Shareholder Update - Second Quarter Review
Vancouver, British Columbia, Canada,
July 31, 2000
Bradford Cooke, President and CEO of Canarc Resource Corp. is pleased to provide a review of the Second Quarter and our plans for the Third Quarter. The Company remained focused on its important assets in Mexico and Suriname during the quarter.
Drilling programs were carried out on both the Noranda and Far West joint ventures. Far West expects to continue drilling during the third quarter.
Gold production was steady at the Sara Kreek Placer Mine through the Second Quarter. Canarc also applied to receive the concession titles to the Benzdorp property from the Ministry of Natural Resources.
The Third Quarter should remain busy, with drilling programs in Mexico and B.C. Management continues to work on its acquisitions strategy in the gold and silver sectors.
Highlights from 2nd Quarter
- Far West drill program on Lobo 14 property intersected wide zone of silver oxide vein mineralization - individual veins are up to 15 metres wide and have been traced geochemically for more than 2 km along strike.
- Noranda drill program on Lobo 6 property failed to reach bedrock - Noranda dropped its option on Lobo 6 and Lobo 8 but their geophysical magnetic and electromagnetic anomalies remain untested.
- Canaccord Capital Corp. reneged on its agency agreement to underwrite the IPO for Minera Aztec Silver Corp. (63% Canarc) - another brokerage firm has offered to complete the IPO but the Prospectus must be amended and refiled.
- Canarc applied for the Benzdorp concession titles but the process has been delayed by the Suriname national election and a Border dispute with Guyana - we hope to finalize this matter in the Third Quarter.
Plans for 3rd Quarter
- Continue Far West drilling program on the Lobo 14 property.
- Commence Homestake drilling program on our Eskay Creek property.
- Secure Benzdorp concession titles.
- Seek DP Mine Financing.
There was another good news-bad news development of note during the Second Quarter that is of interest to Canarc shareholders. Redfern Resources, who wish to build their large Tulsequah Chief Cu-Zu-Au-Ag mine adjacent to our New Polaris Au deposit, lost their development permit and government approval.
The local native band had sued the provincial government to block the permit until their concerns could be heard and in late June, the B.C. Supreme Court ruled in their favour. Fortunately, the judge agreed to allow Redfern to restart its permitting process at the tail end and they now expect a new development permit in January, 2001.
Even though Canarc has placed its New Polaris gold project on the back burner, the Tulsequah Chief mine project includes a new road that should positively impact our New Polaris costs and economics. Management will view Redfern's new permit, when issued, as a turning point for mining in the Province of B.C.
For further information contact Robert Carriere, Investor Relations at (604) 685-9700 or visit our website: www.canarc.net.
CANARC RESOURCE CORP.
Bradford J. Cooke
For further information contact:
Tel: (604) 685-9700
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