Updates on the Bellavista and New Polaris Projects
Vancouver, British Columbia, Canada, June 5, 2002
This week, Wheaton River Minerals Ltd. announced the sale of their interest in the Bellavista gold project in Costa Rica to Glencairn Explorations Ltd. Glencairnís Board of Directors and management team are very experienced in the mining industry and knowledgeable with Bellavista in particular, having completed the feasibility study and environmental permitting for the project as the previous management group of Wheaton River.
Canarc still retains its carried interest in this attractive gold project, ranging from 6% before capital payback to 18.3% after capital payback. Our interest is non-participating so Canarc does not have to contribute its share of costs to develop and operate the mine. However, Canarc does receive an advance production cash payment each year of US$117,750 from our partner.
In November, we elected to swap a portion of this yearsí cash payment and all of the 2003 payment in return for 529,000 shares of Wheaton River at $0.50 per share. The value of this strategic investment has more than tripled in recent months.
The Bellavista project has proven and probable ore reserves totalling 11.24 million tonnes grading 1.54 gpt, or 555,000 oz contained gold. Wheaton River completed a feasibility study indicating that an open pit, heap leach gold mine could produce on average 60,000 oz per year for 7.3 years at a total cash operating cost of US179 per oz.
In other news this week, Redcorp Ventures Ltd. announced that all necessary documents have been delivered to the B.C. Ministers of Energy and Mines and of Sustainable Resource Management for a decision on the granting of a Project Approval Certificate for their Tulsequah Chief Mine project. Tulsequah Chief is located adjacent to Canarcís New Polaris gold project in northwestern B.C. The Ministersí decision should not take more than 45 days as per the B.C. Environmental Assessment Act.
The granting of government permits for Redcorp to develop the Tulsequah Chief mine should benefit Canarc, not only because of the proximity of the two properties but also because Redcorpís application includes the construction of road access to within three kilometres of the New Polaris property.
Canarc has spent over CA$18 million exploring and developing the New Polaris deposit, which has the potential to be one of the largest gold deposits in western Canada. More than 200 drill holes were drilled in the 1990ís, including DDH 97-44 that returned 0.42 oz per ton over a 112.2 foot core length (70% true width).
Additional pre-feasibility work such as metallurgical sampling and testing is planned for this summer, after which time a program and budget to complete a full feasibility study and a new estimate of reserves and resources will be prepared.
ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.
Bradford J. Cooke
President and CEO
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