 m north-south by 800 m east-west. In addition, on-going detailed geological interpretation and modelling indicates strong potential for further expansion of the deposit laterally, and especially to the east. A notable characteristic of the porphyry Cu-Mo-Ag-Au mineralization in these widely spaced holes is the presence of zones of higher grade mineralization within broader envelopes of comparatively moderate grade.

 

The DUKE Deposit consists of a series of Babine porphyry intrusions which were emplaced into volcanic and sedimentary rocks. The resulting contact zones are characterized by elevated Cu–Mo grades, often over several tens of metres in width, in both the intrusions and the adjacent volcanic and sedimentary rocks. The extension of significant Cu–Mo mineralization from the intrusions into the enclosing volcanic and sedimentary rocks greatly expands the DUKE Deposit volume potential.

 

The ongoing 2024 drilling is designed to test the extent of the internal higher grade mineralization and eastern expansion potential of the DUKE Deposit as well as that of the 4.7 km2 surrounding Target.  

 

 
-14-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Table 2: DUKE DEPOSIT 2022-2023 DRILL PROGRAM ASSAY RESULTS

 

DUKE Deposit Drill Holes

 

Drill

Hole5

Azim

(°)

Dip

(°)

EOH

(m)

Incl.

From

(m)

To

(m)

Int.1,2,3

(m)

CuEQ4

(%)

Cu

(%)

Mo

(%)

Au

(g/t)

Ag

(g/t)

DK22009

0

-90

551

9.40

551.00

541.60

0.33

0.24

0.016

0.04

1.2

 

 

 

 

Incl.

9.40

247.62

238.22

0.39

0.29

0.016

0.06

1.4

 

 

 

 

and

65.00

247.62

182.62

0.43

0.31

0.019

0.07

1.5

 

 

 

 

and

122.00

247.62

125.62

0.52

0.38

0.024

0.08

1.8

 

 

 

 

and

128.00

161.00

33.00

0.59

0.42

0.028

0.10

1.8

 

 

 

 

and

176.00

245.00

69.00

0.57

0.42

0.023

0.09

2.1

 

 

 

 

Incl.

289.88

376.90

87.02

0.36

0.25

0.020

0.05

1.5

 

 

 

 

and

289.88

336.87

46.99

0.43

0.31

0.022

0.06

1.7

 

 

 

 

Incl.

406.12

551.00

144.88

0.31

0.22

0.018

0.03

1.1

 

 

 

 

and

412.00

488.00

76.00

0.38

0.28

0.018

0.04

1.4

 

 

 

 

and

412.00

434.00

22.00

0.42

0.31

0.022

0.04

1.5

 

 

 

 

and

459.54

488.00

28.46

0.41

0.30

0.018

0.05

1.5

DK22010

0

-90

566

8.63

566.00

557.37

0.36

0.25

0.018

0.06

1.4

 

 

 

 

Incl.

8.63

317.56

308.93

0.42

0.31

0.017

0.08

1.8

 

 

 

 

and

101.00

317.56

216.56

0.45

0.33

0.018

0.08

1.5

 

 

 

 

and

185.00

206.00

21.00

0.48

0.38

0.012

0.08

1.6

 

 

 

 

and

243.45

300.75

57.30

0.68

0.50

0.027

0.13

2.0

 

 

 

 

Incl.

338.00

368.00

30.00

0.49

0.33

0.030

0.08

1.3

DK23013

0

-90

576

 

255.00

261.00

6.00

0.30

0.24

0.008

0.04

0.9

 

 

 

 

 

273.00

294.00

21.00

0.23

0.18

0.006

0.03

0.9

 

 

 

 

 

517.85

528.00

10.15

0.22

0.17

0.006

0.04

0.9

DK23015

0

-50

546

 

7.70

75.00

67.30

0.35

0.25

0.012

0.07

1.5

 

 

 

 

Incl.

21.00

51.00

30.00

0.43

0.31

0.014

0.09

1.6

 

 

 

 

 

231.00

261.00

30.00

0.21

0.16

0.004

0.06

0.8

 

 

 

 

 

339.00

372.00

33.00

0.44

0.20

0.053

0.06

1.3

DK23017

248

-50

262.83

 

25.92

128.00

102.08

0.17

0.14

0.005

0.02

0.6

 

 

 

 

Incl.

25.92

55.70

29.78

0.23

0.18

0.006

0.04

0.7

 

 

 

 

and

34.00

49.00

15.00

0.28

0.21

0.008

0.07

0.7

DK23018

0

-90

519

 

4.89

117.00

112.11

0.16

0.13

0.004

0.03

0.6

 

 

 

 

Incl.

9.00

45.00

36.00

0.23

0.18

0.009

0.04

0.8

DK23019

0

-90

570

 

15.85

77.00

61.15

0.28

0.23

0.008

0.02

1.1

 

 

 

 

Incl.

15.85

24.00

8.15

0.49

0.41

0.010

0.04

2.1

 

 

 

 

Incl.

45.00

62.00

17.00

0.33

0.28

0.008

0.03

1.2

 

 

 

 

 

207.00

346.00

139.00

0.17

0.13

0.008

0.02

0.7

 

 

 

 

Incl.

251.00

267.00

16.00

0.25

0.21

0.004

0.02

1.5

 

 

 

 

 

381.00

570.00

189.00

0.20

0.14

0.013

0.02

0.6

 

 

 

 

Incl.

396.00

409.84

13.84

0.26

0.17

0.020

0.03

0.9

 

 

 

 

Incl.

453.00

491.00

38.00

0.22

0.15

0.016

0.02

0.8

 

 

 

 

Incl.

512.00

570.00

58.00

0.22

0.17

0.011

0.02

0.5

DK23020

0

-90

540

 

10.07

180.00

169.93

0.26

0.20

0.009

0.04

0.9

 

 

 

 

Incl.

13.16

45.00

31.84

0.29

0.22

0.009

0.04

1.0

 

 

 

 

Incl.

90.00

123.00

33.00

0.27

0.22

0.009

0.03

1.0

 

 

 

 

Incl.

135.00

165.00

30.00

0.38

0.30

0.013

0.05

1.0

 

 

 

 

 

258.00

450.00

192.00

0.19

0.13

0.008

0.04

0.7

 

 

 

 

Incl.

345.00

366.00

21.00

0.24

0.19

0.006

0.03

0.9

 

 

 

 

 

516.00

528.00

12.00

0.31

0.20

0.013

0.10

0.9

 

 
-15-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

DK23021

88

-45

615

 

160.00

375.00

215.00

0.21

0.16

0.007

0.03

1.2

 

 

 

 

Incl.

261.00

334.15

73.15

0.33

0.26

0.009

0.04

2.4

 

 

 

 

and

279.00

309.00

30.00

0.49

0.39

0.012

0.07

1.9

DK23022

0

-90

600.62

 

27.01

196.50

169.49

0.33

0.25

0.014

0.05

0.9

 

 

 

 

Incl.

50.00

165.00

115.00

0.38

0.28

0.017

0.06

1.0

 

 

 

 

and

62.00

144.50

82.50

0.41

0.30

0.017

0.06

1.1

 

 

 

 

 

231.50

439.87

208.37

0.20

0.15

0.010

0.02

0.9

 

 

 

 

Incl.

233.63

272.00

38.37

0.29

0.23

0.011

0.03

1.0

 

 

 

 

 

515.95

600.62

84.67

0.26

0.19

0.013

0.03

1.2

 

 

 

 

Incl.

518.20

544.00

25.80

0.34

0.26

0.012

0.04

1.6

DK23023

88

-45

385.15

 

15.40

123.09

107.69

0.19

0.15

0.005

0.03

0.8

 

 

 

 

 

21.00

42.00

21.00

0.24

0.19

0.008

0.04

0.7

 

 

 

 

 

102.00

117.00

15.00

0.33

0.28

0.003

0.05

2.2

DK23024

0

-90

188.18

 

10.20

56.00

45.80

0.32

0.24

0.012

0.04

1.1

 

 

 

 

Incl.

10.20

21.00

10.80

0.41

0.32

0.013

0.06

1.3

 

 

 

 

 

117.64

153.40

35.76

0.47

0.34

0.024

0.06

1.5

DK23025

0

-90

147

No significant intercepts

 

DK23026

0

-90

600

 

12.15

55.80

43.65

0.31

0.24

0.010

0.04

1.1

 

 

 

 

 

12.15

27.00

14.85

0.38

0.30

0.012

0.05

1.3

 

 

 

 

 

120.34

153.16

32.82

0.40

0.30

0.017

0.05

1.5

 

 

 

 

 

268.24

600.00

331.76

0.25

0.18

0.014

0.02

0.8

 

 

 

 

Incl.

268.24

288.27

20.03

0.41

0.30

0.022

0.04

1.3

 

 

 

 

Incl.

405.00

522.40

117.40

0.28

0.20

0.014

0.03

0.8

 

 

 

 

and

429.00

444.44

15.44

0.39

0.28

0.021

0.04

1.0

 

 

 

 

Incl.

543.00

567.00

24.00

0.37

0.30

0.010

0.04

1.2

DK23027

268

-45

324

 

29.00

71.95

42.95

0.27

0.20

0.012

0.04

1.0

DK23028

88

-75

561

 

103.65

323.74

220.09

0.23

0.15

0.017

0.03

0.9

 

 

 

 

Incl.

216.00

273.00

57.00

0.27

0.19

0.018

0.02

0.8

 

 

 

 

 

381.00

438.61

57.61

0.20

0.12

0.016

0.02

0.7

 

 

 

 

Incl.

419.14

431.79

12.65

0.29

0.20

0.017

0.03

1.2

471.54

561.00

89.46

0.16

0.11

0.011

0.02

0.6

 

Drills Holes in the Surrounding 4.7 km2 DUKE Deposit Target

 

Drill

Hole5

Azim.

(°)

Dip

(°)

EOH

(m)

Incl.

From

(m)

To

(m)

Int.1,2,3

(m)

CuEQ4

(%)

Cu

(%)

Mo

(%)

Au

(g/t)

Ag

(g/t)

DK23011

90

-60

524

No significant intercepts

 

 

 

 

 

 

DK23012

90

-50

416

 

192.00

297.00

105.00

0.26

0.16

0.008

0.10

1.4

 

 

 

 

Incl.

243.00

294.00

51.00

0.34

0.26

0.012

0.04

2.2

 

 

 

 

and

264.00

294.00

30.00

0.47

0.36

0.015

0.06

3.2

DK23014

270

-61

497

 

14.62

56.00

41.38

0.18

0.12

0.007

0.06

0.7

 

 

 

 

Incl.

17.00

29.00

12.00

0.24

0.14

0.006

0.13

0.9

 

 

 

 

 

158.00

185.00

27.00

0.16

0.11

0.005

0.05

0.8

DK23016

90

-45

500

No significant intercepts

 

 

 

 

 

DK23029

90

-45

350

No significant intercepts

 

 

 

 

 

DK23030

268

-45

462

No significant intercepts

 

 

 

 

 

DK23031

268

-45

386

No significant intercepts

 

 

 

 

 

DK23032

268

-45

399

No significant intercepts

 

 

 

 

 

 

 
-16-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

 

>0.30% CuEQ

 

0.15 – 0.30% CuEQ

 

 

Notes:

 

1.

Widths reported are drill widths, such that true thicknesses are unknown.

2.

All assay intervals represent length-weighted averages.

3.

Some figures may not sum exactly due to rounding.

4.

Copper equivalent (CuEQ) calculations use metal process prices of: Cu US$4.00/lb, Au US$1800/oz., Ag US$24/oz. and Mo US$15/lb and conceptual recoveries of: Cu 85%, Mo 82%, Au 72% and 67% Ag. Conversion of metals to an equivalent copper grade based on these metal prices is relative to the copper price per unit mass factored by conceptual recoveries for those metals normalized to the conceptualized copper recovery. The metal equivalencies for each metal are added to the copper grade. The general formula for this is: CuEQ% = Cu% + ((Au g/t * (Au recovery / Cu recovery) * (Au $ per oz./31.1034768 / Cu $ per lb. * 22.04623)) + ((Ag g/t * (Ag recovery / Cu recovery) * (Ag $ per oz./ 31.1034768 / Cu $ per lb. * 2204623)) + ((Mo% * (Mo recovery / Cu recovery) * (Mo $ per lb.) / Cu $ per lb.)).

5.

The collar locations in UTM NAD83, Zone 9N coordinates for drill holes are provided in Amarc release June 15, 2023.

 

New Duke District Porphyry Cu-Au Targets 

 

Appreciating the Cu-Au prospectivity of the Babine District and its relatively unexplored nature due to the widespread glacial cover (4 m to 18 m thick in the Amarc DUKE discovery drill holes), Amarc completed a comprehensive compilation of government and historical data over the entire DUKE District. This integrated study provided a new interpretation of the geological, geochemical and geophysical characteristics of the Babine District, identifying 16 previously unrecognized high potential porphyry Cu-Au deposit targets. These target areas were defined, for example, by anomalous Cu-Au-Mo-Ag (and other porphyry indicator elements) till geochemistry, till samples with identified grains of bornite, chalcopyrite and/or favorable biotite feldspar porphyry, compelling up-ice magnetic geophysics features, and indications of structural control along faults emanating from large deep-seated regional structures that likely controlled the emplacement of the prospective intrusions, along with numerous other scientific vectors.

 

In May 2023, Amarc remobilized its exploration team completing extensive airborne and ground exploration surveys to assess the 16 prioritized porphyry Cu-Au targets across the DUKE District to define targets for 2024 drill testing (Amarc releases May 17, 2023 and November 21, 2023). Exploration activities included:

 

·

 5,759 line-km of high resolution airborne magnetics

·

 678 km2 of LiDAR

·

 68 line-km of ground magnetics

·

 122 line-km of IP geophysics

·

 6,079 grid soil sample geochemistry analyses

·

 315 rock sample geochemistry analyses

·

 Framework and localized detailed geological mapping

 

 
-17-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

The results of this successful program have defined six deposit targets for drill testing including the Svea Target and also a pipeline of additional porphyry copper-gold targets for further assessment prior to drill testing (Amarc release January 19, 2024). These targets are in addition to the DUKE Deposit and surrounding Target currently being drilled.

 

The Svea deposit target shares many attributes with some of the premier deposits and occurrences within the Babine Cu-Au Region including:

 

 

·

An association with regional scale faults and mineralized corridors;

 

·

An association with volumetrically significant, Eocene-age biotite-feldspar porphyry (“BFP”) intrusions as detailed in geological survey work: the 1,500 m strike length of the BFP intrusions at Svea, is notably larger than historical interpretations, and is comparable with known BFP-related deposits in this district;

 

·

 An association with widespread hydrothermal fluid flow paths as defined by sheeted and stockwork vein sets, vein density and sulphide development;

 

·

 An association with a large 7 km2 IP chargeability anomaly underlying the interpreted mineralized system (Figure 2);

 

·

 An association with widespread and strong, Cu-Au-Mo-in-soil geochemical anomalies: extensive Cu-in-soil geochemical anomalies exceeding 100 ppm with internal areas of ≥250 ppm over 1,000 m by 200 m and 500 m by 300 m (Figure 2); and

 

·

An association with both Cu and Au in historical drilling* (Figure 2): limited drilling of 12 short, median 61 m long, drill holes completed in 1969 and 1975 by Texas Gulf Sulphur Co. intersected mineralization, suggesting the BFP’s at Svea can be associated with significant Cu and Au contents. Historical Cu assays are available for only nine of these drill holes, and these indicate varying degrees of Cu mineralization which is interpreted to be due, at least in part, to the presence of inter- and post-mineralization intrusions in which many holes terminated early. An example is historical drill hole DDH 69-3, which returned 0.36% Cu and 0.18 g/t Au over 23.7 m within 0.27% Cu over the total drilled length of 57 m terminating in a post mineral intrusion. Nearby hole DDH 69-4 intersected 0.37% Cu and 0.18 g/t Au over 30.5 m.

 

This combination of geological data suggests excellent potential for Cu-Au mineralization within the Svea mineralized system. It is Amarc’s intent to drill test this emerging target during the summer 2024 drill season.

 

*Copper assays for nine 1969 Texas Gulf drilling are from copies of original drill logs, accessed at https://propertyfile.gov.bc.ca/showDocument.aspx?docno=830869 (BC Ministry of Energy, Mines and Petroleum Resources (“BC MEMPR”) Property File Document 830869), and for gold in from Carter, 1992, Geological and Geochemical Report, Sampling of Diamond Drill Cores and Soil Sampling, on the Trail Mineral Claim, 31 pages, BC MEMPR Assessment Report 22719. Assay summaries are available for some of these historical drill hole, but much of the assay data, along with drill logs, is not available. These results are historical in nature and at the time of this release have not been verified by Amarc Resources or its Qualified Person, as the drill core, and original sample material are not available, however, the Company intends to verify this information through drilling during its summer 2024 campaign.

 

DUKE District Agreement with Boliden

 

On November 22, 2022, Amarc announced it had entered into an agreement (the “Agreement”) with Boliden Mineral Canada Ltd. (“Boliden”), a wholly-owned subsidiary of the Boliden Group.

 

 
-18-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Under the terms of the Agreement Boliden has a two-staged option to earn up to a 70% interest in the DUKE District.

 

To earn an initial 60% interest Boliden must fund CDN$30 million of exploration and development expenditures within four years of the effective date of the Agreement, of which CDN$5 million is a committed amount to be spent in 2022 and early 2023. Amarc will be the operator during this initial earn-in stage.

 

Upon earning a 60% interest, Boliden can elect to earn an additional 10% interest in the Duke District, for an aggregate 70% interest, by funding an additional CDN$60 million of exploration and development expenditures at a minimum rate of CDN$10 million per year over the ensuing six years. Once Boliden has earned a 60% interest it will also have the right to become the operator.

  

Upon Boliden finalizing its earned ownership interest, Amarc and Boliden will form either a 60:40 or 70:30 unincorporated joint venture to further advance the Duke District. At that stage each party will be responsible for funding its own pro-rata share of project costs, or be subject to customary equity dilution.

 

Boliden invested $10 million through to December 31, 2023 and will invest an additional $10 million through to the end of 2024 (see Amarc release December 13, 2023).

 

DUKE District Capped Royalty

 

Amarc holds 100% interest in the 722 km2 DUKE District which is largely free of any underlying royalty.

 

On September 5, 2023, Amarc announced that it may acquire 100% interest in a group of mineral claims covering some 2.34 km2 subject to a 2% Net Smelter Returns royalty retained by the underlying owner that is capped at $10 million, by issuing 200,000 Amarc shares and making annual cash payments of $5,000 to the Optionor plus funding an annual scholarship for Indigenous students for a period of 10 years in the amount of $20,000 per year (total of 200,000 shares and $250,000 cash).

 

The IKE Cu-Au District

 

Amarc’s 100% owned IKE District is located 35 km northwest of the town of Gold Bridge in southwestern BC and near the heartland of the provinces producing porphyry Cu mines. It is proximal to industrial infrastructure including power, and also highways and rail that connect the District to Vancouver and its port facilities.

 

Hydrothermal alteration and mineralization, which is prospective for the discovery of porphyry Cu±Au±Mo±Ag and related deposit types occurs throughout the expansive IKE District. The District occupies a highly fertile block of crust where magmatic‐hydrothermal‐structural characteristics are favorable for the formation of intrusion-related Cu±Au±Mo±Ag deposits with good grade (see below). These characteristics are common to most porphyry districts around the world that host major, and commonly multiple, Cu±Au±Mo±Ag deposits.

 

The greater IKE District includes the IKE porphyry Cu-Mo-Ag deposit discovery, the high potential Greater Empress area that hosts the Empress Cu-Au-Ag deposit and significant porphyry Cu-Au-Mo-Ag and Cu-Au-Ag replacement deposit targets, and also a number of promising porphyry Cu and Au-Ag epithermal targets. The District has the potential to develop into an important mining camp.

 

 
-19-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

  

The IKE technical information in this section is summarized from the Company’s National Instrument 43-101 Technical Report (“IKE Technical Report”) filed under Amarc’s profile at www.sedarplus.ca and on the Company’s website at www.amarcresources.com/projects/ike-project/technical-report.

 

IKE Porphyry Cu-Mo-Ag Deposit

 

The potential of the IKE Deposit was recognized by Amarc during a review of porphyry occurrences located in underexplored mineral belts in BC. Limited historical drilling indicated the presence of a mineral system with characteristics favorable for an economically viable porphyry Cu-Mo-Ag deposit, underlying a significant area of gossanous material. Three historical drill holes, located over approximately 220 m, had intersected long continuous intercepts of chalcopyrite and molybdenite mineralization with encouraging grades, for example: Hole 11-1 returned 186 m of 0.41% CuEQ4 (see Table 3 for note 4) at 0.31% Cu, 0.022% Mo, 1.9 g/t Ag and 0.01 g/t Au, including 58 m of 0.52% CuEQ at 0.39% Cu, 0.031% Mo, 1.9 g/t Ag and  0.02 g/t Au; and Hole 11-2: 120 m of 0.41% CuEQ at 0.31% Cu, 0.020% Mo, 3.3 g/t Ag and 0.01 g/t Au including 32 m of 0.58% CuEQ at 0.42 % Cu, 0.028% Mo, 6.3 g/t Ag and 0.02 g/t Au.

  

There was no follow up exploration until Amarc initiated exploration. Largely co-incident magnetic, IP chargeability geophysics and geochemical talus fines anomalies, together with geological alteration mapping have defined an extensive 9 km2 hydrothermal system, into which Amarc has completed approximately 15,455 m of core drilling in 26 widely spaced holes. This drilling has confirmed the presence of a substantial body of porphyry Cu-Mo-Ag mineralization with encouraging grades, over an area 1,200 m east-west by 1,000 m north- south, and over a vertical extent of 875 m depth, that remains open to expansion. Table 3 provides selected drill intercepts for the IKE Deposit.

 

 
-20-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

  

Table 3: IKE DEPOSIT

Selected Drill Intervals from Amarc’s Drilling

 

Drill Hole

From (m)

To (m)

Int. (m)1,2,3

Cu (%)

Au (g/t)

Ag (g/t)

Mo (%)

CuEQ(%)4,5

IK14005

269.4

325.4

56.0

0.31

-

1.6

0.064

0.55

 

339.1

426.2

87.1

0.36

-

0.7

0.054

0.56

Incl.

347.7

378.6

30.9

0.47

-

1.2

0.052

0.67

 

437.6

554.6

117.0

0.27

-

0.3

0.021

0.35

 

602.9

616.1

13.2

0.29

-

0.6

0.009

0.32

IK15010

204.0

268.0

64.0

0.30

-

2.9

0.015

0.38

 

293.0

421.0

128.0

0.33

-

3.1

0.022

0.43

Incl.

298.5

330.0

31.5

0.43

-

4.3

0.032

0.58

 

444.0

506.0

62.0

0.24

-

2.3

0.020

0.32

IK15013

48.0

60.0

12.0

0.23

-

1.7

0.017

0.31

 

75.0

99.0

24.0

0.24

-

1.9

0.044

0.41

 

129.0

307.7

178.7

0.32

-

2.2

0.025

0.42

 

339.5

366.5

27.0

0.18

-

1.2

0.030

0.30

 

372.5

693.3

320.8

0.32

-

2.3

0.038

0.47

Incl.

527.4

651.5

124.1

0.43

-

3.3

0.063

0.68

IK16020

111.0

156.0

45.0

0.25

-

1.7

0.015

0.31

 

314.5

381.9

67.4

0.35

-

2.8

0.023

0.45

Incl.

366.0

381.9

15.9

0.45

-

3.5

0.044

0.64

 

395.8

456.0

60.2

0.53

-

3.7

0.045

0.72

 

528.0

543.0

15.0

0.16

-

1.3

0.035

0.30

 

549.0

582.0

33.0

0.23

-

1.6

0.110

0.64

IK18025

257.0

351.7

94.7

0.37

0.020

2.5

0.020

0.47

Incl.

308.0

345.4

37.4

0.48

0.025

3.4

0.030

0.62

 

359.0

437.0

78.0

0.44

0.019

3.0

0.037

0.61

 

461.0

482.0

21.0

0.14

0.005

1.0

0.054

0.35

 

 

CuEQ%

 

>=0.30 & <0.50

 

 

>=0.50

 

Notes:

 

1.

Widths reported are drill widths, such that the thicknesses are unknown.

2.

All assay intervals represent length-weighted averages.

3.

Some figures may not sum exactly due to rounding.

4.

Copper equivalent (CuEQ) calculations use metal prices of: Cu US$3.00/lb, Mo US$12.00/lb, Ag US$18.00/oz and Au US$1,400.00/oz and conceptual recoveries of: Cu 90%, Au 72%, 67% Ag and 82% Mo. Conversion of metals to an equivalent Cu grade based on these metal prices is relative to the Cu price per unit mass factored by predicted recoveries for those metals normalized to the copper recovery. The metal equivalencies for each metal are added to the Cu grade. The general formula for this is: CuEQ % = Cu% + (Au g/t * (Au recovery / Cu recovery) * (Au $ per oz/ 31.1034768) / (Cu $ per lb* 22.04623)) + (Ag g/t * (Ag recovery / Cu recovery) * (Ag $ per oz/ 31.1034768) / (Cu $ per lb* 22.04623)) + (Mo % * (Mo recovery / Cu recovery) * (Mo $ per lb / Cu $ per lb)).

5.

The estimated metallurgical recoveries are conceptual in nature. There is no guarantee that the metallurgical testing required to determine metal recoveries will be done or, if done, the metallurgical recoveries could be at the level of the conceptual recoveries used to determine the CuEQ.

6.

Details of analysis, QA/QC and data verification for the DUKE Deposit drilling are provided in the 2020 DUKE National Instrument 43-101 Technical Report, which is posted on the Amarc website and the Company’s profile on SEDAR.

7.

Results of these historical Ducanex JV drill holes are from the 1991 Corona resampling and analyses by Acme.

(-)

Means not assayed for.

†

Details of analysis, QA/QC and data verification for the IKE Deposit drilling is provided in the 2020 IKE National Instrument 43-101 Technical Report, which is posted on the Amarc website and the Company’s profile on SEDAR at

www.sedarplus.ca

 

 
-21-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Like many major porphyry deposits, the IKE Deposit formed in a very active, multi-stage hydrothermal system that was extensive and robust. Geological mapping and logging of diamond drill core at IKE indicate the deposit is hosted entirely by multi-phase intrusive rocks. Its overall geological setting is similar to that of many important porphyry belts along the Cordillera in North and South America.

 

Core observations and initial petrographic studies at IKE indicate that the chalcopyrite and molybdenite mineralization occurs as fine to relatively coarse, mostly discrete grains, mainly as disseminations and less commonly in fractures and veins. Multi-element analyses have returned consistently and unusually low concentrations of metallurgically or environmentally deleterious elements. These characteristics, and the generally low concentrations of pyrite at IKE, suggest excellent potential to produce clean, good-grade Cu and Mo concentrates by standard flotation processing.

 

The current focus within the IKE District is at Empress and Empress East and subject to future funding, the Company is planning an expanded phased drill program at the IKE deposit with the goal of establishing a mineral resource, which will provide the basis for initial future economic studies.  

The Company has the required permit in-hand for the proposed drill programs.

 

Empress Deposit and Greater Empress Area Au-Rich Porphyry Cu and Replacement-Style Deposit Potential

 

Having recognized the potential of the IKE Deposit, Amarc consolidated the IKE District tenure. This included an important 35 km2 sub-area of the District located 6 km north of the IKE Deposit, that straddles the Coastal Plutonic Complex (“CPC”) contact for approximately 15 km. This area known as the Greater Empress area is centred on the higher grade Empress Cu-Au-Ag Deposit. The Greater Empress area has seen exploration completed by several operators since the 1920’s. Recent compilation and integration of useful historical information from geochemical and geophysical surveys and also drilling, permitted a rapid advancement in the understanding of the potential both to expand the Empress Deposit, and throughout the area with the recognition of significant porphyry Cu±Au±Mo-Ag and Cu-Au-Ag replacement deposit targets. Potential also exits for auriferous, polymetallic/mesothermal-epithermal deposits. The Company has the required permits in-hand for the proposed drill programs and IP geophysical surveys.

  

Empress Cu-Au-Ag Replacement Deposit

 

Historical drilling at Empress has indicated a significant body of good grade Cu-Au mineralization, which remains open to expansion with a modern core drilling program. Table 4 provides selected drill historical intercepts for the Empress Deposit. Mineralization at Empress is considered to have formed by the replacement of previously altered volcanics by a quartz-magnetite-sulphide assemblage, with higher Cu-Au-Ag grades commonly occurring within 100 m in vertical distance above the CPC’s contact, within the overlying volcanics. An initial examination of historical drill core by the Amarc team recognized the nearby, Granite porphyry Cu-Au-Ag-Mo deposit target, which is shallowly concealed by overburden.  The Granite porphyry deposit target is considered a probable source of the Empress Deposit replacement fluids. Historical core drill intercepts at Granite include Hole 91-49 which returned 92 m of 0.38% CuEQ4 (see Table 3 for note 4) @ 0.22% Cu, 0.23 g/t Au, 0.008% Mo and 0.4 g/t Ag. This target has not been delineated and mineralization remains open to expansion.

 

In 2024, Amarc intends to undertake a well-planned core drilling program at the Empress and Empress East Deposits from the known mineralization that remains open.

 

 
-22-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Table 4: EMPRESS DEPOSIT

Selected Drill Intervals from Historical Drilling

 

Drill Hole

From (m)

To (m)

Int. (m)1,2,3

Cu (%)

Au (g/t)

Ag (g/t)

Mo (%)

CuEQ (%)4,5

76-2

51.2

114.9

63.7

0.37

0.492

0.1

-

0.64

Incl.

60.4

72.4

12.0

0.51

0.442

-

-

0.76

Incl.

103.0

114.9

11.9

0.75

0.721

0.4

-

1.15

 

139.6

185.3

45.7

0.42

0.350

0.6

-

0.61

Incl.

139.6

157.9

18.3

0.39

0.941

1.1

-

0.91

Incl.

173.1

185.3

12.2

0.73

0.010

-

-

0.74

 

209.4

215.8

6.4

0.74

0.758

-

-

1.15

76-3

5.2

17.7

12.5

0.23

0.162

1.6

-

0.33

 

26.8

102.9

76.1

0.92

1.418

4.7

-

1.72

Incl.

26.8

37.6

10.8

0.49

4.244

2.3

-

2.81

Incl.

42.7

74.4

31.7

1.11

1.388

4.5

-

1.89

88-2

7.3

50.3

43.0

0.36

0.326

1.3

0.005

0.57

Incl.

13.4

29.9

16.5

0.62

0.579

2.3

0.002

0.95

88-7

17.7

69.5

51.8

0.47

0.457

2.4

0.002

0.74

Incl.

48.4

64.6

16.2

0.98

0.741

5.7

0.001

1.43

89-2

21.6

123.7

102.1

0.36

0.361

2.7

0.001

0.58

Incl.

26.5

37.0

10.5

0.31

0.754

3.2

0.003

0.75

Incl.

60.6

78.9

18.3

0.72

0.573

3.8

0.001

1.06

Incl.

99.1

118.0

18.9

0.49

0.470

4.2

0.001

0.78

89-8

9.1

115.5

106.4

0.35

0.359

1.5

0.003

0.56

Incl.

78.0

99.6

21.6

0.69

0.913

2.8

0.003

1.21

90-17

107.6

113.4

5.8

0.55

0.446

1.6

0.010

0.84

 

143.9

200.3

56.4

1.38

1.666

4.1

0.009

2.35

90-18

22.6

29.3

6.7

0.15

0.300

0.7

0.008

0.35

 

35.0

40.5

5.5

0.15

0.523

0.3

0.006

0.46

 

47.9

74.4

26.5

0.47

0.683

3.2

0.010

0.90

 

79.9

92.7

12.8

0.15

0.254

0.4

0.003

0.31

 

107.0

161.9

54.9

0.78

0.746

1.0

0.004

1.20

90-21

10.4

19.5

9.1

0.31

0.336

0.5

0.011

0.53

 

140.5

192.9

52.4

1.10

1.209

2.5

0.004

1.79

Incl.

153.3

175.3

22.0

1.58

1.671

2.6

0.006

2.52

Incl.

182.6

191.1

8.5

1.92

2.735

7.8

0.006

3.48

 

198.4

218.8

20.4

0.30

0.542

1.3

0.002

0.61

90-22

143.9

190.2

46.3

1.15

1.415

4.2

0.009

1.98

90-29

94.2

110.6

16.4

0.43

0.171

1.3

0.003

0.55

 

141.7

214.6

72.9

0.37

0.433

0.6

0.003

0.62

Incl.

178.3

194.8

16.5

0.86

1.069

1.5

0.003

1.46

 

 

CuEQ%

 

>=0.30 & <0.50

 

 

>=0.50

 

For notes refer to Table 3.

 

 
-23-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

  

Greater Empress Area Cu±Au±Mo-Ag Porphyry and Replacement Targets:  In addition to the Empress deposit, the 35 km2 Greater Empress area includes seven identified compelling porphyry and replacement-style Cu-Au±Mo±Ag deposit and exploration targets. The deposit targets include, Empress East, Empress Gap, Granite (as discussed above) and Buzzer, and the earlier-stage exploration targets include Empress West.  Each are discussed below with selected historical drill results provided in Tables 5 and 6.  These targets are either: not fully drill delineated or have been tested only by shallow, widely-spaced historical reconnaissance percussion drilling: and can with focused exploration be brought to a drill ready status.

 

Empress East Cu-Au-Ag Replacement Deposit Target: Located 1 km east of the Empress Deposit, limited historical core holes drilled at the Empress East deposit target intercepted mineralization similar to that at the Empress deposit in both style and grade. This drilling together with moderate to locally strong IP chargeability responses, magnetic geophysical features, and results from historical Cu and Au soil geochemistry where (>250 ppm Cu and ≥50 ppb Au values closely reflect the first three historical drill samples results at the base of overburden, see IKE Technical Report), indicate there is significant potential with further core drilling to enlarge this body of mineralization. Notably there is a complete absence of drill holes in the southern part of this target, which is at a position that is analogous to shallower, higher grade Cu-Au-Ag replacement-style mineralization at the Empress deposit to the west.

  

Table 5: EMPRESS EAST DEPOSIT TARGET

 Selected Drill Intervals from Historical Drill

 

Drill Hole

From (m)

To (m)

Int. (m)1,2,3

Cu(%)

Au (g/t)

Ag (g/t)

Mo (%)

CuEQ (%)4,5

91-39

9.8

37.8

28.0

0.34

0.543

1.2

0.002

0.66

 

107.6

147.5

39.9

0.40

0.332

0.8

0.004

0.60

Incl.

141.4

147.5

6.1

1.23

0.928

2.2

0.009

1.78

91-54

73.1

85.0

11.9

0.31

0.221

0.7

0.001

0.44

 

108.2

158.2

50.0

0.46

0.304

1.0

0.002

0.64

 

 

CuEQ%

 

>=0.30 & <0.50

 

 

>=0.50

 

For notes refer to Table 3.

 

Empress Gap Cu-Au-Ag Replacement Deposit Target: Results from limited historical drilling, comprising 11 shallow percussion drill holes and three deeper core holes in the >1 km long Empress Gap zone located between the Empress Deposit and Empress East, suggest a clear opportunity to discover additional Cu-Au-Ag mineralization in proximity to the volcanic-CPC contact. Many of the short percussion holes returned anomalous Cu‐Mo (Au and Ag were not analyzed for), potentially indicative of higher-grade underlying mineralization as at the Empress Deposit. Of the deeper core holes, Cu‐Au mineralization associated with alteration similar to that at Empress is also reported, however only two of these holes reached the volcanic-CPC contact.

 

 
-24-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Empress Gap is a significantly underexplored target and drill testing of areas close to the CPC-volcanic contact is required.

 

Buzzer Cu-Au-Ag±Mo Porphyry Deposit Target: The Buzzer deposit target is located in the eastern side of the Greater Empress area, inboard of the CPC. Historical drilling at Buzzer has intercepted high grade Cu-Au-Ag-Mo porphyry mineralization hosted in biotite altered intrusions (Table 6). Whether these mineralized intrusions, are part of a small high-level cupola or a large mineralized intrusive mineralized body below, as indicated by magnetic surveys, cannot be determined from the limited drilling.

 

The Granite and Buzzer porphyry systems demonstrate that significant porphyry-style mineralization is present in the Greater Empress area, and that further exploration surveys and drilling have the potential to make new porphyry discoveries, both inboard and outboard from the CPC contact.

 

Table 6: BUZZER DEPOSIT TARGET

Selected Drill Intervals from Historical Drilling

 

Drill Hole

From (m)

To (m)

Int. (m)1,2,3

Cu (%)

Au (g/t)4

Ag (g/t)

Mo (%)

CuEQ (%)4,5

DDH-3†

21.3

120.4

99.1

0.43

-

-

0.042

0.58

DDH-4†

14.6

113.4

98.8

0.37

-

-

0.037

0.50

X-1

0.0

5.9

5.9

0.15

0.237

5.8

0.013

0.36

 

9.5

42.5

33.0

0.26

0.175

3.4

0.042

0.53

Incl.

24.7

40.8

16.1

0.40

0.268

5.0

0.064

0.81

X-3

0.0

44.2

44.2

0.67

0.496

5.3

0.046

1.14

Incl.

10.7

38.1

27.4

0.86

0.724

6.6

0.059

1.51

GC11-74

11.4

52.2

40.8

0.28

0.210

1.8

0.012

0.44

Incl.

15.0

27.0

12.0

0.41

0.281

2.6

0.021

0.66

  

 

CuEQ%

 

>=0.30 & <0.50

 

 

>=0.50

 

For notes refer to Table 3.

†        Assay interval from historically reported composite. Individual assay results are unknown.

 

Empress West Cu-Au-Ag Exploration Target: This large target, which extends more than 2 km to the west of the Empress deposit along the favorable CPC-volcanic contact, has only been tested by widely-spaced and shallow percussion holes and a few core. It exhibits the same geological setting as the Empress Deposit, and the potential to discover additional Cu-Au-Ag mineralization is indicated by the results of the historical drilling when combined with magnetic and IP survey data, and known Cu-Au-Mo anomalies in soils. Modern IP and drilling are required to test a series of defined targets.

 

 
-25-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

 

IKE District Porphyry and Epithermal Targets: The IKE District hosts several known centres of porphyry Cu mineralization (Rowbottom, Mad Major, OMG) and Au-Ag epithermal mineralization (Battlement, Mewtwo) that exist outside of, but in proximity to and between, the IKE Deposit and Greater Empress areas. Limited exploration by historical operators and/or Amarc indicates that further survey work followed by drilling is warranted at these targets.

  

Rowbottom Cu-Mo-Au Porphyry Deposit Target: At Rowbottom, porphyry-style mineralization and alteration is intermittently exposed along 550 m of Rowbottom creek, and spatially associated with an extensive 1.3 km by 1.0 km IP chargeability anomaly that remains open for further surveying. Limited historical shallow percussion drilling returned good Cu and Mo grades (Au and Ag were not analysed for), and a single core hole completed by Amarc confirmed the presence of Au and Ag.

Historical drill intercepts include for example: Hole S-64: 49 m of 0.51% CuEQ4 (see Table 3 for note 4) 0.49% Cu and 0.007% Mo and Hole S-24: 43 m of 0.40% CuEQ at 0.28% Cu and 0.032% Mo.

 

The Amarc core hole intersected significant intervals of porphyry Cu-Mo mineralization hosting elevated Ag and Au values, which are cut by a number of post mineral dykes and returned, for example: RB17001: 66 m of 0.38% CuEQ4 at 0.29% Cu, 0.006% Mo, 0.08 g/t Au and 4.1 g/t Ag and 21 m of 0.43% CuEQ at 0.38% Cu, 0.007% Mo and 4.3 g/t Ag.

 

An historical soils grid along with both the historical and Amarc IP chargeability anomalies suggest that a larger system could be present, warranting further drilling both laterally and to depth in order to determine the geometry and grade distribution of the Rowbottom deposit target.

 

Mad Major Cu-Mo Porphyry Target: The Mad Major-OMG target area extends over approximately 23 km2 area of highly anomalous stream sediment geochemistry and gossanous ridges (see IKE Technical Report). Amarc’s exploration, and that of historical operators, has defined several large IP chargeability and magnetic geophysical, talus fines and soils geochemical and geological alteration mapping anomalies that remain to be adequately drill tested. Amarc has completed only eight very wide-spaced core holes into the target, and the source of the IP and geochemical anomalies is yet to be determined. Additional survey work and drilling are warranted.

  

Battlement and Mewtwo Au-Ag Epithermal Targets: Although not the focus of Amarc’s exploration, epithermal potential exits on the IKE District. For example, at both Battlement and Mewtwo reconnaissance stage exploration suggests a geological environment that is permissive for either, or both, a porphyry or epithermal-type deposits. Further exploration is warranted at both targets.

 

In summary, the IKE Deposit, Empress Deposit, Greater Empress area and IKE District target areas as described warrant substantial exploration programs. The Company has the permits in-hand for the potential work programs.

 

IKE District Capped Royalties

 

Amarc has a 100% interest in the IKE, Granite, Juno and Galore Properties, which make up the IKE District. The mineral claims comprising the Juno Property were staked and are owned 100% by the Company.

 

In July 2014, Amarc acquired a 100% interest in the IKE Property from Oxford Resources Inc. (“Oxford”, formerly Highpoint Exploration Inc.). At that time Oxford’s ownership interest was converted to a 1% Net Smelter Returns (“NSR”) royalty, which can be purchased at any time for $2 million (payable in cash or common shares of Amarc at the company’s sole election).

 

 
-26-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

The IKE Property is also subject to a 2% underlying NSR royalty to two underlying owners, whereby Amarc has the right to purchase: (1) one half of the royalty (1%) for $2 million ($1 million of which is payable in cash, Amarc common shares, or any such combination of cash and shares, at Amarc's discretion) at any time prior to commercial production; and (2) the second half of the royalty (1%) also for $2 million ($1 million of which is payable in cash, and the balance in Amarc common shares, or any such combination of cash and shares, at Amarc's discretion) at any time on or before a commercial mine production decision has been made in respect of the IKE Property. Amarc has agreed that upon completion of a positive feasibility study it will issue 500,000 common shares to the underlying owners.

  

In November 2014, Amarc acquired a 100% interest in the adjoining Granite Property from Great Quest Fertilizers Ltd. ("Great Quest", previously known as Great Quest Metals Ltd., which is also referred to as “Great Quest” herein). Great Quest holds a 2% NSR royalty on that property which can be purchased for $2 million, on or before commercial production (payable in cash, Amarc common shares, or any such combination of cash and shares, at Amarc’s discretion). In addition, there is an underlying 2.5% NSR royalty on certain mineral claims within the Granite property, which can be purchased at any time for $1.5 million less any amount of royalty already paid.

 

In January 2017, Amarc acquired a 100% interest in the adjoining Galore Property from Galore Resources Inc. ("Galore Resources"), clear of any royalties to Galore Resources. In January 2018, Amarc concluded an agreement with the underlying owners of the Galore Property, whereby Amarc acquired all of the underlying owners’ residual interest in and to the Galore Property, including five NSR and five NPI royalties.

 

On September 3, 2015, Amarc entered into an agreement (the "Agreement") with Thompson Creek (now a wholly owned subsidiary of Centerra) pursuant to which Thompson Creek could acquire, through a staged investment process within five years, a 30% ownership interest in mineral claims and crown grants covering the IKE District. Under the terms of the Agreement, Thompson Creek also received an option, after acquiring its 30% interest, to acquire an additional 20% interest in the IKE District, subject to certain conditions, including the completion of a Feasibility Study. On January 11, 2017, Amarc announced that Thompson Creek, having been acquired by Au-focused Centerra, relinquished its option to earn up to a 50% interest in the IKE District. Thompson Creek had a 10% participating interest in the IKE District by investing $6 million in exploration programs undertaken in 2015 and 2016, and elected to exchange its participating interest for a 1% Conversion NSR royalty from mine production, which is capped at a total of $5 million. As a result, Amarc re-acquired 100% interest in the IKE District.

  

The Newton Au Property

 

Amarc reported the sale of the Newton Au Property located in south-central BC in December 2020 to a wholly-owned subsidiary of Carlyle Commodities Corp. (“Carlyle”). Under the terms of the agreement, Amarc has received consideration comprising total cash of $300,000 and 5.5 million equity units (share plus warrant) in Carlyle valued at $0.25 per unit. In addition, Amarc retains a 2% NSR Royalty in the Property.

 

Newton was the subject of a National Instrument 43-101 Technical Report (Newton Technical Report) in 2012 which can be found on the Company’s website at www.amarcresources.com/projects/newton-gold-property/overview.

 

 
-27-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

The divestment of the Newton Property allows Amarc to retain exposure to the upside Au potential at Newton through its equity position in Carlyle and the retained NSR Royalty, whilst maintaining strategic focus on the development of its three high-value and expansive, 100%-owned Cu±Au districts – JOY, IKE and DUKE.

 

Corporate Update

 

On July 8, 2022, the Company announced that it had engaged Kin Communications Inc. to assist with its investor relations activities.

 

Market Trends

 

Average annual prices for Cu, Mo, Au and Ag during last 5 years and year to date in calendar 2024 are shown in the following table:

 

 

Average metal price (US$)

calendar year

Copper

Molybdenum

Gold

Silver

2019

2.72/lb

11.36/lb

1,393/oz

16.21/oz

2020

2.80/lb

8.68/lb

1,769/oz

20.54/oz

2021

4.27/lb

15.94/lb

1,799/oz

25.14/oz

2022

3.99/lb

18.73/lb

1,800/oz

21.74/oz

2023

3.84/lb

19.87/lb

1,963/oz

23.39/oz

2024 (to the date of this document)

3.77/lb

24.19/lb

2,028/oz

22.84/oz

 

1.3 SELECTED ANNUAL INFORMATION

 

The following information is derived from the Company's annual financial statements which have been prepared in accordance with IFRS as issued by the IASB effective for the respective reporting years of the Company and are expressed in Canadian Dollars. The Company's audited financial statements are publicly available on SEDAR at www.sedarplus.ca.

 

 
-28-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

 

 

2023

 

 

2022

 

 

2021

 

('$000's, except loss per share)

 

($)

 

 

($)

 

 

($)

 

Total assets

 

 

 6,091

 

 

 

 991

 

 

 

 1,560

 

Non-current liabilities

 

 

 700

 

 

 

 718

 

 

 

 570

 

Net (income) loss for the year

 

 

 33

 

 

 

 364

 

 

 

 (1,361 )

Basic and diluted (earnings) loss per share

 

 

 0.00

 

 

 

 0.01

 

 

 

 (0.01 )

 

1.4 SUMMARY OF QUARTERLY RESULTS

 

These amounts are expressed in thousands of Canadian Dollars, except per share amounts. Minor differences are due to rounding.

 

 

 

 Dec 31

 

 

 Sept 30

 

 

 June 30

 

 

 Mar 31

 

 

 Dec 31

 

 

 Sept 30

 

 

 June 30

 

 

 Mar 31

 

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

('$000's)

 

($)

 

 

($)

 

 

($)

 

 

($)

 

 

($)

 

 

($)

 

 

($)

 

 

($)

 

Net (income) loss

 

 

 (635 )

 

 

 (217 )

 

 

 405

 

 

 

 5,557

 

 

 

 (894 )

 

 

 (3,900 )

 

 

 (730 )

 

 

 772

 

Basic and diluted (earnings) loss per share

 

 

 (0.00 )

 

 

 (0.00 )

 

 

 0.00

 

 

 

 (0.00 )

 

 

 (0.00 )

 

 

 (0.02 )

 

 

 (0.00 )

 

 

 0.00

 

 

The variations in net results over the fiscal quarters presented above relate to the Company’s mineral exploration and evaluation activities, which if undertaken typically ramp-up in the summer during the 3rd calendar quarter. See the following section of the MD&A for additional discussions.

 

1.5 RESULTS OF OPERATIONS

 

The Company recorded a net income of $447,033 during the nine months ended December 31, 2023 compared to a net income of $5,523,429 during nine months ended December 31, 2022.

 

The following table summarizes the operating results by major categories between the nine and three months ended December 31, 2023 and 2022:

 

 

 

 Three months ended 

 

 

 Nine months ended 

 

 

 

 December 31, 

 

 

 December 31, 

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 ($)

 

 

 ($)

 

 

 ($)

 

 

 ($)

 

Exploration and evaluation assets expenditures

 

 

 1,712,000

 

 

 

 2,123,000

 

 

 

 9,182,000

 

 

 

 10,715,000

 

Administrative expenditures

 

 

 344,000

 

 

 

 213,000

 

 

 

 795,000

 

 

 

 560,000

 

Cost recoveries

 

 

 (2,714,000 )

 

 

 (3,091,000 )

 

 

 (9,992,000 )

 

 

 (16,104,000 )

 

 
-29-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

A breakdown by district and project of the Company’s exploration and evaluation expenses for the nine months ended December 31, 2023 and 2022 is as follows:

 

 

 

 IKE

 

 

 JOY

 

 

 DUKE

 

 

 OTHER

 

 

 TOTAL

 

Nine months ended December 31, 2023

 

($)

 

 

($)

 

 

($)

 

 

($)

 

 

($)

 

Assays and analysis

 

 

 9,450

 

 

 

 298,078

 

 

 

 776,762

 

 

 

 36,026

 

 

 

 1,120,316

 

Environmental

 

 

 38

 

 

 

 24,430

 

 

 

 34,038

 

 

 

 –

 

 

 

 58,506

 

Equipment rental

 

 

 –

 

 

 

 110,914

 

 

 

 179,912

 

 

 

 –

 

 

 

 290,826

 

Freight

 

 

 233

 

 

 

 20,271

 

 

 

 39,189

 

 

 

 –

 

 

 

 59,693

 

Geological, including geophysical

 

 

 205

 

 

 

 1,569,811

 

 

 

 1,700,112

 

 

 

 31,514

 

 

 

 3,301,642

 

Graphics

 

 

 255

 

 

 

 3,921

 

 

 

 20,129

 

 

 

 –

 

 

 

 24,305

 

Helicopter and fuel

 

 

 –

 

 

 

 773,615

 

 

 

 713,481

 

 

 

 –

 

 

 

 1,487,096

 

Property acquisition and assessments costs

 

 

 50,198

 

 

 

 2,920

 

 

 

 37,760

 

 

 

 103,120

 

 

 

 193,998

 

Site activities

 

 

 458

 

 

 

 968,850

 

 

 

 1,105,798

 

 

 

 2,224

 

 

 

 2,077,330

 

Socioeconomic

 

 

 20,982

 

 

 

 82,745

 

 

 

 113,823

 

 

 

 7,667

 

 

 

 225,217

 

Technical data

 

 

 –

 

 

 

 20,632

 

 

 

 61,191

 

 

 

 –

 

 

 

 81,823

 

Travel and accommodation

 

 

 3,372

 

 

 

 85,953

 

 

 

 170,257

 

 

 

 1,827

 

 

 

 261,409

 

 

 

 

 85,191

 

 

 

 3,962,140

 

 

 

 4,952,452

 

 

 

 182,378

 

 

 

 9,182,161

 

 

 

 

 IKE

 

 

 JOY

 

 

 DUKE

 

 

 OTHER

 

 

 TOTAL

 

Nine months ended December 31, 2022

 

($)

 

 

($)

 

 

($)

 

 

($)

 

 

($)

 

Assays and analysis

 

 

 4,272

 

 

 

 383,631

 

 

 

 25,311

 

 

 

 2,450

 

 

 

 415,664

 

Drilling

 

 

 –

 

 

 

 3,006,522

 

 

 

 219,678

 

 

 

 –

 

 

 

 3,226,200

 

Geological, including geophysical

 

 

 15,321

 

 

 

 1,000,305

 

 

 

 128,221

 

 

 

 123,157

 

 

 

 1,267,004

 

Helicopter and fuel

 

 

 –

 

 

 

 2,019,536

 

 

 

 –

 

 

 

 14,618

 

 

 

 2,034,154

 

Property acquisition and assessments costs

 

 

 50,198

 

 

 

 7,360

 

 

 

 12,240

 

 

 

 100,910

 

 

 

 170,708

 

Site activities

 

 

 148

 

 

 

 2,686,644

 

 

 

 200,918

 

 

 

 67,418

 

 

 

 2,955,128

 

Socioeconomic

 

 

 7,854

 

 

 

 284,744

 

 

 

 125,098

 

 

 

 20,170

 

 

 

 437,866

 

Technical data

 

 

 5,000

 

 

 

 22,000

 

 

 

 40,915

 

 

 

 –

 

 

 

 67,915

 

Travel and accommodation

 

 

 928

 

 

 

 105,794

 

 

 

 31,976

 

 

 

 1,584

 

 

 

 140,282

 

 

 

 

 83,721

 

 

 

 9,516,536

 

 

 

 784,357

 

 

 

 330,307

 

 

 

 10,714,921

 

 

The Company recorded cost recoveries for the nine months ended December 31, 2023 of $9,992,051. The cost recoveries are related to operations at the DUKE District and JOY District.

 

 
-30-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

The Financial Statements provide a breakdown of the Company’s general and administration expenses for the period ended December 31, 2023. A breakdown of general and administration expenses for the nine and three months ended December 31 of the current year and prior year is as follows:

 

 

 

 Three months ended 

 

 

 Nine months ended 

 

 

 

 December 31, 

 

 

 December 31, 

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 ($)

 

 

 ($)

 

 

 ($)

 

 

 ($)

 

Legal, accounting and audit

 

 

 55,131

 

 

 

 7,623

 

 

 

 89,866

 

 

 

 35,137

 

Office and administration

 

 

 103,763

 

 

 

 81,228

 

 

 

 296,929

 

 

 

 219,335

 

Rent

 

 

 13,721

 

 

 

 4,640

 

 

 

 40,975

 

 

 

 22,275

 

Shareholder communication

 

 

 83,014

 

 

 

 102,200

 

 

 

 225,069

 

 

 

 217,489

 

Travel and accommodation

 

 

 66,166

 

 

 

 16,400

 

 

 

 90,623

 

 

 

 38,852

 

Trust and regulatory

 

 

 21,457

 

 

 

 576

 

 

 

 51,171

 

 

 

 26,515

 

Total

 

 

 343,252

 

 

 

 212,667

 

 

 

 794,633

 

 

 

 559,603

 

 

Nine months ended December 31, 2023 as compared with the nine months ended December 31, 2022

 

Exploration and evaluation expenditures during the nine months ended December 31, 2023 decreased against those for the nine months ended December 31, 2022. This decrease in expenditures is primarily due to the decrease in expenditures related to exploration activities at the JOY District in the nine months ended December 31, 2023 versus those for the nine months ended December 31, 2022. At the DUKE District exploration and evaluation expenditures during the nine months ended December 31, 2023 increased against those for the nine months ended December 31, 2022. General and administration expenses for the nine months ended December 31, 2023 of $794,633 increased over the same period of the prior year. Cost recoveries during the nine months ended December 31, 2023 also decreased as compared with the nine months ended December 31, 2022. Cost recoveries recorded for the nine months ended December 31, 2023 relate to both the JOY District and DUKE District, while cost recoveries recorded for the nine months ended December 31, 2022 related primarily to the JOY District.

 

Three months ended December 31, 2023 (“2024 Q3”) as compared with the three months ended December 31, 2022 (“2023 Q3”)

 

Exploration and evaluation expenditures during 2024 Q3 decreased as compared with 2023 Q3. The decrease is primarily due to a decrease in exploration activities at the Company’s JOY District during 2024 Q3 versus 2023 Q3. Administrative expenditures incurred during 2024 Q3 increased as compared with 2023 Q3. Cost recoveries during 2024 Q3 decreased as compared with 2023 Q3. Cost recoveries recorded in 2024 Q3 related to both the JOY District and the DUKE District, while cost recoveries recorded in 2023 Q3 relate primarily to the JOY District.

 

1.6 LIQUIDITY

 

Historically, the Company's sole source of funding has been provided from the issuance of equity securities for cash, primarily through private placements to sophisticated investors and institutions, and from director loans. The Company's access to financing is always uncertain. There can be no assurance of continued access to significant equity funding to finance the Company's ongoing operations.

 

At December 31, 2023, the Company had a cash balance of $5,087,086 and accounts payable and accrued liabilities of $577,390.

 

 
-31-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Further advancement and development of the Company’s mineral property interests in the long run will require additional funding from a combination of the Company’s shareholders, existing or potential new partners, and debt financing. As the Company is currently in the exploration stage, it does not have any revenues from operations. Therefore, the Company relies on funding from its partners for its continuing financial liquidity and the Company relies on the equity market and debt financing as sources of funding. The Company continues to focus on preserving its cash resources while maintaining its operational activities.

 

The Company does not have any material capital lease obligations, purchase obligations or any other long-term obligations other than the office lease disclosed in note 14 of the unaudited financial statements for the nine months ended December 31, 2023.

 

1.7 CAPITAL RESOURCES

 

The Company has no lines of credit or other sources of financing which have been arranged or utilized. The Company has no "Purchase Obligations" defined as any agreement to purchase goods or services that is enforceable and legally binding on the Company that specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction.

 

1.8 OFF-BALANCE SHEET ARRANGEMENTS

 

None.

 

1.9 TRANSACTIONS WITH RELATED PARTIES

 

The required quantitative disclosure is provided in the Financial Statements, which are publicly available on SEDAR at www.sedarplus.ca.

 

Hunter Dickinson Inc.

 

Hunter Dickinson Inc. (“HDI”) and its wholly-owned subsidiary Hunter Dickinson Services Inc. (“HDSI”) are private companies established by a group of mining professionals. HDSI provides contract services for a number of mineral exploration and development companies, and also to companies that are outside of the mining and mineral development space. Amarc is one of the publicly-listed companies for which HDSI provides a variety of contract services.

 

The Company has one director in common with HDSI, namely Robert Dickinson. The Company’s President, Chief Executive Officer and Director, and Corporate Secretary are employees of HDSI and work for the Company under an employee secondment arrangement between the Company and HDSI.

 

 
-32-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Pursuant to an agreement dated July 2, 2010, HDSI provides cost effective technical, geological, corporate communications, regulatory compliance, and administrative and management services to the Company, on a non-exclusive basis as needed and as requested by the Company. As a result of this relationship, the Company has ready access to a range of diverse and specialized expertise on a regular basis, without having to engage or hire full-time employees or experts. The Company benefits from the economies of scale created by HDSI which itself serves several clients.

 

The Company is not obligated to acquire any minimum amount of services from HDSI. The monetary amount of the services received from HDSI in a given period of time is a function of annually set and agreed charge-out rates for and the time spent by each HDSI employee engaged by the Company.

 

HDSI also incurs third-party costs on behalf of the Company. Such third party costs include, for example, capital market advisory services, communication services and office supplies. Third-party costs are billed at cost, without markup.

 

There are no ongoing contractual or other commitments resulting from the Company's transactions with HDSI, other than the payment for services already rendered and billed. The agreement may be terminated upon 60 days' notice by either the Company or HDSI.

 

The details of transactions with HDSI and the balance due to HDSI as a result of such transactions are provided in the Financial Statements, along with the details of borrowings by the Company from Mr. Dickinson.

 

United Mineral Services Ltd.

 

United Mineral Services Ltd. (“UMS”) is a privately held company wholly-owned by one of the Company’s directors. UMS is engaged in the acquisition and exploration of mineral property interests. UMS does incur third party expenses on behalf of the Company from time to time.

 

Details of transactions with UMS and the balance due to UMS as a result of such transactions are provided in the Financial Statements.

 

1.10 PROPOSED TRANSACTIONS

 

Except as discussed in this MD&A, there are no proposed transactions requiring disclosure under this section.

 

1.11 CRITICAL ACCOUNTING ESTIMATES

 

Not required. The Company is a venture issuer.

 

1.12 CHANGES IN ACCOUNTING POLICIES INCLUDING INITIAL ADOPTION

 

The required disclosure is provided in the Financial Statements, which are publicly available on SEDAR at www.sedarplus.ca.

 

 
-33-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

1.13 FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS

 

The carrying amounts of cash, amounts receivable, marketable securities, accounts payable and accrued liabilities, balance due to a related party, and director’s loan approximate their fair values due to their short-term nature.

 

1.14 OTHER MD&A REQUIREMENTS

 

Additional information relating to the Company is available on SEDAR at www.sedarplus.ca.

 

1.14.1 ADDITIONAL DISCLOSURE FOR VENTURE ISSUERS WITHOUT SIGNIFICANT REVENUE

 

 

(a)

capitalized or expensed exploration and development costs

See 1.5 Results of Operations above.

 

 

 

 

 

(b)

expensed research and development costs

Not applicable.

 

 

 

 

 

(c)

deferred development costs

Not applicable.

 

 

 

 

 

(d)

general and administration expenses

See 1.5 Results of Operations above.

 

 

 

 

 

(e)

any material costs, whether capitalized, deferred or expensed, not referred to in (a) through (d)

None.

 

1.14.2 DISCLOSURE OF OUTSTANDING SHARE DATA

 

The following table details the share capital structure as of the date of this MD&A:

 

Common Shares - issued and outstanding

 

 

 

 

 

 

 

 

 

 

 211,702,894

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise price

 

 

Expiry Date

 

Shares Issuable

 

 

 

 

 

 

 

($)

 

 

 

 

(#)

 

 

 

 

 

Warrants

 

 

 0.050

 

 

November 26, 2024

 

 

 5,000,000

 

 

 

 

 

 

 

 

 0.085

 

 

November 26, 2024

 

 

 1,176,470

 

 

 

 

 

 

 

 

 0.080

 

 

December 1, 2028

 

 

 4,807,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 10,984,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

 0.050

 

 

October 4, 2024

 

 

 2,000,000

 

 

 

 

 

 

 

 

 0.120

 

 

March 9, 2025

 

 

 2,580,000

 

 

 

 

 

 

 

 

 0.120

 

 

March 9, 2027

 

 

 900,000

 

 

 

 

 

 

 

 

 0.110

 

 

July 8, 2027

 

 

 1,000,000

 

 

 

 

 

 

 

 

 0.125

 

 

April 11, 2026

 

 

 520,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 7,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 229,687,057

 

 

 
-34-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

1.14.3 DISCLOSURE CONTROLS AND PROCEDURES

 

The Company has disclosure controls and procedures in place to provide reasonable assurance that any information required to be disclosed by the Company under securities legislation is recorded, processed, summarized and reported within the appropriate time periods and that required information is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, so that decisions can be made about the timely disclosure of that information.

 

1.14.4 INTERNAL CONTROLS OVER FINANCIAL REPORTING PROCEDURES

 

The Company's management, including the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision of the Chief Financial Officer and Chief Executive Officer, the Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. The Company's internal control over financial reporting includes those policies and procedures that:

 

·

 pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

·

 provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the company; and

·

 provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

 

There has been no change in the design of the Company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting during the period covered by this Management's Discussion and Analysis.

  

1.14.5 LIMITATIONS OF CONTROLS AND PROCEDURES

 

The Company's management, including its Chief Executive Officer and Chief Financial Officer, believe that any system of disclosure controls and procedures or internal control over financial reporting, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Furthermore, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected.

 

 
-35-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

These inherent limitations include the realities that judgments in decision- making can be faulty and breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of controls. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

 

Accordingly, because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

 

1.15 RISK FACTORS

 

The risk factors associated with the principal business of the Company are discussed below. Briefly, these include the highly speculative nature of the mining industry characterized by the requirement for large capital investment from an early stage and a very small probability of finding economic mineral deposits.

 

In addition to the general risks of mining, there are country-specific risks associated with operations, including political, social, and legal risk.

 

Due to the nature of the Company's business and the present stage of exploration and development of its projects, the Company may be subject to significant risks. Readers should carefully consider all such risks set out in the discussion below. The Company's actual exploration and operating results may be very different from those expected as at the date of this MD&A.

 

Exploration and Mining Risks

 

Resource exploration, development, and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral deposits but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. Few properties that are explored are ultimately developed into producing mines. Unusual or unexpected formations, formation pressures, fires, power outages, labour disruptions, flooding, explosions, cave-ins, landslides and the inability to obtain suitable or adequate machinery, equipment or labour are other risks involved in the operation of mines and the conduct of exploration programs. The Company will rely on consultants and others for exploration, development, construction and operating expertise. Substantial expenditures are required to establish mineral resources and mineral reserves through drilling, to develop metallurgical processes to extract the metal from mineral resources, and in the case of new properties, to develop the mining and processing facilities and infrastructure at any site chosen for mining.

 

 
-36-

 

 

AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

No assurance can be given that minerals will be discovered in sufficient quantities to justify commercial operations or that funds required for development can be obtained on a timely basis. Whether a mineral deposit will be commercially viable depends on a number of factors, some of which are:

 

·

 the particular attributes of the deposit, such as size, grade and proximity to infrastructure;

·

 metal prices, which may be volatile, and are highly cyclical; and

·

 government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals, and environmental protection.

 

The exact effect of these factors cannot accurately be predicted, but the combination of these factors may result in the Company not receiving an adequate return on invested capital.

 

The Company will carefully evaluate the political and economic environment in considering any properties for acquisition. There can be no assurance that additional significant restrictions will not be placed on the Company's projects and any other properties the Company may acquire, or its operations. Such restrictions may have a material adverse effect on the Company's business and results of operation.

 

First Nations

 

Our properties are located within First Nations asserted traditional territories, and the exploration and development of these properties may affect, or be perceived to affect, asserted aboriginal rights and title, which has the potential to manifest permitting delays or opposition by First Nations communities.

 

The Company is working to establish positive relationships with First Nations. As part of this process the Company may enter into agreements commensurate with the stage of activity, with First Nations in relation to current and future exploration and any potential future production. This could reduce expected earnings.

 

Future Profits/Losses and Production Revenues/Expenses

 

The Company has no history of operations and expects that its losses will continue for the foreseeable future. No deposit that has been shown to be economic has yet been found on the Company's projects. There can be no assurance that the Company will be able to acquire any additional properties. There can be no assurance that the Company will be profitable in the future. The Company's operating expenses and capital expenditures may increase in subsequent years as needed consultants, personnel and equipment associated with advancing exploration, development and commercial production of the Company's projects and any other properties the Company may acquire, are added. The amounts and timing of expenditures will depend on:

 

·

 the progress of ongoing exploration and development;

·

 the results of consultants' analyses and recommendations;

·

 the rate at which operating losses are incurred;

·

 the execution of any joint venture agreements with strategic partners; and

·

 the acquisition of additional properties and other factors, many of which are beyond the Company's control.

 

 

 
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AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

The Company does not expect to receive revenues from operations in the foreseeable future, if at all. The Company expects to incur losses unless and until such time as the projects the Company advances, or any other properties the Company may acquire, enter into commercial production and generate sufficient revenues to fund its continuing operations.

 

The development of mineral properties will require the commitment of substantial resources to conduct the time-consuming exploration and development of the properties. There can be no assurance that the Company will generate any revenues or achieve profitability. There can be no assurance that the underlying assumed levels of expenses will prove to be accurate.

 

Additional Funding Requirements

 

The Company has limited working capital as at the current reporting date.

 

Further exploration on, and development of, the Company's projects will require additional resources and funding. The Company currently does not have sufficient funds to fully develop these projects. In addition, a positive production decision, if achieved, would require significant funding for project engineering and construction. Accordingly, the continuing development of the Company's properties will depend upon the Company's ability to obtain financing through debt financing, equity financing, the joint venturing of projects, or other means.

 

There is no assurance that the Company will be successful in obtaining the required financing for these or other purposes, including for general working capital.

 

Competitors in the Mining Industry

 

The mining industry is competitive in all of its phases, including financing, technical resources, personnel and property acquisition. It requires significant capital, technical resources, personnel and operational experience to effectively compete in the mining industry. Because of the high costs associated with exploration, the expertise required to analyze a project's potential and the capital required to develop a mine, larger companies with significant resources may have a competitive advantage over Amarc. Amarc faces strong competition from other mining companies, some with greater financial resources, operational experience and technical capabilities than those that Amarc possesses. As a result of this competition, Amarc may be unable to maintain or acquire financing, personnel, technical resources or attractive mining properties on terms Amarc considers acceptable or at all.

 

Risks That Are Not Insurable

 

Hazards such as unusual or unexpected geological formations and other conditions are involved in mineral exploration and development. Amarc may become subject to liability for pollution, cave-ins or hazards against which it cannot insure. The payment of such liabilities could result in increases in Amarc's operating expenses which could, in turn, have a material adverse effect on Amarc's financial position and its results of operations. Although Amarc maintains liability insurance in an amount which it considers adequate, the nature of these risks is such that the liabilities might exceed policy limits, the liabilities and hazards might not be insurable against, or Amarc might elect not to insure itself against such liabilities due to high premium costs or other reasons. In these events, Amarc could incur significant liabilities and costs that could materially increase Amarc's operating expenses.

 

 
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AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Environmental Matters

 

All of the Company's operations will be subject to environmental regulations, which can make operations more expensive or potentially prohibit them altogether.

 

The Company may be subject to the risks and liabilities associated with potential pollution of the environment and the disposal of waste products that could occur as a result of its activities.

 

To the extent the Company is subject to environmental liabilities, the payment of such liabilities or the costs that it may incur to remedy environmental pollution would reduce funds otherwise available to it and could have a material adverse effect on the Company. If the Company is unable to fully remedy an environmental problem, it might be required to suspend operations or enter into interim compliance measures pending completion of the required remedy. The potential exposure may be significant and could have a material adverse effect on the Company.

 

All of the Company's activities are or will be subject to regulation under one or more environmental laws and regulations. Many of the regulations require the Company to obtain permits for its activities. The Company must update and review its permits from time to time, and is subject to environmental impact analyses and public review processes prior to approval of the additional activities. It is possible that future changes in applicable laws, regulations and permits or changes in their enforcement or regulatory interpretation could have a significant impact on some portion of the Company's business, causing those activities to become economically unattractive at that time.

 

Market for Securities and Volatility of Share Price

 

There can be no assurance that an active trading market in the Company's securities will be established or sustained. The market price for the Company's securities is subject to wide fluctuations. Factors such as announcements of exploration results, as well as market conditions in the industry, may have a significant adverse impact on the market price of the securities of the Company. Shares of the Company are suitable only for those who can afford to lose their entire investment. The stock market has from time to time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies.

 

Conflicts of Interest

 

Certain of the Company's directors and officers may serve as directors or officers of other companies or companies providing services to the Company or they may have significant shareholdings in other companies. Situations may arise where these directors and/or officers of the Company may be in competition with the Company. Any conflicts of interest will be subject to and governed by the law applicable to directors' and officers' conflicts of interest. In the event that such a conflict of interest arises at a meeting of the Company's directors, a director who has such a conflict will abstain from voting for or against the approval of such participation or such terms. In accordance with applicable laws, the directors of the Company are required to act honestly, in good faith and in the best interests of the Company.

 

 
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AMARC RESOURCES LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS FOR

THE NINE MONTHS ENDED DECMBER 31, 2023

 

Payment of Dividends Unlikely

 

There is no assurance that the Company will pay dividends on its shares in the near future. The Company will likely require all its funds to further the development of its business.

 

Lack of Revenues; History of Operating Losses

 

The Company does not have any operational history or earnings and has incurred net losses and negative cash flow from its operations since incorporation. Although the Company will hope to eventually generate revenues, significant operating losses are to be anticipated for at least the next several years and possibly longer. To the extent that such expenses do not result in the creation of appropriate revenues, the Company's business may be materially adversely affected. It is not possible to forecast how the business of the Company will develop.

 

General Economic Conditions

 

Market conditions and unexpected volatility or illiquidity in financial markets may adversely affect the prospects of the Company and the value of its shares.

 

Reliance on Key Personnel

 

The Company will be dependent on the continued services of its senior management team, and its ability to retain other key personnel. The loss of such key personnel could have a material adverse effect on the Company. There can be no assurance that any of the Company's employees will remain with the Company or that, in the future, the employees will not organize competitive businesses or accept employment with companies competitive with the Company.

 

Furthermore, as part of the Company's growth strategy, it must continue to hire highly qualified individuals. There can be no assurance that the Company will be able to attract, assimilate or retain qualified personnel in the future, which would adversely affect its business.

 

Changes in Federal and Provincial Government Rules, Regulations or Agreements, or Their Application, May Negatively Affect the Company’s Ownership Rights, Its Access to or Its Ability to Advance the Exploration and Development of its Mineral Properties

 

The federal and provincial governments currently have in place or may in the future implement laws, regulations, policies or agreements that may negatively affect the Company’s ownership rights with respect to its mineral properties or its access to the properties. These may restrain or block the Company’s ability to advance the exploration and development of its mineral properties or significantly increase the costs and timeframe to advance the properties.

 

 
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