Sara Kreek Mine Sets Production Record in 1997
January 22, 1998
Vancouver, British Columbia, Canada, January 22, 1998....Canarc
Resource Corp. is pleased to announce that the Sara Kreek Surface Mine
in Suriname set a new gold production record in 1997. Raw gold production
totalled 6,993 oz. (217 kg.), a 307% increase over the 2280 oz. (71 kg.)
produced in 1996.
Cash costs of gold production are estimated to be in the low US$200's
per oz. due to the steadily increasing production. Most 1997 net
revenues were reinvested into purchasing additional heavy equipment to
expand operations at the minesite. At current gold prices, the mine
will continue to be profitable so long as production exceeds 20 kg. per
month. Our production target for 1998 is 26 kg. per month , or 10,000
oz. for the year. Full capacity is anticipated to eventually reach
40 kg. per month or 15,000 oz. per year.
Sara Kreek is a small surface placer mine operated by Canarc's
partner, Suriname Wylap Development Co., and produces gold nuggets and
dust by sluicing of alluvial gravels from several creeks on the property.
Sara Kreek is one of the largest gold districts in Suriname, having produced
over 500,000 oz. gold historically. No formal gold reserves have
been estimated for the Sara Kreek Gold Mine. However, systematic
pitting and panning of the gold bearing creeks indicate the possibility
of many years of production at current rates.
Canarc owns a 50% interest in the Sara Kreek Surface Mine (80%
until payback of a project loan) and an 80% interest in the non-surface
mineral rights. Previous exploration work by Canarc has identified
four main gold prospects within a 50 sq.km. area.
High grade shear zones and bulk tonnage porphyry targets have
returned significant trench and drill intersections in saprolite over several
kilometres of strike length, including 13.6 gpt over 10m, 2.3 gpt over
40m, 7.0 gpt over 13.5m, 2.9 gpt over 16.6m and 5.9 gpt over 10.7m.
Canarc is now seeking a joint venture partner to continue the exploration
and development of the saprolite and bedrock gold potential at Sara Kreek.
Canarc Resource Corp. is a growth-oriented, international gold
exploration and mining company with active projects worldwide. Major shareholders
include Barrick Gold Corp. and Echo Bay Mines Ltd. The Company's common
shares trade under the symbol "CCM" on the Toronto Stock Exchange as well
as on the following exchanges: Vancouver: Vista-CCM, Frankfurt: Third Market
Segment-CAN, Berlin: Over the Counter-CAN, NASD: Electronic Bulletin Board-CRCUF.
For further information, contact:
Manager of Investor Relations
Tel: (604) 685-9700