Canarc Announced Today That Placer Dome Inc. Has Elected Not To Proceed With Their Option
August 14, 1998
VANCOUVER, B.C. - Canarc Resource Corp. announced today that Placer Dome Inc. has elected not
to proceed with their option to earn a 60% interest in the Benzdorp
property in Suriname.
Canarc holds the right to earn up to an 80% net profits interest or a 100%
interest subject to a net smelter royalty from Grassalco, a mining company
owned by the Republic of Suriname.
Grassalco failed to agree with the granting of the Placer option. Placer
had offered to pay US$20 million in cash, spend US$3.5 million in
exploration and deliver a positive feasibility study.
It is Canarc's intention to proceed with the exploration and development of
the Benzdorp property as soon as Grassalco meets its obligations under the
At that time, Canarc will seek a new joint venture partner. Canarc has
spent close to $2 million delineating several large porphyry and shear-zone
hosted gold targets which are now ready for drilling.
Canarc Resource Corp. is a growth-oriented, international gold exploration
and mining company. Production increased over 300% last year to 7000 oz.
at the Company's Sara Kreek (80%) mine . Reserves and resources now total
2.4 million oz. at the New Polaris (100%) and Bellavista (18%) projects.
Our large exploration portfolio includes a joint venture with
Homestake/Prime. Major shareholders include Barrick Gold and Echo Bay
Mines. The Company's common shares trade under the symbol "CCM" on the
Toronto Stock Exchange.
Office of the Premier
Mining is a major contributor to B.C.'s economy, especially outside
the Lower Mainland. The province continues to foster its mining sector
to encourage investment and employment.
Total mining-related employment* is approximately 58,000.
*Total mining-related employment includes exploration
for and production of metals, coal, industrial minerals, aggregate, placer
minerals and smelters.
direct employment approximately 16,700
indirect employment approximately 25,000
induced employment approximately 16,300
There are 22 major operating mines and five smelters in B.C.
In addition, there are
30 industrial minerals mines
1,100 construction aggregate operations
500 placer exploration programs and mines annually
300 metal and coal exploration projects annually
There are nine projects in the environmental assessment process
seven new mining operations
two mine expansions
The value of minerals produced in 1996 was $3.11 billion (including construction
metals $1.54 billion
coal $1.09 billion
industrial minerals $44 million
Mineral exports accounted for 13.2 per cent of all B.C. exports in 1996.
Exploration expenditure in 1997 is estimated at $90 million.
Average annual expenditures in B.C. over the previous five years has been
Clean coal production values in 1996 increased by 13 per cent.
The Mineral Exploration Code
Streamlining the permitting for mineral and coal exploration will:
Simplify the permitting process for mining industry by creating a one-agency
permitting process that combines the application requirements of the ministries
of Energy and Mines, Environment, Lands and Parks and Forests; and
Ensure accountability by setting timelines for the review and approval
of permit applications;
A multi-stakeholder review of the Mineral Exploration Code will take place
after one full season of operating experience to fine tune if needed.
The Mining Rights Amendment Act
The Mining Rights Amendment Act is intended to attract investment and
create jobs in the sector by demonstrating government's commitment to the
industry, assuring access to lands for exploration and mining, and ensuring
appropriate compensation is paid for mineral tenures expropriated in order
to create parks.
The Mining Rights Amendment Act addresses requirements outlined in the
Mining Jobs 2000 initiative, including industry's requirement for access
to land, security of title and an efficient and transparent permitting
Land-use plans may propose specific objectives and strategies to guide
the conditions for access development and management, however, they cannot
prohibit appropriate access to mineral claims. This is consistent with
government's clearly stated previous direction and intent to the land use
Significant parts of the act are:
Assurance of access to mineral titles through amendment of the Mineral
Tenure Act to ensure that a mineral tenure holder will be issued a special-use
permit by the Ministry of Forests for appropriate ground-based access to
his or her tenure, if the tenure holder also holds a permit under the Mines
Act for mining activities and meets other prescribed conditions;
Compensation for expropriated mineral titles through the amendment of the
Mineral Tenure Act, the Park Act and the Expropriation Act to require that
tenure holders are compensated when their tenures are expropriated;
The permitting process section permits the creation of regulations to govern
the permitting process for mining activities under the Mines Act, including
the establishment of timelines for the processes.
Mining Advocate responsibilities include:
Mining Exploration B.C. Tax Credit
Creating within government a positive investment climate for mining in
Addressing issues directly and at a high level to ensure a smooth and efficient
process for the administration of exploration and mining;
Recommending amendments to statutes and regulations to encourage responsible
mining in British Columbia;
Facilitating resolution of mining-related operational disputes and permitting
delays within provincial agencies.
New Mine Allowance Extension
The government will introduce a refundable tax credit for mining exploration
undertaken in British Columbia. The credit will be available to individuals
and corporations for exploration activities in the province after August
1, 1998. Details of the program, including eligibility criteria and application
procedures, will be worked on in conjunction with industry during the next
A working group will be established with representatives from the Ministry
of Finance and Corporate Relations, the Ministry of Energy and Mines and
the metal and coal mining industries to design the credit.
The Mining Exploration B.C. tax credit will provide an incentive to the
industry of approximately $7 million in 1998/99, rising to $9 million in
1999/2000 and future years.
To encourage new mine development in the province, the new mine allowance
currently provides for a one-third gross-up of the capital costs of new
mines that begin production before January 1, 2000. This means that 133.33
per cent of qualifying capital expenditures can be claimed for B.C. mineral
To provide further confidence for the investment necessary for the industry
to thrive into the 21st century, this initiative will be extended for 10
years, to new mines that begin production before January 1, 2010.