Shareholder Update: Third Quarter 2002, Oct 15, 2002
Canarc Resource Corp.
Third Quarter Review 2002
Vancouver, British Columbia, Canada, October 15, 2002
Bradford Cooke, President and CEO of Canarc Resource Corp. provides shareholders with this review of the Third Quarter, 2002 and our plans for the Fourth Quarter.
The most important development for Canarc over the past three months was the signing of an Amending Agreement with Grassalco to finally resolve all the outstanding issues regarding the Benzdorp property in Suriname. As a result, the Company closed a CA $500,000 private placement financing to facilitate the next phase of fieldwork at Benzdorp.
An aggressive machine trenching program of two dozen or more deep trenches is now underway to better define the JQA prospect for drilling, and to determine if it links up with other similar mineralized zones. The target size here could be anywhere from two to 20 million oz. gold due to the porphyry-style of mineralization.
For the first time in five years, Canarc commenced additional work on its main asset, the New Polaris gold project in northwestern B.C. A 125 kg bulk sample was collected from the underground workings in order to facilitate new metallurgical test work aimed at optimizing the project economies at New Polaris.
Canarc's share price ranged from CA $0.29 to $0.60 during the quarter and closed at $0.45, generally tracking the volatility in the gold price. Gold dropped briefly to a low of US $298 during the summer correction before bouncing up as high as $326, before closing the quarter in the low $320's range.
Management believes the first correction of the new bull market for gold is now complete, and a second up leg of the gold cycle is getting underway. Canarc is very well positioned to participate in this new gold cycle because our patience with Benzdorp has finally paid off. Given that our market capitalization only values the 1.3 million oz. (Not NI43-101 Compliant) New Polaris resource at US $10 per oz., the potential upside of Benzdorp is essentially free at current share prices.
Our goals for the Fourth Quarter will be to complete the trenching program at Benzdorp (final assays in January) and the metallurgical program at New Polaris. Canarc should then be ready to aggressively drill Benzdorp and complete a new scoping study on New Polaris in 2003.
ON BEHALF OF THE BOARD OF DIRECTORS