Vancouver, British Columbia, Canada,
March 27, 1997
Vancouver, British Columbia, Canada, March 27,
1997.....Bradford Cooke, President and CEO of Canarc Resource Corp. reports:
The recent negative news announcements by Bre-X Minerals have prompted investors in the junior mining sector to carefully reconsider each of their investments. We sense that there will be a return to value investing in the junior mining sector with investors looking for both downside protection as well as upside potential.
We believe the New Polaris gold property is a core asset that minimizes the downside risk in Canarc's share price for shareholders. Canarc is one of the few junior mining companies in the resource sector to offer investors both a bankable development stage project that supports the market capitalization, as well as an attractive portfolio of exploration projects worldwide, to provide strong upside potential for Canarc shareholders.
With Canarc's shares at CA $1.25, our adjusted market capitalization is just US $2.6 million, or only US $13 per resource ounce for the 1.6 million ounces currently reported at Polaris and the 400,000 ounces that Canarc holds at Bellavista. This valuation approach attributes no market value to Canarc's huge mineral land holdings in Suriname, Indonesia, Mexico and elsewhere. It also shows just how undervalued Canarc's shares appear to be in comparison to its peer group.
In the meantime, we continue to make steady gains in our drilling activities at the New Polaris property in Northwestern B.C. and the Sara Kreek property in South Central Suriname. The following is a brief update to shareholders on Canarc's core projects at this time:
* The major underground drilling, development and feasibility program continues to produce positive results on a daily basis. Drilling continues to intercept new gold zones not currently in the resource model, gold resources are anticipated to continue rising throughout the year and the next announcement of drill results will be made in mid April.
* Polaris geologists have identified two large areas to test for new ore within the mine wedge, as well as many other areas outside of the mine wedge.
1. AB zones below the 450 mine level (400 ft. below surface) where all mining in AB stopped arbitrarily. The potential here is substantial with 2,000 ft. of strike length, several thousand ft. of depth potential and average widths ranging from 5 to 20 ft. Drilling is scheduled to start testing this target area in late April.
2. Y zones below the 300 mine level where most mining in Y stopped historically. The potential length and depth of the Y zones are similar to the AB zones except that they are typically 5 ft. wide and there are multiple parallel Y zones that have never been drilled. Drilling is scheduled to start testing these zones this summer.
* Dewatering of the mine workings is now about half way down the shaft. The 300 mine level has been breached, dewatering continues and the 300 level should be open, rehabilitated and accessible for drilling by the end of April. The bottom of the mine and the 600 mine level should be accessed and rehabilitated by the end of May. Fill-in drilling can then continue from the 600 mine level throughout the rest of 1997 in order to move geological resources into minable reserves for the feasibility study.
* Canarc has launched an initial 10 hole diamond drilling program on two gold prospects at Sara Kreek that previously returned economic grades over minable widths in deep auguring, machine trenching and diamond drilling. Three holes have been completed already, the balance of the 10 holes should be complete by next week and Canarc anticipates a news announcement of drill results on Sara Kreek by mid April.
* Management anticipates the possibility of expanding the drill program and budget immediately after the announcement of drill results in April so that sufficient drill holes can be completed in 1997 to prepare an initial resource estimate on the property.
* Additional deep auguring is ongoing at other gold prospect areas on the Sara Kreek property in anticipation of expanded drilling activities.
* Extensive soil sampling, deep auguring and geological mapping continues on numerous gold prospect areas on the Benzdorp property in anticipation of major Phase I drill program starting up this spring.
* Canarc has not only identified numerous, large, highly anomalous gold prospects that are ready for drilling, site geologists have also located what could be the extension of the upper Antino gold discoveries made by Golden Star immediately south of our Benzdorp property boundary. These areas are also being prepared as quickly as possible for a diamond drilling program at Benzdorp.
Management is also reviewing several major acquisition opportunities in the gold mining business. Our focus on value at Polaris as well as our strong exploration projects in Suriname and elsewhere should provide Canarc shareholders with both downside protection and upside potential in the Canarc shareholdings. If you have any questions or comments, please feel free to contact myself, Gil Atzmon or Robert Carriere at your convenience.
CANARC RESOURCE CORP.
Bradford J. Cooke
For further information, contact:
Manager of Investor Relations
Tel: (604) 685-9700