Canarc Resources Corp. TSX-V:CCM - OTC-BB:CRCUF
     
 

News

print page
 
print page
 

 

Canarc Resource Corp. (CCM:TSX and CRCUF:OTC-BB) announced today plans for a CA$2.7 million, 60 hole, Phase 3 in-fill drilling program in 2006 at the New Polaris gold property located 60 km south of Atlin in northwest British Columbia. New Polaris is one of the largest undeveloped pure gold deposits in western Canada.

Drilling will commence in the 2nd quarter, 2006 and should be completed by the end of the 3rd quarter so that a new resource estimate, conceptual mine plan, initial economic evaluation and mine permit application can be completed by year-end.

Canarc owns a 100% interest (subject to a 10% net profit royalty) in the New Polaris property, a former high-grade, underground gold mine that produced 231,000 oz of gold between 1939 and 1951. From 1990 to 1997, Canarc invested over CA$15 million exploring New Polaris to outline an historic resource of 1.3 million oz gold contained within 3.6 million tons grading 0.36 oz per ton (not NI 43-101 compliant, not to be relied upon, see additional comments below).

The planned Phase 3 program will target the C and Y vein systems and is designed to develop an NI 43-101 compliant measured, indicated and inferred gold resource containing a minimum 600,000 oz that will serve as the basis for an initial nine year mine life. The 2006 drill program will consist of 18,600 metres (61,000 ft) of diamond drilling in approximately 60 holes to in-fill drill a 365 m by 350 m strike and dip area of the C vein and a 60 m by 275 m strike and dip area of the Y vein, as shown in the attached longitudinal and cross sections.

Previous drilling within the areas of the proposed in-fill drill program returned a weighted average grade and thickness of 0.46 opt (14.3 gpt) gold over an average core length of 14.6 feet (4.5m) for the C vein and 0.50 opt (17.1 gpt) over an average core length of 15.7 feet (4.8 m) for the Y vein.
Results of prior drill holes are shown in the attached table.  Both veins remain open down dip and to a certain extent along strike.

After completing a new resource estimate, Canarc plans to refine the conceptual mine plan, complete an initial economic evaluation and enter into the provincial mine development permitting process in the fourth quarter of 2006. The New Polaris project would then move to full feasibility and permitting in 2007.

In the past two years, the provincial and federal governments granted all necessary approvals and permits to Redcorp Ventures Ltd. for the construction of road access and development of a large underground poly-metallic mine at the Tulsequah Project immediately adjacent to New Polaris. As Redcorpís environmental studies for the Tulsequah project are now public documents, Canarc should be able to utilize these studies to speed up the permitting of the New Polaris Project.

Initial metallurgical testing done on New Polaris ores in 2004 shows very high gold recoveries are possible.  Up to 96.6% of the gold is recoverable into concentrate by grinding the ore to 95% minus 200 mesh and then running it through 3 cycles of rougher floatation. Pressure leaching and bio-oxidation tests of the floatation concentrates followed by cyanide leaching of the oxidized cons achieved overall gold recoveries of 95% and 88.9% respectively.

The preferred metallurgical alternative now under consideration for New Polaris is the shipping of gold concentrates to an existing third party processing facility elsewhere in North America, similar to the past production of the New Polaris mine. From 1938 to 1951, New Polaris gold concentrates were shipped by barge to the smelter in Tacoma, WA. Additional metallurgical tests work will be needed for the final feasibility study on New Polaris.

Bradford Cooke, M.Sc., P.Geo., Chairman and CEO and James Moors, B.Sc., P.Geo., Vice President Exploration of Canarc are the Qualified Persons who prepared the contents of this news release.  Although the historic resource reported by Canarc in 1997 was prepared on the basis of over 200 drill holes and the historic data and technical procedures are considered to be valid, the Company has not yet done sufficient new work to verify the previous resource estimate and therefore this historic resource should not be relied upon.  It does however provide a reasonable indication of the property potential and a guide to further exploration and so is considered relevant.

Canarc Resource Corp. is a growth-oriented, gold exploration and mining company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF).  The Companyís principal assets are its 100% interest in the New Polaris gold deposit, British Columbia and its 80% option on the Benzdorp gold property in Suriname.  Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.

On Behalf of the Board of Directors
CANARC RESOURCE CORP.

/s/ Bradford J. Cooke

Bradford J. Cooke
President and C.E.O.

WARNING:  The TSX has neither approved nor disapproved the contents of this news release.  For more information, please contact Gregg Wilson at tel: Toll Free: (877)-684-9700, Phone: (604) 685-9700, fax:(604)685-9744, email invest@canarc.net or visit our website, www.canarc.net.

 

Table 1: C Vein Intersections in area to be infill drilled

Hole

Zone

Hole Depth (feet)

 

Length

Gold

 

 

From

To

ft

opt

P8918A

C Vein

637.9

654.5

16.6

1.10

P91C01

C Vein

902

923.7

21.5

0.59

P91C02

C Vein

864

879.6

15.6

0.75

P91C03

C Vein

869.4

884.4

15

0.02

P91C04

C Vein

927

947.3

20.3

0.14

P91C05

C Vein

514.2

554.8

40.6

0.30

P91C07

C Vein

958.2

965.7

7.5

0.55

P92C08

C Vein

407

417.8

10.8

0.26

P92C09

C Vein

610

617.58

7.58

0.00

P92C12

C Vein

848

870.3

22.3

0.44

P92C24

C Vein

447.9

457.3

9.4

0.69

P93C26

C Vein

354.4

364

9.6

0.78

P93C27

C Vein

488.5

497

8.5

0.37

P93C31

C Vein

606.3

613.5

7.2

0.23

P94C32

C Vein

699.9

708.5

8.6

0.00

P94C33

C Vein

874.1

884.3

10.2

0.20

P94C36

C Vein

857

860.5

3.5

0.19

P94C37

C Vein

837.4

857.2

19.8

0.65

PC25A

C Vein

450.5

462.6

12.1

0.17

PC9001

C Vein

677

701.4

24.4

0.34

PC9004

C Vein

725.9

739

13.1

0.47

P93C28

C Vein

460.2

467.3

7.1

0.31

P94C34

C Vein

579.8

591

11.2

0.21

05 5500E1

C Vein

609

627

18.3

0.35

05 5500 E2

C Vein

689

699.7

10.7

0.26

P91C06

C Vein

750.2

758.9

8.7

0.65

P92C13

C Vein

625.2

631.2

6

0.44

P92C14

C Vein

807.4

815.9

8.5

0.20

P92C15

C Vein

777.2

783

5.8

0.55

P92C17

C Vein

688

700.4

12.4

0.64

P92C18

C Vein

922.5

931.7

9.2

0.27

P92C19

C Vein

927.3

936.7

9.4

0.70

P92C20

C Vein

798.4

807

8.6

0.26

P92C20A

C Vein

764.7

773.7

9

0.37

P92C21

C Vein

564.8

584.2

19.4

0.55

P92C22

C Vein

1126.2

1134

7.8

0.06

P94C38

C Vein

900.7

916.1

15.4

0.67

P94C39

C Vein

859.6

874.6

15

0.84

PC9002

C Vein

909.8

918.5

8.7

0.86

PC9003

C Vein

745.3

764

18.7

0.91

PC9005

C Vein

621.5

626.5

5

0.55

PC9006

C Vein

805.2

811.2

6

0.10

PC9007

C Vein

527.9

532.5

4.6

0.44

PC9008

C Vein

941.5

950.5

9

0.04

05 2000SW4

C Vein

857

882.7

25.3

0.51

05 2000SW5

C Vein

791

809.5

18.5

0.63

05 2000SW6

C Vein

856

873

17

0.53

05 2000SW3

C Vein

701.9

732

30.1

0.29

05 2000SW4

C Vein

728

767

39

0.57

05 2000SW5

C Vein

757.5

808

50.5

0.25

04-2000SW1

C Vein

593

596.2

3.2

0.33

04-2000SW2

C Vein

677.6

685.5

7.9

0.43

04-2000SW3

C Vein

734.5

757

22.5

0.42

04-2100SW1

C Vein

565.5

572.5

7

1.03

04-2100SW2

C Vein

637.2

663.6

26.4

0.93

04-2200SW1

C Vein

587.6

634.6

47

0.34

04-2200SW2

C Vein

627.3

641

13.7

0.75

04-5600E1

C Vein

687.2

700.2

13

0.15

04-5600E2

C Vein

809.2

816

6.8

0.34

04-5700E1

C Vein

758.5

772.2

13.7

0.40

04-5700E2

C Vein

842

850

8

0.27

Table 2: Y Vein Intersections in area to be infill drilled

Hole

Zone

Hole Depth (feet)

 

Length

Gold

 

 

From

To

ft

opt

P91Y01

Y Vein

749.3

770.6

21.3

0.80

P91Y04B

Y Vein

1189.5

1199.7

10.2

0.61

P92Y08

Y Vein

988.7

1006.0

17.3

0.17

PC8906

Y Vein

225.0

235.5

10.5

0.79

PC8907

Y Vein

486.0

508.3

22.3

0.38

PC8916

Y Vein

512.2

524.9

12.7

0.31

 

 

 

 

 

 

 

 


Click for larger image
 
Click for larger image

Click for larger image
 
Click for larger image