1997 Drilling on GNC Property Intersects Anomalous Metal Values
Along Strike From Eskay Creek Mine, Further Drilling Proposed in 1998
February 5, 1998
Vancouver, British Columbia, Canada, February 5, 1998....Canarc
Resource Corp. is pleased to announce that drilling by Prime Resources
Group Inc. on the GNC property in 1997 has intersected anomalous metal
values within the same rock formations that host the Eskay Creek Mine,
which is located approximately 3.5 km along strike to the northeast.
The GNC property (930 hectares) is owned by Prime (66 2/3%) and Canarc
(33 1/3%) and adjoins Prime�s Eskay Creek Mine in northwestern British
Columbia. Canarc�s one third interest is carried whereby Prime must incur
all expenditures to production.
Drill hole GNC 97-30X (1,006 m) is a 243 m deep estension of hole GNC
92-30 (763 m), which for technical reasons did not reach the favourable
Eskay Creek Mine stratigraphy.
Hole GNC 97-30X returned anomalous metal values within the favourable
Eskay Creek ore horizon, hanging wall mudstones and andesites and footwall
rhyolites, including individual and separate 1 m intervals assaying up
to 0.66% Zn, 0.37% Cu, 6 gpt Ag and 63 ppb Au. These assay values indicate
that a hydrothermal system was active in the vicinity of this drill hole.
The Eskay Creek ore horizon, where intersected by hole GNC 97-30X, is
3.3 m thick and contains 30% semi-massive sulfides, principally pyrite,
and pervasive carbonate alteration. Underlying this zone, the footwall
rhyolite breccias are altered to chlorite and sericite, followed by a thick,
sericite-altered autobrecciated rhyolite sequence, further evidence that
a strong hydrothermal system was present in these rocks.
The Eskay Creek Mine is one of the highest grade volcanogenic massive
sulfide deposits in the world, with ore reserves prior to the commencement
of production in 1995 estimated at 1.1 million tonnes grading 65.5 gpt
gold, 2,933 gpt silver, 5.6% zinc, 2.9% lead and 0.8% copper. This represented
2.3 million oz. gold and 102 million oz. silver at a gold equivalent grade
of 3.3 oz. per ton. Production for 1997 is projected at 400,000 oz. gold
equivalent at a cash cost of US$160 per oz.(est.) or 17 million oz. silver
equivalent at a cash cost of US$3.70 per oz.(est.).
Prime Resources has proposed a deep drilling program in 1998 in the
area of hole GNC 97-30X to test the potential for Eskay Creek-type massive
sulfide mineralization on the GNC property. Results should be available
by the end of the third quarter.
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