Bradford Cooke, President and CEO of Canarc Resource Corp. (“Canarc”), provides shareholders with the following review of the Second Quarter and the outlook for the Third Quarter of fiscal 2003.
Over the past three months, substantial progress was achieved on both the Benzdorp and New Polaris gold projects:
1) Two large new gold anomalies were defined by geochemical sampling on the Benzdorp property in Suriname. The JQW anomaly lies immediately west of the main JQA prospect and assayed up to 12.8 gpt gold in soils and up to 44.4 gpt gold over 2 m in saprolite along Pointu Kreek. This target appears to be a higher grade, vein-type prospect. The Roche Kreek anomaly is located 4 km south of JQA and assays up to 0.8 gpt gold in soils. This target is likely another large, lower grade porphyry-style prospect similar to JQA.
2) The Benzdorp property concessions were formally transferred to Canarc’s subsidiary, Benzdorp Gold N.V., bringing a successful conclusion to six years of effort to finalize our mineral titles.
3) A Phase 1 drilling program got underway at Benzdorp to test the gold mineralization in five prospect areas: JQA, JQW, JQS, Pointu Kreek and Roche Kreek. An estimated 3,000 m of core drilling is planned in about 30 holes over the next two months.
4) Engineering and resource studies also commenced on the New Polaris project in British Columbia. Mr. Bruce Bried, P.Eng., was retained to complete the conceptual engineering and costing work necessary for a scoping study. Roscoe Postle Associates Ltd. are working on a revised resource estimate compliant with National Policy 43-101 that is suitable for the scoping study.
Canarc’s share price once again reflected the volatility in gold during the quarter. The gold price bounced from a low of US $322 per oz. to a high of US $372, settling in the US $345 range at the end of June, 2003. Canarc’s share price also rose from a low of CA $0.36 to a high of CA $0.68, closing the quarter in the CA $0.60 range.
The outlook for the Third Quarter is equally bright as work continues on both Benzdorp and New Polaris:
1) The Phase 1 drilling program at Benzdorp should be completed during the Third Quarter and if positive results are achieved similar to those already generated by trenching, then Benzdorp could become the next major new discovery for Canarc.
2) The scoping study should also be finished over the summer recommending how best to proceed with development of New Polaris.
We are all looking forward to the next three months.
ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.
C/s “Bradford J. Cooke”
Bradford J. Cooke
President and CEO
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For more information, please contact Gregg Wilson at tel: (604) 685-9700, fax: (604) 685-9744, email firstname.lastname@example.org or visit our website, www.canarc.net. The TSX Exchange has neither approved nor disapproved the contents of this news release.