Canarc Resource Corp. (CCM: TSX and CRCUF: OTC-BB) announces the subscription of a CA $487,500 non-brokered private placement for 750,000 flow-through common shares at CA $0.65 per share. The proceeds will be used to complete the Phase 1 in-fill drilling program this year at the New Polaris property in northwest British Columbia.
A conference call for investors will be held on Thursday, October 14, 2004 at 1:15 PM Pacific time to discuss in more detail these new developments. Canarc owns a 100% interest (subject to a 10% net profit royalty) in the New Polaris property, a high grade, underground mine, that produced 238,000 oz gold between 1939 and 1951.
In addition to the recent Benzdorp gold discovery in Suriname, the New Polaris gold deposit is considered a key asset of the Company. From 1988 to 1997, the Company invested more than CA $16 million drilling 144,000 feet of core in 202 drill holes to outline a 1.3 million oz (Not NI43-101 Compliant) inferred resource (3.6 million tons at 0.36 opt, not compliant with the new Canadian policy NI 43-101) at New Polaris.
The Phase 1 in-fill drilling program will commence immediately and consists of 9,000 feet of core drilling in 10 drill holes at 100 foot centres in the C veins. Even though it is late in the year, Canarc has a fully winterized 50-man camp and all-weather airstrip at the mine-site. Mobilizing the Phase 1 drilling program now will give management the flexibility to continue with a Phase 2 in-fill drilling program in Q1, 2005 subject to financing.
Previous drilling in the C veins included numerous intercepts of both high grades (e.g. 1.10 opt over 16.6 feet in hole PC 89-18A) and broad widths (e.g. 0.42 opt over 112.2 feet (true width 56 feet) in hole PT97-44). Although the in-fill drilling program will focus on blocking out proven and probable reserves in the top 1,200 feet of the C veins, previous drill holes (not included in the previous resource estimate) returned consistently high gold grades over mineable widths down to 2,200 feet, still open at depth.
Canarc now plans to move ahead with a more aggressive development program at New Polaris as part of management's focus to accelerate growth in shareholder value. The goals of the development program will be to complete the in-fill drilling and a feasibility study. To assess the potential for a 65,000 oz per year to 100,000 oz. per year high grade, underground gold mine.
The Company's plans to accelerate work at New Polaris are well timed because a large base metal mine is now being evaluated for development immediately adjacent to the New Polaris property. Redcorp Ventures Ltd. owns the Tulsequah Chief copper-zinc-silver-gold deposit located only 3 km away from the New Polaris property.
Redcorp is currently completing a large in-fill drilling program this year in order to update their previous 1997 reserve estimate and feasibility study by Q1, 2005. Redcorp then intends to seek project financing to start construction of the access road and its 2500 tpd mine and mill.
The fact that Redcorp already received their final BC government approval (Project Approval Certificate) in 2002 to build the 2500 tpd Tulsequah Chief underground mine and 165 km access road bodes well for the future permitting of Canarc's New Polaris gold mine project.
Canarc will be hosting a conference call for investors on Thursday, October 14 at 1:15 PM Pacific time to provide more details on these new developments. To access the conference call:
- In the greater Toronto area call 1-416-695-5259;
- For all other participants call 1-888-789-0089
Give the operator the following information:
- Canarc Resource Corp. Conference Call
- Speaker: Brad Cooke
- Reservation Number: T526077C
The private placement shares are subject to a four-month regulatory hold period. Canarc will pay an 8% finders fee in common shares upon closing of the flow-through private placement.
On Behalf of the Board of Directors
CANARC RESOURCE CORP.
/s/ “Bradford J. Cooke”
Bradford J. Cooke
President and C.E.O.
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.
For more information, please contact Gregg Wilson at tel: (604) 685-9700, 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.