Canarc Resource Corp. (CCM:TSX and CRCUF:OTC-BB) announces that Glencairn Gold Corporation, the Operator of the Bellavista mine in Costa Rica, is on track to complete mine construction and commence gold production in Q2, 2005.
Mine and plant construction are now over 90% complete. All earthworks and leach pads are finished, the crushers, agglomerator, conveyors and stackers are in place, electrical power has been installed and all roadworks are nearing completion. Waste stripping and ore mining are now underway, loading of the leach pads will commence in Q1 and gold recovery will begin in Q2, 2005.
According to Glencairn, the Bellavista open pit, heap leach gold mine is expected to produce about 60,000 oz per year for 7 years( See Glencairn News Release April 1, 2004) at an average cash operating cost of US $198 per oz. (See www.glencairngold.com). Current ore reserves are estimated by Glencairn to be 11.2 million tonnes grading 1.54 grams per tonne gold, containing about 555,000 oz gold. Gold recoveries are anticipated to be around 78.6%.
Canarc owns a strategic net profit interest in Bellavista that pays Canarc 5.67%of net profits during the first payback period, rising to 10.40% during the second payback period and 20.24% of net profits thereafter. Canarc recently received its annual pre-production cash payment (US $120,000) from Glencairn in January.
At a US $425 gold price, Canarc’s net profit interest is expected to generate about US $4 million in undiscounted cash flow to Canarc over the 7 year minimum mine life. Canarc is currently considering how best to capture value from its interest in Bellavista, now that commercial production is set to commence.
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 in 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.