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SHAREHOLDER UPDATE
Glencairn Gold Acquires Bellavista Project From Wheaton
River
Vancouver, British Columbia,
Canada, November
4, 2002
On
November 1, Glencairn Gold Corp. announced that it had acquired the
Bellavista gold project in Costa Rica from Wheaton River
Minerals. This is good
news for Canarc as Wheaton River had no plans to develop the
proposed mine whereas Glencairn intends to move ahead with the
project.
Key
to the transaction was a letter from the Costa Rican Minister of
Environment confirming that the government will respect all mining
rights issued prior to the recent decree putting a moratorium on
open pit mining. In
addition, the Supreme Court at Costa Rica confirmed that Bellavista
is exempt from that decree.
In
1999, Wheaton River completed a feasibility study showing that an
open pit, heap leach gold mine could produce 60,000 oz. gold per
year for 7.3 years with total cash operating costs of only US $179
per oz. At US $325
gold, Bellavista has a 19% internal pretax rate of return and a US
$20 million net present value.
Glencairn
has also identified two other large exploration targets along strike
from the current reserves that offer excellent potential to add to
the mine life and enhance the economies of the project. Canarc owns an 18.3% net
profit interest (after the payback periods) in Bellavista and
receives annual pre-production royalty payments each January (2003
payment already received in Wheaton River shares at about $0.50 per
share).
On
another note, it has become obvious over the past two weeks that a
certain brokerage firm has been executing a market sell order that
has depressed the stock price from CA $0.40 - $0.45 all the way down
to CA $0.25 - $0.30.
Since there is no fundamental reason for the drop in the
share price and no apparent rhyme or reason behind the sell order,
we can only suggest that shareholders take advantage of the
depressed share price to pick up some more shares while they
can.
Bulldozer
trenching is now underway at the Benzdorp project in Suriname and
assays are expected in December and January. The minimum target size here
is estimated to be around 2 million oz. if the surface
mineralization in the JQA prospect continues to 250 m depth. If the JQA mineralization
actually extends beyond the current limits of deep auger and trench
samples, then the target size could be a multiple of the
minimum.
ON
BEHALF OF THE BOARD OF DIRECTORS
CANARC
RESOURCE CORP.
Bradford
J. Cooke
President
and CEO
P.S. For the latest media
articles on Canarc, go to www.smallcapmedia.com and click on "Gold" and
"Featured Company".
Author and Publisher Marc Davis gives a good recommendation
and overview on the company.
For
further information please contact Bradford Cooke at (604)
685-9700. If you prefer to receive Canarc's
News by E-Mail, please E-Mail us at [email protected].
NOTE: If you have an E-Mail address and would prefer to receive Canarc's
News through this format, please E-Mail us at [email protected].