21:56:55 EDT Mon 14 Jul 2025
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Canasil Resources options Brenda to Amarc Resources

2025-02-11 08:52 ET - News Release

Mr. Bahman Yamini reports

CANASIL GRANTS OPTION TO AMARC TO ACQUIRE CANASIL'S BRENDA GOLD-COPPER-SILVER PROPERTY IN THE TOODOGGONE-KEMESS PORPHYRY COPPER-GOLD REGION IN BRITISH COLUMBIA, CANADA

Canasil Resources Inc. has signed a mineral property option agreement with Amarc Resources Ltd., pursuant to which Amarc can acquire a 100-per-cent interest in Canasil's Brenda gold-copper-silver property, comprising 22 mineral claims in the Toodoggone-Kemess porphyry copper-gold region that are located adjacent to Amarc's Joy tenure and immediately to the east of Amarc's Aurora gold-copper-silver discovery.

The terms of the five-year option providing for Amarc to acquire 100 per cent of the Brenda property require annual payments of $400,000 to Canasil to maintain the option, with the exercise price of the option to purchase starting at $8-million, if exercised in the first year, and increasing on an annual basis to $12-million in year 5. The annual cash payments are not credited toward the option exercise price. Canasil will retain a 2-per-cent net smelter return royalty, of which 1 per cent (or one-half) can be acquired for $5-million before the commencement of commercial mining operations, and $10-million after the commencement of mining. Amarc will also be responsible for undertaking exploration expenditures to advance the mineral claims by at least one year during each year of the option. The Brenda property claims fall largely within the area of common interest under the Amarc/Freeport-McMoran Mineral Properties Canada Inc. agreement of 2021 (see Amarc's May 18, 2021, news release) and so will be offered to be made part of the Joy district, as defined by that agreement.

Canasil president and chief executive officer Bahman Yamini commented: "We are pleased to enter into this option agreement with Amarc, which requires a significant cash exercise price and retained NSR, if exercised, and will provide funding to maintain the company's operations and the Brenda property claims through the annual option payments and expenditure requirements. Amarc is a highly recognized and successful operator in the region, backed by major mining companies, and we look forward to working with them to advance the Brenda project."

Amarc's Aurora discovery

In January, 2025, Amarc released drill results from its new, high-grade, gold-rich Aurora porphyry Cu-Au-Ag discovery at Amarc's 100-per-cent-owned Joy copper-gold district in the prolific Toodoggone-Kemess porphyry Cu-Au region of north-central British Columbia. Aurora is located within the new NWG target, a portion of the 495-square-kilometre Joy district that had not previously been drill tested. The Aurora discovery is characterized by high Au grades with strong Cu and Ag values and excellent lateral and vertical continuity, extending from near surface (see Amarc's news releases dated Jan. 17 and Jan. 20, 2025). Freeport is fully financing work programs at Joy to earn an interest in the project, and Amarc is the operator of all programs.

Canasil's Brenda property

Canasil's 44.5-square-kilometre Brenda property, optioned to Amarc, is surrounded on three sides by Amarc's Joy mineral tenures. The Brenda property is underlain by the same highly prospective volcanics and transitional porphyry Cu-Au and epithermal Au-Ag geological setting as at Amarc's recent Aurora and Canyon porphyry Cu-Au discoveries. Canasil's historical exploration of the Brenda property has identified both epithermal and porphyry-related rock alteration assemblages hosting copper, gold and silver mineralization, and includes an intersection of 78 metres grading 0.61 gram per tonne Au and 0.1 per cent Cu from 110 m in hole BR-07-05, which was collared adjacent to a large gossan (see the National Instrument 43-101 technical report at Canasil's website).

The technical information herein has been reviewed and approved by Alvin Jackson, PGeo, a qualified person as defined by NI 43-101, a director of Canasil.

We seek Safe Harbor.

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