Results of the Initial Drill Program at ArcWest's Teeta Creek Porphyry Copper-Molybdenum-Gold-Silver Project

Vancouver, September 20, 2021 - ArcWest Exploration Inc. (TSXV: AWX) ("ArcWest") is pleased to announce assay results for the initial drill test of the Teeta Creek porphyry copper-molybdenum-gold-silver ("Cu-Mo-Au-Ag") project, from a program completed by Teck Resources Limited ("Teck"). Following the release of final reports on the program, Teck has relinquished its options to earn an interest in the Teeta Creek and NVI projects, northern Vancouver Island, B.C. (Figure 1). ArcWest is now considering new funding partners in order to advance the Teeta Creek and NVI projects. ArcWest's recommended targets for porphyry Cu-Mo-Au and epithermal Au-Ag on the Teeta Creek project remain to be drill tested. These include but are not limited to the following:

• Historic drillholes in the Teeta Creek valley floor intersected significant porphyry Cu mineralization but were not assayed for Au. These include drill holes 75-1 and 68-3 (Figure 2), which intercepted 0.35% Cu over 67 m and 0.23% Cu over 87 m, respectively. A 400 m wide corridor between these two drillholes remains virtually unexplored and remains a priority target for follow up drilling. The most well-developed porphyry style stockwork on the property is present in outcrops in the vicinity of these drill holes as are outcrops of Cu mineralized, intensely QSP/clay-pyrite altered dacite porphyry which contain evidence for relict potassic alteration. The presence of anomalous Cu mineralization within zones of grade destructive alteration suggests potential to vector into better Cu mineralization with depth as the system transitions to potassic dominant alteration.

• The most significant Cu and Au assays in grab samples collected from Teeta Creek by ArcWest geologists occur within variably altered porphyritic intrusive rocks along logging road outcrops at high elevations on the property. These include zones of strongly chalcopyrite mineralized porphyritic dykes from which grab samples returned assays up to 0.47% Cu. Proximal to this area, stibnite bearing epithermal Au-Ag mineralization occurs within a zone of intense argillic alteration that overprints the Teeta Creek porphyry system. Grab samples from this newly recognized epithermal Au-Ag system returned assays up to 21.1 g/t Au and 1 g/t Ag.

Tyler Ruks, President and CEO of ArcWest, commented, "ArcWest thanks our partner Teck for advancing our Teeta Creek and NVI projects. Further drilling at Teeta Creek is required to test the core of the system, including a virtually unexplored 400 m wide corridor situated between the two best historical drill intercepts on the property. At NVI, fieldwork confirmed previously identified multiphase brecciation and veining associated with the Ecila magnetic anomaly, as well as discovering a new porphyry prospect at Keogh that is highly deserving of follow up exploration. ArcWest continues to be fully committed to unlocking the emerging value of its 100% owned Teeta Creek and NVI porphyry projects and is now considering new funding partners."

The 2021 Teeta Creek drill program included two drill holes for a total of 1,116 metres of drilling from two platforms (Table 1). The 2021 drill holes tested the northwestern extent of the known mineralization at Teeta Creek in an area where logging roads exposed mineralized diorite and feldspar porphyry dykes and breccias across widths of over 450 metres. The two drill platforms are situated 200 to 350 metres elevation above and 600 m north of historical drill holes which intersected significant copper mineralization over a broad area, including drill hole 75-1 (0.35% Cu over 67.1 metres). Both 2021 drill holes intercepted broad intervals of copper and molybdenum mineralization (Table 2). Individual core assays ranged up to 1.27 grams per tonne (g/t) Au over 2.4 m, 47.2 g/t Ag over 3.35 m, 1.047% Cu over 1.09 m, and 0.104% Mo over 2.09 m. ArcWest believes that the presence of widespread intense QSP at the lowest elevations tested during the drill program suggests potential to vector into better copper mineralization with depth as the system transitions to potassic dominant alteration.

Table 1: Location and orientation data, 2021 Teeta Creek drill program

Table 2: Significant assay intervals, 2021 Teeta Creek drill program

1. Width refers to drill hole intercepts; true widths have not been determined. EOH = End of hole.
   
   
2. CuEq (copper equivalent) has been used to express the combined value of copper (Cu), gold (Au), molybdenum (Mo), and silver (Ag) as a percentage of copper, and is provided for comparative purposes only. No allowances have been made for recovery losses that may occur should mining eventually occur. Calculations use metal prices of US$4.00/lb copper, US$1,800/oz gold, US$10/lb molybdenum, and US$22/oz silver, using the general formula CuEq % = Cu% + (Au g/t * (Au $ per oz/ 31.1034768) / (Cu $ per lb* 22.04623)) + (Ag g/t * (Ag $ per oz/ 31.1034768) / (Cu $ per lb* 22.04623)) + (Mo % * (Mo $ per lb / Cu $ per lb)).

Teeta Creek is part of a recently recognized late Neogene porphyry Cu-Mo metallotect, containing mineralized feldspar-(quartz-biotite-hornblende) phyric porphyritic intrusive rocks dated at 6.3 Ma (U-Pb, zircon; Nixon et al., 2020), making Teeta Creek one of the youngest porphyry copper systems in North America (Figure 1). The porphyry intrudes an older dioritic intrusion which is also altered and mineralized, but which may be a passive host rock to the younger porphyry system. The porphyry intrudes along an important northeast trending regional fault system, the Brooks Peninsula Fault Zone, which appears to offset the older diorite (Figure 1).

TTK-2021-001

Drill hole 2021-001 was collared outside the historical induced polarization anomaly (chargeability high) outlined by Cities Service Minerals Corp. in 1974 and directed toward the periphery of the historical Cu-Mo soil anomaly (Figure 2; Noel 1979). TTK-2021-001 primarily intersected the older diorite intrusion (79% of the core), with only minor porphyry (17%). The dominant alteration includes sodic-calcic (39%) and chlorite-magnetite (26%). The lack of strongly altered porphyry in this drill hole suggests that it only tested the margins of the porphyry system. A zone of late gold-arsenic-antimony mineralization is associated with quartz-sericite-pyrite alteration, quartz-carbonate veins and porphyry dykes between 204.25 and 219.5 metres.

TTK-2021-002

Drill hole TTK-2021-002 was collared about 320 metres west of TTK-2021-001 within the historical chargeability high and directed towards the western lobe of the historical Cu-Mo soil anomaly. Although collared in diorite, significant intervals of feldspar porphyry, including a late phase, were encountered below 220 metres downhole. Porphyry intrusions comprise 36% of the total length of the hole, including almost all of the interval 460 to 630 metres (EOH). A number of small breccia zones with angular and cuspate clasts were intersected below 305 m.

The dominant alteration in 2021-002 is quartz-sericite-pyrite (34% of total core length), with lesser potassic (28%) and sericite-chlorite (17%). The sodic-calcic alteration of hole 2021-001 is largely absent. Late phase porphyry dykes are dilutive with respect to Cu and Mo mineralization but can be strongly QSP altered and locally contain late epithermal Au-As-Sb (e.g. 1.0 g/t Au over 4.6 m, 469.6 - 474.2 m).

Although both drill holes intersected broad intervals of low-grade Cu-Mo mineralization, ArcWest believes that the central target area of the porphyry system was not tested by the initial phase of drilling (Figure 2). This central target of strongly altered and mineralized porphyry extends from the upper switchback of the main logging road, where well mineralized porphyry returned Cu assays up to 0.47%, south-southeast through a zone of intensely QSP altered and stockworked porphyry north of the Brooks Peninsula Fault between drill holes 75-1 and 68-2. This target area follows the long axis of the historical Cu-Mo soil anomaly, and is east of (or internal to) the 1974 chargeability high. Strike length of this untested porphyry target is about 1000 metres from the upper switchback to the southern lobe of the chargeability high, with a width of 200 to 400 metres.

NVI Project

Teck also completed a program of reconnaissance mapping and rock sampling on ArcWest's 8529 hectare NVI project, also located in the late Neogene porphyry Cu-Mo belt of northern Vancouver Island. The most notable result was the discovery of a series of northwest-striking quartz-feldspar porphyry dykes cutting Karmustsen Formation mafic volcanics at the Keogh showing about 2 km north of Keogh Lake. The porphyry dykes are 2 - 10 metres wide and contain disseminated and vein-hosted pyrite-pyrrhotite-chalcopyrite+bornite mineralization. A composite chip sample across 8 m returned 0.347% Cu. The copper-mineralized porphyry is located near the southwest margin of a 300 by 600 m long chargeability high which is open to the southeast.

At the Ecila showing, located 3.6 km east of Alice Lake, multiphase magnetite, quartz-magnetite and quartz-chalcopyrite veining cutting patchy to pervasively magnetite altered Karmutsen basalt and microdiorite intrusions were identified, including a fine grained diorite body cut by magnetite-cemented breccia which is crosscut by quartz-calcite-magnetite-pyrite-chalcopyrite veins. This showing is located within a strong 1.8 km wide circular magnetic high. Limited rock sampling of the Ecila area by Teck returned Cu values up to 0.253%. The Ecila copper occurrence has yet to undergo ground geophysical surveys, soil geochemical surveys or drill testing.

Multiple targets at NVI remain to be ground-truthed. These include geophysical targets (magnetic highs) delineated in a recent Geoscience BC geophysical survey of the area that have potential for Ecila-like discoveries. Multiple historical mineral occurrences at NVI have yet to be relocated and sampled. These include the Walt showing (MINFILE, 2021) at the northeastern side of the property, for which a historical report references a malachite stained diorite that has yet to be relocated.

ArcWest's corporate presentation is available for download here. ArcWest's technical presentation is available for download here.

Quality Control

The 2021 Teeta Creek drill program was funded and operated by Teck. All drill core was logged, photographed, and cut in half with a diamond saw at a core logging facility in Port Alice, B.C. Half of the core was sampled and sent to the Bureau Veritas assay laboratory in Vancouver, British Columbia for analysis. Samples were prepared using prep. code: PRP70-1KG to produce a pulp. The pulps were analyzed by three analytical methods: the multi-element MA250 4-acid lithogeochemistry analysis, AQ250 aqua regia ultra-trace analysis and fire assay for Au. There was also an additional request for over limit analysis to be carried out by the MA370 ore grade 4-acid method on any sample reporting Cu values greater than 1%. Lithogeochemical assays for a full multi-element suite (59 elements) were obtained using the MA250 method. A total of 649 core samples were submitted and returned geochemical data not including 134 QA-QC samples. Duplicate samples were collected every 1 in 20 core samples and half core was cut in half again and separated into two samples for a single sample interval. QA/QC standards included a pulp blank (OREAS 22F) inserted every 1 in 40 core samples, a coarse blank inserted every 1 in 20 core samples, a medium grade (OREAS 501C) or high grade (OREAS 503D) Cu standard inserted in every 1 in 20 core samples. QAQC data has been compiled and furnished to ArcWest.

References

MINFILE, 2021. MINFILE BC mineral deposits database: BC Ministry of Energy and Mines, Mines and Petroleum Resources.

Nixon, G.T., Friedman, R.M., and Creaser, R.A., 2020. A new metallotect: late Neogene porphyry Cu-Mo mineralization in British Columbia. British Columbia Ministry of Energy, Mines and Petroleum Resources, British Columbia Geological Survey GeoFile 2020-03.

Noel, G.A., 1979. Report on the Teeta Creek property, Neroutsos Inlet, Nanaimo M.D., B.C. B.C. Property File ID 64905.

About ArcWest Exploration Inc.

ArcWest Exploration is a project generator focused on porphyry copper-gold exploration opportunities throughout western North America. The company is in possession of eight 100% owned copper-gold projects throughout BC's premier porphyry copper-gold districts; at least four of these projects are scheduled to undergo partner funded drill testing in 2021. By conducting partner funded exploration on multiple exploration projects simultaneously, ArcWest's chances of discovery are enhanced while exposing shareholders to minimal dilution. The company is managed by an experienced technical team with a track record of discovery and a reputation for attracting well-funded senior partners, including Freeport McMoRan, Robert Friedland group companies, ITOCHU, Antofagasta and Teck.

Qualified Person

ArcWest's disclosure of a technical or scientific nature in this news release has been reviewed and approved by John Bradford, PGeo, Technical Advisor, who serves as a Qualified Person under the definition of National Instrument 43-101.

For further information please contact: Tyler Ruks, President and CEO at +1 (604) 638 3695.

Investors are cautioned that ArcWest Exploration Inc. has not verified the data from the Island Copper deposit. Further, the presence and style of mineralization on this property is not necessarily indicative of similar mineralization on the ArcWest Exploration Inc. property. Historical assays from drill programs on its properties have not been verified by ArcWest but have been cited from sources believed to be reliable. This news release contains statements about ArcWest's expectations and are forward-looking in nature. As a result, they are subject to certain risks and uncertainties. Although ArcWest believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and ArcWest undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

This news release contains statements about ArcWest's expectations and are forward-looking in nature. As a result, they are subject to certain risks and uncertainties. Although ArcWest believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and ArcWest undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/96993