Canarc Resource Corp. (CCM:TSX and CRCUF:OTC-BB) announces multiple high grade gold intercepts from the recently completed Phase 1 in-fill drilling program on the New Polaris property in northwestern British Columbia.
Eleven holes (for a total of 8008 ft or 2441 m of core) were drilled in late 2004 on 100 ft (30 m) spacings to test the C Zones over an initial 500 ft (152 m) strike length by 200 ft (61 m) down dip below the deepest mine level. All eleven drill holes intersected economically significant gold grades and vein widths in two main, sub-parallel, en-echelon, shear-veins, the “Upper C” and “Lower C”.
Individual drill intercepts returned assays such as 0.93 opt (31.9 gpt) gold over 26.4 ft (8.05m) in the lower C vein and 0.45 opt (15.3 gpt) over 29.5 ft (9.0 m) in the Upper C vein. The weighted average of all 22 vein intercepts graded 0.42 opt (14.4 gpt) over a 12.4 ft (3.78m) core length. True widths of the veins are estimated to be 85 to 90% of the core lengths. Assay results are shown in the attached table.
These first eleven in-fill drill holes tested the Upper and Lower C zones below the No.600 mine level, (ASL -450 ft) near the No.1 fault, a late brittle fault which bisects the C zones into east and west segments. As can be seen on the attached longitudinal sections, the C zones are rotated about 35° around the No.1 fault, necessitating two drill grids and two looking directions on the longitudinal sections.
The C zones were originally delineated in the 1990’s by more open spaced drilling over an 800 ft (244 m) strike length and down to 2340 ft (713 m) in vertical depth, where drill hole PC95-40 intersected 0.33 opt (11.3 gpt) gold over a 27.8 ft (8.47 m) core length. The C zones are still wide open at depth and to a certain extent along strike.
A Phase 2 in-fill drilling program is now being planned for 2005 (subject to financing) to continue defining and extending the known C zones at 100 ft intervals over a 1000 foot (305 m) strike length and 1200 feet (366 m) down-dip. It will also target two of the known Y zones over a 500 ft (152 m) length and 1200 feet (366 m) down dip.
The purpose of this drilling program is to outline at least a 550,000 oz resource amenable to a feasibility study for a 65,000 oz per yr high grade, underground gold mine with a minimum 8-year mine-life. New Polaris was previously estimated (in 1998) by Peter Karelse, P.Geo., to contain a 1.3 million oz gold resource (3.6 million tons grading 0.36 opt gold) based on 202 drill holes. This resource estimate precedes NI 43-101 and is therefore not compliant with it and should not be relied upon. The deposit is still open for expansion.
Bradford Cooke, Canarc’s President and C.E.O., stated “These multiple high grade drill intercepts confirm our long held opinion that New Polaris has the potential to be western Canada’s next high grade, underground gold mine. Our re-activation of the New Polaris project coincides not only with higher gold prices but also with the pending development of the large Tulsequah Chief copper-zinc-gold-silver mine and road access of Redcorp Ventures, immediately adjacent to the New Polaris property.”
James Moors, B.Sc., P.Geo, is the Qualified Person who supervised the 2004 drilling program on the New Polaris property. He has instituted a Quality Control sampling program of blanks to ensure the integrity of all assay results. All drill core was split by Canarc personnel at the New Polaris camp, and then flown to Vancouver for assay by ALS Chemex. The core samples were dried, crushed, split and a 30-gram subsample was taken for analysis. Gold content was determined by fire assay with an atomic absorption finish (FA-AA) and other trace elements were analyzed by atomic absorption. ALS Chemex also uses its own standards for quality control checks.
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 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.
Bradford J. Cooke President and C.E.O.
For more information, please contact Gregg Wilson at tel: (604) 685-9700, Toll Free: 1-877-684-9700 fax: (604) 685-9744, email [email protected] or visit our website, www.canarc.net. The TSX Exchange has neither approved nor disapproved the contents of this news release.