Second Quarter Review
Vancouver, British Columbia, Canada,
July 15, 1999
Bradford J. Cooke, President and C.E.O. of Canarc Resource Corp. is pleased to provide this review of the 2nd Quarter and outlook for the 3rd Quarter, 1999.
The price of gold bullion continued to make new 20 year lows (<$260 per oz.) during the quarter due to the threat of continued central bank gold sales, including the Swiss Bank, IMF and Bank of England. Share prices of gold companies including Canarc, were depressed further by negative investor sentiment towards gold.
Notwithstanding these poor market conditions, Canarc management continued to make good progress on the Company's exploration and mining projects. Our strategy of joint venturing exploration projects to reduce Canarc's risks and costs has successfully preserved our working capital while continuing to give shareholders exposure to new mineral discoveries.
Share price appreciation for junior gold companies in this market is driven almost solely by new discoveries such as Argentina Gold and Manhattan Minerals. In the 3rd and 4th quarters Canarc will have several opportunities for a new discovery through drilling programs funded by JV partners.
During the 2nd quarter, Canarc made a spectacular high grade gold find by bulldozer trenching at the Sara Kreek property in Suriname. The DP zone returned individual channel samples up to 25.3 gpt gold over 8.0 metres width and grab samples up to 1800 gpt gold! The highlights for the quarter include gold production up again at the Sara Kreek mine; a positive feasibility study completed by partner Wheaton River Minerals on the Bellavista project, and an accord to resolve the dispute regarding the Benzdorp property and the arbitration and legal actions were withdrawn.
HIGHLIGHTS - 2nd QUARTER:
- A positive feasibility study was completed by Wheaton River Minerals on the Bellavista Project in Costa Rica - The mine should produce 60,000 oz. per year over a 7 year period at cash operating costs of US$156 per oz.
- A bulldozer trenching program returned high gold grades over significant vein widths on the Sara Kreek property in Suriname. - The main mineralized zone averaged 12.1 gpt gold over 5.7 m width along a 175 m length, still open at both ends. - Individual grab samples returned up to 1800 gpt gold! - A feasibility study is now underway.
- Gold production at the Sara Kreek mine was approximately 100 kg (3215 oz.), up 25% over 2nd quarter of last year.
- The dispute with Grassalco on the Benzdorp project was going to arbitration until the two parties reached an accord to resolve the outstanding issues. - The arbitration and legal actions were subsequently withdrawn - further discussions are underway.
- Airborne geophysical surveys were completed and ground geochemical surveys were initiated on the 13 properties held by subsidiary Aztec Silver and joint ventured with Noranda Minerals and Far West Mining. - Several outstanding anomalies were discovered that are being followed up prior to drilling.
- Canarc's shareholding in Consolidated Magna Ventures increased in value when Magna (CMV-VSE) announced an agreement to acquire CoyoteNet, an internet access company.
OUTLOOK - 3rd QUARTER:
- A diamond drilling program is planned by partner Homestake Mining on the Eskay Creek property.
- Aztec Silver should complete ground surveys on the 9 Zacatecas properties optioned to Far West Mining.
- A reverse circulation drilling program is planned by partner Noranda Minerals on 2 Zacatecas properties.
- Aztec plans to acquire another attractive silver property in Mexico.
- A feasibility study should be completed for the DP zone on the Sara Kreek property.
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
President and CEO
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