FINAL TRANSFER OF BENZDORP PROPERTY TO CANARC’S SUBSIDIARY
Vancouver, British Columbia, Canada
June 9, 2003
Canarc Resource Corp. (CCM: TSX and CRCUF: OTC-BB)
(“Canarc” or the “Company”) announces
that the final transfer of the Benzdorp property exploration concessions
in Suriname from Grassalco, the state mining company, to Canarc’s
subsidiary, Benzdorp Gold NV, has now been completed.
Canarc’s rights to acquire and develop the Benzdorp property
are set out in a Shareholders Agreement dated April 1996 and an
Amending Agreement dated August 2002. The Company owns 40%
of the voting shares of Benzdorp Gold NV and holds an option to
earn an additional 40% currently in escrow by paying US$300,000
to Grassalco, spending US$3,000,000 on exploration and delivering
a positive feasibility study. Grassalco’s 20% of the
voting shares gives it the right to receive either a floating
net revenue interest (NSR) of 1.5% to 6% based on the price of
gold or a 20% net profits interest (NPI) after Canarc recovers
all of its capital investment with interest.
At 1,380 km², Benzdorp is one of the largest mineral properties
in the country. The Benzdorp property is also the most prolific
gold producing region in all of Suriname, having produced over
1,000,000 oz. gold historically, including 500,000 oz. from bucket-line
dredging and 500,000 oz. by porknocking (small scale hydraulic
mining) of the extensive, gold rich alluvial placer deposits.
From 1996 to 1997, Canarc explored the easternmost 5% of the
property, and discovered several bulk tonnage and/or high-grade
gold prospects within a semi-continuous, gold mineralized belt
20 km long. Virtually every creek draining this gold mineralized
belt has been mined for gold. More recently, Canarc has focused
on trenching of the large JQA porphyry-style bulk tonnage target
and the Pointu Kreek shear-type high grade target that flanks
JQA to the west. Canarc is now preparing to commence the first
drilling program on the property. The drill has cleared customs
in Suriname and will be mobilized to the Benzdorp area this week.
Canarc Resource Corp. is a growth-oriented, gold exploration
and mining company listed on the TSX (symbol CCM) and the OTC-BB
(symbol CRCUF). The Company’s principal asset is its
100% interest in the 1.3 million oz New Polaris gold deposit located
in northwestern British Columbia. Major shareholders include
Barrick Gold Corp. and Kinross Gold Corp.
On Behalf Of The Board Of Directors
CANARC RESOURCE CORP.
/s/ Bradford J. Cooke
Bradford J. Cooke
For more information, please contact Gregg Wilson at tel: (604)
685-9700, fax: (604) 685-9744, email [email protected] or visit
our website, www.canarc.net. The TSX Exchange has neither
approved nor disapproved the contents of this news release.
Suite 800 - 850 West Hastings Street, Vancouver, B.C.,
Canada, V6C 1E1 Tel: (604) 685-9700 Fax: (604) 685-9744