Second Quarter Review 2002
Vancouver, British Columbia, Canada, July 29, 2002
Bradford Cooke, President and CEO of Canarc Resource Corp. presents shareholders with this review of the Second Quarter, 2002 and our plans for the Third Quarter. Over the past three months, Canarc continued to focus on negotiating with our partner Grassalco to resolve the outstanding issues regarding the Benzdorp property in Suriname.
I am pleased to say that we are about to conclude an amending property agreement to allow Canarc to return to work at Benzdorp. Some work still remains to incorporate the local company to hold the concession titles but management is now optimistic that this can be accomplished early in the Third Quarter 2002.
In the meantime, we saw a continued revival of the gold price with an 8% rise to US$330 in the Second Quarter before pulling back. Gold stocks recorded even greater gains as Canarc jumped a further 220% to a high of CA$0.59 per share before settling in the $0.40 range. Several gold mining and exploration companies completed financings providing strong evidence that the capital markets have developed a healthy appetite for gold stocks.
The first leg up in the new gold cycle peaked in June at US$330 per oz and both gold and gold stocks have pulled back since then to consolidate some of the gains. Management firmly believes that gold should enter a longer and stronger second leg up starting in the Third Quarter. It is only a matter of time before Canarcís stock price starts to reflect the true value of our gold assets. However, the real upside in our shares lies in exploring and developing the potential of gold properties like Benzdorp and New Polaris.
Our goal for the Third Quarter will be to finalize the local incorporation and title transfer aspects of the revised Benzdorp agreement, consider a small financing and commence the next phase of exploration trenching on this exciting property. Shareholders and investors are now welcome to visit our new website, www.canarc.net, which went live today.
ON BEHALF OF THE BOARD OF DIRECTORS