Bradford J. Cooke, President and CEO of Canarc Resource Corp. (CCM: TSX and CRCUF: OTC-BB) provides shareholders with the following review of the Second Quarter, 2004 and the outlook for the Third Quarter.
Canarc remained focused on the Phase 2 deep drilling program on the Benzdorp property during Q2, 2004. By June, the company was able to announce that the first deep drill hole BZ04-42 into the JQA prospect successfully intersected porphyry gold-copper mineralization from top to bottom, 400 m deep.
Gold fell 12% during the quarter from US $420 down to US $375 but then rebounded to close Q2 around US $400 per oz. Canarc shares remained steady, rising 6% from CA $0.85 per share to CA $0.90 notwithstanding the correction in gold and other gold stocks.
The Phase 2 deep drilling program is now well underway with very positive results. The first deep drill hole BZ04-42 intersected 400.81 m grading 0.48 gpt gold, including the top 120.40 m returning a higher grade of 1.14 gpt gold. An additional four deep drill holes were completed to the end of Q2 and they confirmed the continuity of the porphyry gold-copper mineralization to 300 m depths over a 300 m width, still open to the west.
One geologic model for JQA is the Boddington mine currently being developed by Anglogold/ Newmont/ Newcrest in Western Australia. This 10 million oz gold-copper mine is currently the subject of a US $500 million development program to produce 750,000 opy gold from a 400 million tonne ore body grading 0.8 gpt gold and 0.12% copper.
However, the mine model for JQA may more appropriately be the operating Paracatu (Brazilia) mine of RTZ/ Kinross in Brazil. This 5 million oz gold mine produces 180,000 oz per year from a 350 million tonne ore body at a remarkably low grade of 0.45 gpt gold. The keys to profitability at Paracatu lie in their low operating costs due to no need for stripping or drilling and blasting. Since the top 50 to 100 m at JQA is soft saprolite ore that does not require stripping, drilling or blasting, it also has the potential for very low operating costs.
Work continued on metallurgical testing and resource modelling on the wholly owned 1.3 million oz. (Not NI43-101 Compliant) New Polaris gold deposit in northwestern BC. Construction of a 70,000 oz per year gold mine by partner Glencairn Gold Corp. is well underway at the Bellavista Project in Costa Rica.
Canarc maintained its minority shareholding in affiliate, Endeavour Gold Corp. by participating in their recent CA $9.9 million private placement financing. Endeavour subsequently finalized the formal option agreements to purchase the operating Santa Cruz silver mine and Guanacevi processing plant.
Looking forward to the Third Quarter of 2004, Canarc plans to continue with the Phase 2 deep drilling program at Benzdorp in order to make an initial resource estimate. The outlook for gold is improving once again and we would not be surprised to see gold test the recent US $428 high before year-end.
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.