Bradford Cooke, President and CEO of Canarc Resource Corp. (CCM: TSX and CRCUF: OTC-BB), provides shareholders with the following review of the First Quarter of 2004 and the outlook for the Second Quarter.
Canarc raised CA $3.3 million in the Fourth Quarter of 2003 in order to advance our two principal gold projects, Benzdorp and New Polaris, in 2004. In January, the Company was able to announce positive drilling results from new discoveries on both properties. Gold entered its first correction of the current bull market in late January, although it rallied in late March to close flat on the Quarter at around US $420 per oz. Canarc shares also closed flat for the Quarter at CA $0.85.
The Phase 2 drilling program on the Benzdorp property in Suriname got underway in Q1 of 2004, although not without some “teething” problems. We successfully took apart the Longyear 38 drill rig and JD 450 bulldozer for transport by helicopter to the site and completely re-assembled them. However, we also had to expand the camp to 30 men, repair several equipment break-downs, replace tired drill crews, deal with broken ground conditions and unseasonally heavy rainfall.
Drill work is now running smoothly, three shallow saprolite holes and three 400 m deep bedrock drill holes were completed in March and April and assays are anticipated in May. A total of 20 deep holes are planned in Phase 2 in order to estimate an initial mineral resource for the JQA discovery.
The JQA discovery area to date encompasses an area 600m by 500m within which all 12 holes drilled last year returned economically significant gold-copper mineralization from top to bottom, averaging 0.6 gpt gold from surface to 75 m depths. The discovery area is still open for expansion in several directions as well as at depth. If the mineralization is continuous to a 300m depth, JQA would contain more than 4 million oz. gold and 500 million lb copper, an attractive target for drilling in 2004.
Although still in the very early stages of exploration drilling, Benzdorp appears to have some strong geological similarities to the Boddington gold-copper porphyry deposit in Western Australia. The Boddington gold mine is one of the largest gold deposits in the world, with combined past production and current resources exceeding 26 million oz. gold.
Newmont/Anglo/Newcrest have announced a $500 million development program to build a 170,000 tpd, 750,000 opy gold and copper mine at Boddington. Current reserves are estimated to be approximately 400 million tonnes grading 0.8 gpt gold and 0.12% copper.
Work continued on a scoping study of the 1.3 million oz (Not NI43-101 Compliant), high grade New Polaris gold deposit in British Columbia, with emphasis on detailed modelling of an initial 650,000 oz. resource compliable with NI 43-101 and suitable for a conceptual mine plan. Metallurgical testing continued in an effort to optimize gold recoveries in pressure leach and bacterial leach circuits.
Glencairn Gold Corp. is currently constructing a 70,000 oz./ year open pit, heap leach gold mine at Bellavista. Canarc retains an 18.3% net profit interest (after payback) in the mine and received its US$ 117,750 annual pre-production cash payment in January.
Canarc owns a minority shareholding and helps manage the affairs of Endeavour Gold Corp. In January, Endeavour announced the acquisition of the operating Santa Cruz silver mine and Guanacevi mill in Durango, Mexico. Their share price tripled and Canarc participated in the recently closed CA$ 9.9 million private placement financing for Endeavour. An aggressive drill exploration and underground development will get underway at the mine during the Second Quarter of 2004.
It is with great sadness, that Canarc announces that Stephen Peck, Director, has passed away. Stephen was an active contributor at the Board level and brought to Canarc a depth of experience and enthusiasm for it’s business and the public markets that will be difficult to replace. We shall miss him.
Looking forward to the Second Quarter of 2004, Canarc plans to complete 20 deep drill holes at Benzdorp in order to make an initial resource estimate. Resource modelling and metallurgical testing at New Polaris should also be completed during this period. The outlook for gold in Q2 of 2004 is a continuation of the normal correction now underway in what is still very much a long-term bull market. However, positive deep drilling results from the Benzdorp project could have a profound impact on the shares going forward.
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.