1st Quarterly Report 1997
Vancouver, British Columbia, Canada,
June 5, 1997
Vancouver, British Columbia, Canada, June 5,
1997.....Canarc Resource Corp. is pleased to announce
its Quarterly Report for the period ending March 31, 1997.
New Polaris - Underground drill program at New Polaris
boosts geological resources 10% to 1.6 million oz. gold, drilling
and feasibility work to continue to year-end.
Sara Kreek - 13 km of prospective strike length in two
principal mineralized shear zones confirmed by surface sampling
and deep augering at Sara Kreek, drilling underway in 2nd
Benzdorp - Large bulk tonnage, open pit gold targets
discovered at Benzdorp by surface sampling and deep augering,
drilling proposed this summer.
Management - Mr. Pierre Masse, B. Eng. Mining, C.A.,
joined the Senior Management team as V.P. Finance and C.F.O.,
bringing to Canarc over 22 years of industry experience
Shares - Canarc's shares listed on the Frankfurt and Berlin Stock
Exchange, in order to enhance investor awareness of the Company
Expenditures - Canarc recorded property expenditures of
US$1.8 million, including a US$559,000 net loss for the quarter
and a US$300,000 writedown on the Company's indirect interest in
Working Capital - Cash and cash equivalents totaled US$3.5
million at March 31.
In keeping with management's theme of focusing on the
development of Canarc's main assets, the First Quarter ending
March 31, 1997 saw the Company continue to make strong progress
on the New Polaris feasibility project in northwestern British
Columbia and the Benzdorp and Sara Kreek exploration projects in
Suriname, South America.
In contrast, Canarc's share price dropped sharply in reaction
to the Bre-X fiasco. Even though management successfully
attracted joint venture partners to acquire a large prospective
landholding in the Kalimantan Gold Belt on Canarc's behalf, the
stock has been unduly punished due to a selloff in the junior
mining sector. Notwithstanding negative investor sentiment at
this time, management feels Canarc's assets deserve a higher
market valuation. Ongoing work programs at New Polaris and in
Suriname should provide the material developments to support a
positive market re-rating.
At March 31, 1997 the Company had cash of US$3.5 million
available to fund its exploration activities and overhead. This
compares with US$3.7 million at December 31, 1996. In the first
quarter, the Company raised US$1.6 million for use in exploration
programs in Indonesia through its Subsidiary Company, IndoAsia
Gold Ltd. IndoAsia issued US$1.2 million worth of shares and
borrowed US$400,000 from merchant bankers, which loans have since
been repaid. Exploration and property acquisition costs in the
first quarter totaled US$1.8 million, the majority of which was
spent on the New Polaris property. The loss for the three months
ended March 31, 1997 was US$559,000 as compared to US$170,000 for
the comparable period in 1996. The increase in cost of
US$389,000 is mainly due to the US$300,000 property write-down
and higher general administrative costs related to increased
management activities and madditional listing fees on the German
At January 1, Canarc owned 845,000 shares of Consolidated
Magna Ventures Ltd. and 1,000,000 shares of Levelland Energy and
Resources Ltd. Both Companies made significant progress on
advancing their mineral projects in Q1, 1997.
Magna acquired several attractive gold-silver and copper-iron
properties in Mexico, including the Reyna d Oro project in
Batopilas State, 18 km northwest of the El Sauzal gold discovery
of Francisco Gold. Recent sampling, both on surface and in
underground workings, by Magna and other companies returned
economic grades over mineable widths, such as 4.52 gpt over 57.0
m, 2.99 gpt over 62.0 m, 2.51 gpt over 45.0 m and 3.45 gpt over
27.0 m. During and after the quarter, Canarc elected to sell
500,000 shares of Magna to pay for a 650,000 unit private
placement in Magna, thereby increasing Canarc's holdings to
approximately 1,000,000 shares and 325,000 warrants, or 5.7% on a
fully diluted basis.
Levelland acquired prospective diamond properties in the
Buffalo Hump play in Alberta, to complement their Olympic-Dam
type prospects in NWT and gold properties in Nevada. Levelland
intends to drill the latter two projects as soon as possible.
During and after the quarter, Canarc elected to sell 360,000
shares of Levelland in order to pay for a 350,000 unit private
placement in Levelland. Canarc's holdings will thereby be
increased to 990,000 shares and 350,000 warrants, or 9.6% on a
fully diluted basis.
NEW POLARIS, B.C. (100% Canarc)
The feasibility program at New Polaris continues on schedule
with over 25,000 feet of underground diamond drilling in 54 holes
completed to March 31. The Company intersected significant new
gold mineralization in many holes, including intercepts such as
0.21 oz./ton over 29.4 feet and 0.49 oz./ton over 17.4 feet. Our
new estimate for the geological resource is now 1.6 million
ounces gold up 10% from 1.44 million oz., one year ago. The
Company also announced this Quarter that the Polaris Taku
property has been renamed the New Polaris project to reflect the
evolution of this small, high grade, past producing gold mine
into one of the largest gold deposits now under active
development in Western Canada.
SARA KREEK, SURINAME (80% Canarc)
As a result of some very favorable results from our trenching
and deep augering program on the Breakfast and Parbo anomalies,
Canarc commenced a Phase 2 drill program in order to further
delineate these mineralized zones. Some of the better auger
holes returned assays of 12.6 gpt over 10 meters and 4 meters of
11.0 gpt. These mineralized zones will see further drilling in
BENZDORP, SURINAME (80% Canarc)
Canarc's extensive deep augering and geochemical soil sampling
programs have delineated several large gold anomalies that are
drill ready. The first of twelve gold zones to be tested, JQA,
measures 200 m long x 300 m wide and averages almost 1 gpt in
saprolite to 15 m depth. This target has the potential to
contain 1 million oz. gold for each 60 m of vertical depth!
Drilling is expected to commence in June-July.
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