Holes BZ03-18 to 21 each intersected porphyry-type, stockwork mineralization in a fence along Line 20,400 west of holes BZ03-3, 4 and 5, extending the width of the mineralized zone to 600m, still open to the east and west. Drill holes BZ03-22 and 23 did not intersect mineralization on Line 20,800 to the north. The mineralized zone appears to trend west of these two drill holes beneath Pointu Kreek.
Core recoveries in holes BZ03-18 to 23 averaged only 76% and bedrock was not reached in holes BZ03-19 and 21, due to difficult ground conditions. Cores losses in the mineralization imply gold losses as well, so the assays reported herein may understate the actual gold grades in saprolite.
A review of gold-rich porphyry deposits worldwide shows that Benzdorp gold grades fall into the top 25% of this ore type. A geologically analogous porphyry deposit to Benzdorp is the Boddington project of Newmont/ Anglo/ Newcrest in Western Australia. The Boddington gold mine is one of the largest gold deposits in the world, with combined past production and current resources exceeding 26 million oz gold.
Boddington is a structurally controlled, intrusion related gold-copper deposit of Archean age. Much of the oxide cap has already been mined, but the underlying hypogene mineralization can be found for several kilometres in length by up to1 km in width by several hundred metres in depth.
Newmont/ Anglo/ Newcrest have announced a $500 million development program to build a 170,000 tpd, 750,000 opy gold and copper mine at Boddington. Current reserves are estimated to be approximately 400 million tonnes grading 0.8 gpt gold and 0.12% copper. Although still in the very early stages of exploration drilling, Benzdorp certainly appears to have similar one tonnage potential.
Phase 1 drilling will resume at the Benzdorp property in late November, 2003. Approximately 10 more holes will be drilled before year-end using the small Hydracore drill rig to try and extend the JQA mineralization to the east, as well as to test the Roche Kreek prospect to the south.
Godfrey Walton, M.Sc., P.Geo, is the Qualified Person supervising the Phase 1 drilling program on the Benzdorp property. He has instituted a Quality Control program of blanks and duplicates to ensure the integrity of all assay results.
All drill core is split by Canarc personnel at the Benzdorp camp, and then flown to Parimaribo for shipment to FILAB, a large, European commercial lab company operating in Cayenne, French Guyana. The core samples are then dried, crushed, split and a 30-gram subsample is taken for analysis. Gold is determined by fire assay with an atomic absorption finish and copper is analyzed by inductively coupled plasma spectroscopy. FILAB is using its own standards for quality control checks. Canarc will also be sending reject samples from FILAB to other laboratories for additional quality assurance checks.
Canarc owns 40% and holds an option to earn up to 80% of the voting shares of Benzdorp Gold N.V., the local company that holds the Benzdorp concession titles. Our partner, Grassalco, a state mining company, will ultimately own 20% of the voting shares which gives it the right to receive either a floating net revenue interest (NSR) of 1.5% to 6% based on the price of gold or a 20% net profits interest (NPI) after Canarc recovers all of its capital investment with interest.
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 Company’s principal assets are its 100% interest in the 1.3 million oz. (Not NI43-101 Compliant) New Polaris gold deposit located in northwestern British Columbia and its option on the huge Benzdorp gold property in Suriname. Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.