Appointment of Director and Year End Review
Vancouver, British Columbia, Canada,
May 29, 1997
Vancouver, British Columbia, Canada, May 29,
1997.....Canarc Resource Corp. is pleased to announce
the appointment of Walter J. Riva to the Board of Directors. Mr.
Riva brings to the Canarc Board many years of business experience
in the mining industry.
Walter Riva started his career in the late 1940's as an
underground coal miner and mining engineer, rising through the
ranks to become C.E.O. of Canmore Mines Ltd. Amongst the many
senior technical and corporate positions Walter has held, the
most recent was as C.E.O., President and then Chairman of Kaiser
Resources Ltd., Westar Mining and B.C. Resources in the early
Mr. Riva has played a prominent role in the Canadian Institute
of Mining and Metallurgy, ultimately active as its President in
1984. Walter also played a key technical role in the coal
industry as the co-inventor of the patented form-coke process and
the coal pelletizing process.
Mr. Riva will play a significant advisory role on strategic
acquisitions and corporate matters as Canarc grows from gold
explorer to producer status through the development of its New
Polaris project in northwestern British Columbia.
The other directors elected at the Company's Annual General
Meeting are Bradford Cooke, President and C.E.O., Chris
Theodoropoulos, Derek Bullock and Bradley Aelicks. Mr. Craig
Angus has stepped down from the Board and Canarc thanks him for
his service to the Company.
YEAR END REVIEW: Canarc Resource Corp. turned in
another year of solid growth in 1996, achieving most of the goals
management set out for the Company last January.
Most importantly, our renewed focus on developing the Polaris
deposit in northwestern British Columbia allowed us to raise $9.2
million through a special warrant financing and commence a major
feasibility program onsite. New gold prospect areas were
identified within the mine workings based on a comprehensive
review of historic sampling and drilling data. By year end,
underground drilling on the AJ mine level discovered some
significant gold-mineralized shear zones that should expand the
geological resource base. Management's view is that Polaris
represents one of the largest gold deposits in Western Canada and
it has the potential to become a significant producing mine over
the next 3 years.
In Suriname, Canarc dramatically expanded its property
portfolio in 1996 through the option of several new projects, all
of which have either historic or current alluvial gold
production. After more than three years of negotiations, Canarc
also secured an option on the Benzdorp property, the largest
historic and current alluvial gold producing property in the
country, proof that patience does indeed have its rewards. By
year end, the Company had launched a Phase I exploration program
on several of these new properties, as well as a Phase 2
exploration program at Sara Kreek. Our partner at Sara Kreek
also had a good year, producing 2,200 oz. of placer gold
production on behalf of our joint venture. Sara Kreek and
Benzdorp are now "drill-ready" and represent Canarc's
next opportunity to make a significant gold find.
Canarc also undertook in 1996 the successful acquisition of a
large mineral land holding in the Central Kalimantan Gold Belt in
Indonesia. Unfortunately, Canarc's share price dropped sharply
in reaction to the Bre-X fiasco. Even though management's
strategy of acquiring a large prospective landholding in the
Kalimantan Gold Belt using "other peoples' money" was a
resounding success, the stock has been unduly punished due to a
selloff in the junior mining sector. We wish to reassure our
shareholders that (a) Canarc has no intention of spending its own
money in Indonesia, (b) our subsidiary company, IndoAsia Gold
Ltd., has temporarily halted all exploration work to preserve
cash, (c) some of our junior partners have dropped out of our
joint venture agreements thereby returning 100% property
interests to IndoAsia, (d) management has initiated joint venture
discussions with a number of major mining companies who have
expressed strong interest in certain properties, and (e) we
remain confident that the Company's valuable assets will
ultimately be reflected in a stronger share price.
Last but not least, significant progress was made on other
projects in the Company: our partner on the Bellavista project
on Costa Rica completed a positive feasibility study recommending
commercial production, three properties in Chihuahua Mexico hold
promise for epithermal gold-silver deposits and new property
acquisitions in Senegal moved closer to completion.
Some exploration disappointments were also recorded,
specifically on the Baramita and Ianna properties in Guyana. As
a result, Canarc and Echo Bay agreed to cease exploration on
Baramita and look for another property on which to continue our
On the financial front, Canarc recorded an 18% rise in total
assets and shareholder equity to US$25,967,000, cash and
marketable securities increased 7% to US$5,719,000, and G & A
expenditures dropped 41% to US$3,161,000, including a
US$1,592,000 writedown in resource properties and marketable
In the stock market, Canarc's common shares jumped 100% to
Cdn$3.00 in the first half of 1996 but then tailed off 50% to
close at Cdn$2.00 by year end. Given that Cdn$2.00 per share
represents a market valuation of only US$22 per resource oz. for
Polaris and Bellavista, management feels that Canarc shares
continue to offer investors solid value as well as growth.
Canarc shareholders can look forward to a threshold year in
1997. We hope to complete the onsite feasibility work program at
Polaris and drill for new gold discoveries in Suriname. Canarc
management is also reviewing potential mine acquisitions as a
means to enhance our growth. Given the depressed share prices of
all gold stocks at this time, "Opportunities abound in times
We thank our shareholders and employees for their support as
we continue to focus on growth through the discovery and
development of gold deposits worldwide.
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