British Columbia Gold
mexico silver
Costa Rica Gold
Suriname Project

corporate profile
management team
financial statements
news releases

research reports
request information
gold investments
< Previous   Next >

Trading Symbol  TSE:CCM

Additional Gold Mineralization Delineated by Underground Drilling and Sampling, Comprehensive Feasibility Program Continues to Advance New Polaris Property

Vancouver, British Columbia, Canada,
May 14, 1997

Vancouver, British Columbia, Canada, May 14, 1997.....Canarc Resource Corp. has delineated additional gold mineralization at the New Polaris project in Northwestern British Columbia by underground drilling and sampling.

Drilling on the AJ level intersected ore grades over mineable widths in the AB and Y gold zones that were either neglected or not previously known by the old-time miners. Highlights include 0.40 oz./ton over 7.8 feet and 0.34 oz./ton over 16.0 feet in hole PT97-13, 0.23 oz./ton over 10.0 feet and 0.23 oz./ton over 15.0 feet in PT97-18 and 0.80 oz./ton over 5.0 feet in PT97-30.

The more significant drill intercepts are shown below:

Hole (no.) From (ft.) To (ft.) Core Length (ft.) Gold Grade (oz./ton)
PT97-13 199.1 206.9 7.8 0.40
228.7 244.7 16.0 0.34
787.6 792.6 5.0 0.36
837.6 842.9 5.3 0.24
16 34.6 44.6 10.0 0.23
312.0 327.0 15.0 0.23
incl 322.0 327.0 5.0 0.37
18 17.8 27.8 10.0 0.28
inc. 17.8 22.8 5.0 0.42
23A 86.3 90.0 3.7 0.40
26 234.8 239.6 4.8 0.35
29A 758.8 761.2 2.4 0.63
982.6 993.5 10.9 0.20
incl 982.6 985.6 3.0 0.40
30 333.4 338.4 5.0 0.20
891.4 896.4 5.0 0.80

All drill holes intersected additional, lower grade gold zones, typically 5 to 15 feet wide grading 0.10 to 0.20 oz./ton gold. True widths average 70% of intersected core lengths.

Canarc has now completed 27,356 feet of diamond drilling in 56 holes underground at New Polaris since the commencement of the feasibility program late last year. These holes all targetted gold zones within the mine workings that were not part of the previous geological resource estimate. Canarc recently announced a 10% increase in contained gold resources to 1.6 million oz. gold based on 37 of the new drill holes.

An additional 80,000 feet of infill drilling should be completed in 1997 in order to delineate minable reserves for the feasibility study.

Canarc has also completed underground sampling and mapping on the AJ level to support the ore reserve calculations. Continuous chip samples were collected at 5 foot intervals along the walls or "ribs" of the AJ level where gold mineralization was partially exposed. No true widths can be reported because the drifts were developed on the gold zones, which are typically wider than the drifts themselves. These results serve as additional confirmation that significant gold zones of economic grade remain within the mine workings, as follows:
Mine Level Zone Type Drift Length (ft.) Gold Grade (oz./ton)
AJ Y? 26.0 0.24
62.0 0.29
32.0 0.46
C? 11.0 0.53
10.0 0.37
21.0 0.43
A 16.0 0.36
71.0 0.41
15.0 0.22

Mapping and sampling continues on the Polaris level and the 150, 300, 450 and 600 levels will also be completed this year.

Steffen, Robertson, and Kirsten (Vancouver) have been retained to complete an auditable mineral resource estimate for New Polaris. A computer data base of all exploration diamond drilling (approximately 250,000 feet), assays, collar surveys, down the hole surveys, and lithologies has been completed by Canarc geologists using GEMCOM software. All existing underground development and production workings have been digitized using AUTOCAD software and improted into GEMCOM. Steffen, Robertson, and Kirsten will complete the mineral resource estimate using geostatistical analysis with GEMCOM software.

Dewatering and rehabilitation of the mine workings at New Polaris is proceeding ahead of schedule. Dewatering is now completed to 110 feet below the 300 level. Dewatering of all the mine workings will be complete in June. Ground conditions encountered to date have been excellent, and the A.J., Polaris, 150 and 300 levels have all been re-accessed. Only the 450 and 600 levels remain to be rehabilitated, once they are accessible after dewatering. A U-500 Alimak has been set up in one shaft compartment for man travel, and a winch system has been set up in the second shaft compartment for movement of material and equipment.

A wide range of technical and environmental scoping studies are being completed to evaluate various options for New Polaris Gold Mines. These activities include environmental analysis, deposit modelling, resource estimates, mine design, mineralogy, metallurgy and site facilities and infrastructure planning.

Gartner Lee Limited (Vancouver, Whitehorse) has been retained to provide ongoing environmental and technical assistance for the project. Ground water monitoring wells and surface hydrology stations have been installed to characterize environmental conditions at the site and environmental baseline data acquisition is underway as part of the B.C. Environmental Assessment Process. Acid base account sampling of waste rock at New Polaris indicates that waste material produced during mining activities will be non-acid generating.

Canarc is committed to clean up and reclamation of the New Polaris site, which has been impacted by mining activities carried out by other mining comparies at the site between the 1920 s and 1950 s. This clean up has included removal of old mine buildings, removal of underground fuel tanks, clean up of diesel fuel found dumped into underground workings, and disposal of old equipment and scrap at the site. Based on current environmental work, Canarc believes that New Polaris Gold Mines Ltd. can be developed with no significant environmental impacts and no long term environmental liabilities.

An excellent relationship has been established between Canarc and the Taku River Tlingit with regard to advancing New Polaris. Canarc is committed to working closely with the Tlingit in protecting the environment and minimizing socio-economic impacts that the mine development may have on the First Nation s people.

Rescan Engineering (Vancouver) has been retained to oversee detailed metallurgical test work on New Polaris ore. Planned test work will evaluate optimization of a flotation concentrate for direct marketing. Processing of the flotation concentrate using pressure oxidation techniques and bio-oxidation techniques will also be completed over the next several months to allow final selection of the metallurgical process for treating New Polaris ore. Current process test work indicates that production of a flotation concentrate, followed by pressure oxidation of the flotation concentrate and CIL treatment of the flotation tailings will recover 94 percent of the gold in New Polaris ore.

With regard to marketing of New Polaris concentrates, Neil S. Seldon & Associates (Vancouver) has been retained to evaluate the potential of marketing concentrates to various smelters around the world. Meetings with Asarco and Dowa indicate that it may be feasible to directly market New Polaris concentrates, rather than build a pressure oxidation plant on site. This would reduce the initial capital expenditure for the project by approximately CDN $20 million.

H.A. Symons (Vancouver) is also working on scoping studies for Canarc, specifically to analyze the viability and profitability of shipping raw ore offsite for processing at existing, under-utilized, permitted mill facilities within 300 km of the minesite. Conceptually, this alternative mine development plan is attractive to Canarc because it could dramatically reduce capital costs and increase the rate of return on the New Polaris project.

Canarc recently entered into confidentiality agreements with six senior and intermediate gold mining companies, all of whom have expressed interest in the New Polaris project. Data reviews and site visits are now underway with a view to bringing in a senior partner to develop New Polaris to production.

"At current prices, the adjusted market capitalization of Canarc is currently valuing our 2 million oz. in gold reserves/resources (1.6 million oz. at New Polaris and 360,000 oz. at Bellavista) at just US $12 per oz. gold in the ground, with no value assigned to our huge strategic land holdings in Suriname and elsewhere. We believe the share price has been unduly punished due to the Bre-X fiasco, and it should rebound as investors return to quality projects and recognize the underlying value of Canarc's assets," stated Bradford Cooke, President and C.E.O. of Canarc.

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:
Robert Carriere
Manager of Investor Relations
Tel: (604) 685-9700

Gold Stocks | BC Mines | Costa Rica Mines | Suriname Project | Mexico Silver | Corporate Profile | Management Team | Site Map
Gold Information: Gold Institute | Gold Stocks | The Bullion Desk