Positive Feasibility Study Recommends Commercial Gold Production at Bellavista; Low Cash Operating Costs of US$156 per ounce
Vancouver, British Columbia, Canada,
April 28, 1999
Canarc Resource Corp. is pleased to announce that a positive feasibility
study on the Bellavista Project in Costa Rica has been completed by partner
Wheaton River Minerals Ltd. Commercial gold production is recommended with
a low cash operating cost of US$156 per oz. gold.
Canarc owns an 18.3% carried interest in Bellavista, and receives annual
pre-production payments of US$117,750 from Wheaton River each January.
The study concludes that an average of 60,000 ounces of gold per year can
be produced using open pit, heap leach methods over a 7.3 year mine life.
Total life-of-mine production will be 436,000 ounces of gold.
At peak operation, the annual open pit mining rate will be 5,745 tonnes of
ore per day or 1.62 million tonnes per year on the basis of six operating
days per week. As previously reported, the proven and probable reserves on
the property are estimated at 11,239,661 tonnes grading 1.54 grams gold per
tonne. The strip ratio is 1.32:1.
Total cash costs including net-profit-interest royalties are estimated at
US$179 per ounce. Capital costs are estimated at US$28.3 million. At a
US$325 per ounce gold price, the pre-tax internal rate of return is 19%,
and the net present value is US$20.2 million at a discount rate of 5%.
Wheaton River is now in discussions with financial institutions regarding
debt financing for the Bellavista project.
Canarc Resource Corp. is a growth-oriented, international gold exploration
and mining company. Production increased 36% last year to 9500 oz. at the
Company's Sara Kreek (80%) mine . Reserves and resources now total 2
million oz. at the New Polaris (100%) and Bellavista (18%) projects. Our
large exploration portfolio includes joint ventures with Homestake and
Noranda. Major shareholders include Barrick Gold and Echo Bay Mines. The
Company's common shares trade under the symbol "CCM" on the Toronto Stock
For further information contact Robert Carriere, Investor Relations at (604) 685-9700 or visit our website: www.canarc.net.
ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.
Bradford J. Cooke
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