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'ArcWest is pleased to join with Teck'

ArcWest Exploration says Teck Resources can earn up to 80% of its Teeta Creek porphyry project on Vancouver Island in British Columbia.
'ArcWest is pleased to join with Teck' 'ArcWest is pleased to join with Teck' 'ArcWest is pleased to join with Teck' 'ArcWest is pleased to join with Teck' 'ArcWest is pleased to join with Teck'

A sample from ArcWest’s Teeta Creek project on Vancouver Island

Staff reporter

It describes the project as 23km south of BHP's past-producing Island Copper copper-molybdenum-gold mine and 40km south of NorthIsle Copper and Gold's Hushamu deposit and Pemberton Hills project, where Freeport-McMoRan is earning in.

Historical drilling results have included 67.1m at 0.35% copper, while rock sampling by ArcWest and Seven Devils Exploration has returned up to 0.473% copper, 0.031% molybdenum and 21.1g/t gold.

Teck can earn an initial 60% by spending C$3 million (US$2.3 million) on exploration and paying $250,000 over three years.

After Teck exercises its first option, ArcWest will have 90 days to convert its interest to a 1.5% NSR in lieu of a joint venture stake. If ArcWest doesn't, Teck will then have a second option to earn a further 20% by spending a further $8 million (US$6 million) over three years.

"ArcWest is pleased to join with Teck in advancing our Teeta Creek property, an exciting early stage porphyry copper-molybdenum-gold project," president and CEO Tyler Ruks said.

The company is aiming to become a project generator, focused on its properties in the British Columbia, and Ruks said discussions with other potential JV partners were ongoing.

Seven Devils and Millrock Resources are its major shareholders.

The junior had about C$1.5 million (US$1.1 million) in working capital at June 30.

Its shares (TSXV: AWX) had traded at 19.5c in October 2018 and touched a one-year low yesterday of 4.5c.

They closed at 5c to capitalise it at $3 million (US$2.3 million).