Canarc Acquires the Strategic Lobo 3 Property near Zacatecas,
Mexico; Grants 50% Option to Mill City International Inc.
March 5, 1998
Vancouver, British Columbia, Canada, March 5, 1998....Canarc
Resource Corp. has acquired by staking a 100% interest in the Lobo
3 property, totalling 19,600 hectares, in San Luis Potosi State, Mexico.
The property (see attached
map) is located adjacent to the claims of Western Copper/Teck Corp.,
some 20 km northeast of their new discovery, within the Fresnillo silver
district in Zacatecas State.
Zacatecas is not only the location of a major new mineral find, the
Fresnillo area has produced more than 750 million oz. silver historically,
one of the largest silver mining camps in the world. Deposits here
typically contain several million tons grading 100 to 1000 gpt Ag, 1 to
5% Pb, 2 to 10% Zn, with copper and gold credits.
The silver deposits are almost always associated with younger, buried
Tertiary intrusions, whereas the massive sulfide deposits appear to be
related to an older Cretaceous volcanic belt. Just as the Western
Copper/Teck deposit was discovered by drilling a blind geophysical anomaly
underneath valley-fill pediment, so Canarc believes the potential to find
additional deposits on the Lobo 3 property by geophysical and drilling
methods is excellent.
The Lobo 3 property was staked to cover a high priority target area
based on a data compilation of two known mineral occurrences, favourable
Cretaceous rock formations, five aeromagnetic highs and three geochemical
silver anomalies. The prospects for Lobo 3 fall into two general
deposit types: Western Copper-type Cu-Zn-Pb-Ag-Au, volcanogenic massive
sulfide deposits and Fresnillo-type Ag-Pb-Zn-Cu sediment-hosted mantos,
skarns and veins.
Mill City International Inc. (MIY-VSE) has been granted an option to
earn a 50% interest in Lobo 3 by paying US$200,000, issuing 200,000 shares
and spending US$2,000,000 over a 2 year period. An additional 100,000
shares will be issued upon completion of a bankable feasibility study on
the project. Canarc, as operator, has proposed an exploration program
consisting of aeromagnetic surveying ground geophysics and diamond drilling
over the next several months.
Canarc has an agreement to sell the other 50% interest in Lobo 3 to
a subsidiary company focused on acquiring and developing silver projects
in the Americas. Canarc has also staked other properties in the Zacatecas
area and is now seeking partners for joint venture.
Godfrey Walton, Vice President of Exploration for Canarc, noted that,
"Our property portfolio in the Zacatecas area affords Canarc excellent
exposure to both a new discovery area as well as a prolific silver district.
Because we were able to compile a unique data set to evaluate targets for
staking, the Lobo 3 property has discrete prospects already identified
for immediate follow-up.
By securing a joint venture on this property, Canarc will also maintain
its low risk-low cost approach to new projects."
Canarc Resource Corp. is a growth-oriented, international gold exploration
mining company. 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.
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.
For further information, contact:
Manager of Investor Relations
Tel: (604) 685-9700