Amarc's District-Scale Copper Play: Assessing Scalability and the Path to a World-Class Asset

The core of Amarc's investment thesis is built on two pillars: the exceptional quality of its flagship AuRORA discovery and the scalability of its district exploration model. Together, they define a path to a world-class asset with a vast Total Addressable Market.

The AuRORA Deposit itself is a shallow, high-grade porphyry copper-gold-silver target that has demonstrated remarkable continuity. In 2024, the initial discovery was made across a 500m by 600m area. The 2025 drilling program, a systematic expansion effort, has now extended that known zone by a full kilometer in both directions, testing an area of approximately 1 km by 1 km. This isn't just incremental growth; it's the kind of lateral and vertical expansion that signals a large, potentially open-ended deposit. The company believes the rare combination of high gold with strong copper and silver grades, along with this emerging scale, gives AuRORA the hallmarks of a Tier One asset in the making. The deposit remains open to the north, east, and west, with further assays pending, suggesting significant upside remains.

This discovery is the centerpiece of a broader, validated strategy. Amarc's district-scale model is being executed across the JOY, DUKE, and IKE districts in British Columbia. The JOY District alone hosts multiple targets, including the historical PINE and Brenda deposits and other discoveries like TWINS and Canyon. By systematically exploring these large land packages, Amarc is targeting multiple scale deposits, not just one. This approach dramatically increases the potential value stack. If AuRORA proves to be a major asset, the surrounding district could host additional economic deposits, multiplying the company's total resource base.

Crucially, this ambitious exploration is being funded without diluting shareholders. Amarc has secured approximately $81 million from joint ventures, with up to $200 million in potential funding available. The primary partner, Freeport-McMoRan, has already invested C$35 million and is now advancing to earn an additional 10% interest by funding a further C$75 million. This major partner backing provides not only capital but also technical validation and reduces the financial risk of the exploration program. The company is positioned to deliver wealth through disciplined execution of this model.

The bottom line is scalability. Amarc isn't betting on a single lucky hole. It's building a portfolio of high-potential districts, with AuRORA as the anchor discovery. The district model, backed by major partners and non-dilutive funding, provides a repeatable and capital-efficient path to expand its asset base. If AuRORA fulfills its promise, the company's strategy positions it to capture a significant share of a multi-billion-dollar copper-gold market.

Pipeline Expansion and Resource Estimate Timeline

The 2025 drill program was a dual-purpose success, simultaneously expanding the flagship AuRORA Deposit and de-risking the broader JOY District pipeline. The primary focus was on AuRORA, where 24 core holes (9,687 m) were completed to test the deposit's limits. The results were a clear expansion story: the known zone was extended by a full kilometer in both directions, creating a 1 km by 1 km footprint. The deposit remains open to the north, east, and west, with further assays pending, indicating the expansion is far from complete. This systematic step-out drilling is the essential first phase of de-risking, transforming a discovery into a defined resource.

At the same time, the program targeted the district's other high-potential assets. Drilling was conducted at the PINE Deposit and the Twins and Canyon Discoveries, as well as other drill-ready targets across the 630 km² JOY District. This parallel effort is critical for the district-scale model. It ensures that even if AuRORA proves to be a major asset, the surrounding land package is being actively explored for additional scale deposits, multiplying the company's potential value stack.

The clear near-term catalyst is the completion of an inaugural resource estimate for AuRORA. This milestone will be a major de-risking event, converting the current inferred resource status into a more robust, bankable category. It will provide the quantitative foundation for future feasibility studies and, more importantly, a clear valuation anchor for the market. The timeline is now set: with the 2025 drilling complete and assays pending, the resource estimate is the logical next step in the sequential de-risking process.

Amarc's operator role is key to this efficient pipeline management. By managing all aspects of the exploration work programs while they are fully funded by partner Freeport, the company maintains significant leverage. It controls the exploration pace and data quality without bearing the upfront capital cost. This setup allows for a rapid, capital-efficient path to de-risking the AuRORA resource and advancing the entire JOY District portfolio. The company is positioned to move from discovery to definition, a crucial phase for scaling its asset base and capturing market share in the critical minerals race.

Partnership Leverage and Financial Execution

The financial engine behind Amarc's growth is its partnership with Freeport-McMoRan. This isn't just a source of capital; it's a strategic alliance that de-risks the path from discovery to resource. Freeport's accelerated funding and its clear option to earn up to a 70% interest by investing an additional $54.6 million over five years demonstrate exceptional partner confidence. That confidence was triggered by the 2024 AuRORA discovery and has been reinforced by the 2025 drill program's success in expanding the deposit.

The financial mechanics are a model of capital efficiency. Amarc, as the operator, manages the exploration work programs while Freeport funds them. This allows the company to maintain significant leverage and control over its asset portfolio without diluting shareholders. The 2025 program, which completed 24 core holes (9,687 m) to expand AuRORA, was fully funded by Freeport. This setup turns exploration from a costly gamble into a repeatable, partner-funded process. The company's role is to execute the science and manage the data, while the major partner bears the upfront cost and shares in the upside.

Yet this partnership model highlights the next financial hurdle. The 2025 drilling successfully expanded AuRORA, but the deposit remains open to the north, east, and west. To define an inaugural resource estimate-a critical de-risking milestone-the company will need to continue drilling into these open zones. This requires further investment, which Freeport is contractually obligated to provide under its earn-in agreement. The partnership thus provides a clear, committed capital channel to advance the project through its next phase.

The bottom line is a scalable financial architecture. Amarc has secured approximately $81 million from joint ventures with up to $200 million in potential funding available. This non-dilutive capital, anchored by Freeport's major commitment, allows the company to systematically de-risk its district-scale pipeline. It can fund the exploration needed to convert AuRORA's promise into a bankable resource, all while maintaining control and a strong balance sheet. This financial discipline is the bedrock of its growth strategy.

Market Context and Growth Catalysts

Amarc's growth trajectory is set against a powerful, long-term secular trend. The International Energy Agency projects that copper demand will double by 2040, driven by the global shift to electrification in transportation, energy grids, and industrial processes. This isn't a fleeting cycle; it's a fundamental structural shift that creates a massive, multi-decade tailwind for new copper supply. For a company like Amarc, which is building a district-scale portfolio in a premier mining region, this demand forecast defines the Total Addressable Market and validates its exploration focus.

The company's recent stock performance reflects the market's recognition of its discovery momentum. Since the beginning of December, the stock has gained 12.31%, a move that coincides with the successful 2025 drill program and the expansion of the AuRORA Deposit. This price action shows that investors are beginning to price in the potential for a major asset, moving beyond the initial discovery phase to the next stages of de-risking and value realization.

The path forward is sequential and well-defined. The immediate catalyst is the completion of an inaugural resource estimate for AuRORA, which will convert the current inferred resource into a more robust, bankable category. This milestone is the essential next step after the 2025 drilling expansion and will provide the quantitative foundation for future feasibility studies. It will also serve as a clear valuation anchor, likely triggering renewed interest from the broader investment community.

Beyond AuRORA, the company's district-scale model offers a pipeline of additional catalysts. The JOY District is already a portfolio of targets, but the advancement of the DUKE and IKE districts represents another pathway to shareholder value. These are not distant possibilities; they are active exploration programs that could yield their own scale discoveries, multiplying the company's total resource base. The partnership model, which has secured up to $200 million in funding, provides the capital to advance these districts systematically.

The bottom line is a company positioned to capture value at multiple points. It is scaling its flagship asset through discovery and definition, while its broader district strategy ensures a continuous pipeline of potential high-impact events. In a market where copper is the metal of the energy transition, Amarc's execution of a capital-efficient, partner-funded model gives it a clear path to become a significant player. The recent price strength is just the opening chapter; the next chapters-resource estimate, feasibility studies, and potential transactions-will determine the ultimate scale of its growth.