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

Overview

Canarc Resource Corp. (CCM: TSX, CRCUF: OTC-BB, CAN: Frankfurt) is a growth-oriented gold exploration and mining company focused on the discovery and development of gold deposits in North America.  Catalysts for growth in 2011 include securing a financial or industry partner to commence mine development at Canarc’s main asset, the 1.1 million oz high-grade New Polaris gold mine project in north-western BC; and exploring the prospective Windfall Hills and three other gold properties in central BC.

INVESTOR INFORMATION

Stock Exchange   TSX: CCM, OTC:BB: CRCUF, Frankfurt: CAN
Shares Issued  90.4 million
Closely Held 20.0 million
Warrants and Options 16.6 million
Fully Diluted 107.0 million
Share Price CA $0.15 - 0.17

GOLD PROJECTS

New Polaris - Canarc’s core asset is the 100% owned, past-producing, high-grade New Polaris gold mine project located in north-western British Columbia. Based on an updated NI 43-101 resource estimate using a 6 gpt gold cutoff grade, the property currently contains measured and indicated resources of 519,000 oz gold contained in 1,288,000 tonnes grading 12.5 gpt gold and inferred resources totaling 636,000 oz gold contained in 1,628,000 tonnes grading 12.2 gpt gold, still open for expansion in other veins and at depth.  Drill results from the 2006 exploration program include 44.7 gpt over 6.2 m (1.30 opt over 20.3 ft) and 23.1 gpt over 16.5 m (0.67 opt over 54.1 ft). 

Using base case parameters of a US$1200 gold price, 1.00 $CA/$US exchange rate, US$100 million capital costs and US$481 per oz cash cost, the preliminary economic assessment generates a pre-tax undiscounted life-of-mine cash flow totaling CA$280 million with a 38.1% IRR and a 2.4 year pay-back period.  Discounted at 5%, the after-tax Net Present Value (“NPV”) is CA$129.8 million with an after-tax IRR of 31.4.8% and a 2.7 year pay-back period.  Canarc is now seeking a partner to complete pre-production mine development, pursue a feasibility study, government permitting, and project construction to achieve production within three years.

Windfall Hills - Canarc’s latest acquisition is located 65 kilometers (km) south of Burns Lake and 90 km northwest of Richfield Ventures’ Blackwater gold discovery in central BC. The Windfall Hills gold project consist of claims totalling 3879 hectares situated within the same geological belt of Tertiary volcanic rocks as Richfield’s Blackwater gold discovery.  Gold mineralization is associated with quartz stock-works and alteration zones of silica, pyrite, K-feldspar, sericite and clay within rhyolite to dacite volcanic flows, breccias, tuffs, sediments and hypabyssal intrusions of the Ootsa Lake Group.

During the 1980’s and 1990’s, various junior exploration companies carried out more detailed geological, geochemical and geophysical surveys to define a broad, northeast-trending anomalous zone 2 km long by 1 km wide, marked by elevated gold and multi-element soil geochemistry, and several conductive or resistive IP geophysical targets.  Atna Resources proposed a diamond drill program in 1997 to test the IP targets but never carried it out.  Canarc has also staked the 960 hectare Windfall East property 20km east of the Windfall Hills properties as well as both the 13,870 hectare “Devil’s Thumb” and 2,345 hectare Devil East properties northeast of the Windfall Hills properties. These properties targeted geochemical anomalies within the favorable Ootsa Lake Group rhyolitic volcanic rocks where they are cut by northeast and northwest-trending structures, similar to the Blackwater-Davidson gold discovery.  All of these properties are accessible via gravel logging roads so exploration should be rapid and cost-effective.

MANAGEMENT AND DIRECTORS

Bradford Cooke, M.Sc, P.Geo., Chairman and CEO, is a professional geologist with 32 years experience in project management and financing, including Shell, Chevron, Noranda, Endeavour.

Garry Biles, P. Eng., President and COO, is a professional engineer with 34 years experience, most recently as the General Manager of the Bellavista gold mine for Glencairn Gold.

James Moors, B.Sc., P.Geo., VP Exploration is a professional geologist with 20 years experience exploring ore deposits for Homestake and others.

Philip Yee, M.Eng (Mining), MBA, CPA, VP Finance and CFO, is a professional accountant with over 15 years experience as Controller and Officer of public companies.

Gregg Wilson, M.Sc., Vice President, Investor Relations - is an investor relations professional with over 15 years experience and an extensive background in administration and management.

Leonard Harris, P.Eng., Director, is a retired metallurgical engineer who was President of Newmont Peru responsible for the development of the huge Yanacocha mine.

William Price, Director, is the retired Chief Investment Officer for Allianz Global Investors, one of the largest global investment fund companies with over US$500 billion under management.

Bruce Bried, P.Eng., Director, is a professional engineer with 32 years experience operating high grade, underground gold-silver mines, including Homestake and Dickenson Mines.

CONTACT INFORMATION

Head Office: Gregg Wilson, Investor Relations
Suite 301-700 West Pender Street, Vancouver, B.C., Canada, V6C 1G8
Tel: (604) 685-9700 Fax: (604) 685-9744 Toll Free: 1-877-684-9700
E-mail: info@canarc.net          Website: www.canarc.net
   
Legal Counsel: Stewart Lockwood, Vector Corporate Finance Lawyers
Auditors: Smythe Ratcliffe LLP
Bankers: Royal Bank of Canada
Transfer Agent: Computershare Investor Services Inc.