Canarc Subsidiary Aztec Silver Corp. to Commence Drilling on Zacatecas Silver Projects
Vancouver, British Columbia, Canada,
November 5, 1999
Bradford J. Cooke, President and C.E.O of Canarc Resource Corp. (TSE-CCM) is pleased to announce that the first drill program of a 9 property joint venture in the Zacatecas Silver District, Mexico, with Far West Mining Ltd. (ASE-FWM) is scheduled to commence on or about November 15th. Far West recently raised $3.5 million in financing that allows the two companies to accelerate their exploration programs to delineate and drill multiple prospective targets.
Permits to drill the Lobo 10 property have been received, while permits to drill targets on the Lobo 14 and Lobo 16 properties are pending. The initial drilling will test two of several geochemical /geophysical anomalies defined on the Lobo 10 property which is situated in the vicinity of the San Martin/Sabinas mine complex (a combined 70 MM tonne silver rich, base metal skarn deposit).
A reverse circulation drill contract is being let for a minimum 2,000m to be completed by mid December. Drilling will recommence in mid-January to test multiple targets on several properties which are being further defined with ongoing geochemical and geophysical surveys.
In February of this year, Far West entered into an option agreement with Aztec Silver Corporation to earn a 50% interest in nine properties covering 485,949 hectares in the States of Zacatecas and San Luis Potosi in north central Mexico. Aztec Silver is a private company, approximately 70% owned by Canarc Resource Corp. Under the terms of the option agreement, Far West is to spend US$ 5.5 million on exploration over a three year period, issue a total of one million shares of Far West to Aztec Silver and make a US$ 500,000 cash payment to become fully vested.
Historic prospecting of exposed hillsides over the past 400 years resulted in the discovery of the numerous world class mineral deposits in the States of Zacatecas and San Luis Potosi States of Mexico. The region hosts the prolific 1 billion oz. Fresnillo silver mines as well as Zacatecas (high grade silver veins produced 1.2 billion oz. / +500 million oz. in reserves), San Martin/Sabinas (Mexico's largest underground mine)and Concepcion del Oro (both polymetallic skarn deposits / in excess of 70 MM tonnes each), Real de Angeles (85 MM tonnes disseminated silver/lead/zinc deposit) and Charcas (Mexico's largest zinc producer).
Most of these mines and other mineral occurrences discovered in the region are replacement style skarn, manto, and chimney deposits, as well as, vein systems all associated with Tertiary aged felsic intrusions. Many of the Aztec/Far West targets discovered to date are of this type.
The implementation of modern exploration techniques in the pediment filled valleys has led to the recent discoveries of buried (blind) deposits such as the +35MM tonne Francisco I. Madero (manto) and the 85MM tonne San Nicolas (VMS) polymetallic deposits. Modern geophysical and geochemical techniques can identify such deposits as well as buried Tertiary intrusions associated with many of the large silver-rich deposits found in the region.
Aztec and Far West have utilized detailed airborne geophysical surveys to identify signatures similar to the felsic intrusions associated with the nearby large operating mines. A total of 14,500 line km of aeromagnetic/radiometric surveying was carried out over portions of eight of the nine properties. A 400-line km airborne Mag/EM surveying was conducted over the remaining property. It should be noted that only 20% of the land covered by the properties has been flown.
Initial analysis of the airborne data led to the selection of 54 targets for follow-up geochemical testing in areas believed to be hosting buried Tertiary intrusives. Proximity to existing mines or mineral deposits, favourable structural setting, the host geology and depth of cover were all factors considered in the target selection process.
Geochemical testing of the first 54 targets has returned 27 silver-base metal anomalies, 8 of which have been followed up thus far with gradient and pole-dipole geophysical surveys. It is anticipated that most of these anomalies will be tested by drilling, and that further targets will be generated with the ongoing exploration.
Outside of the Far West joint venture, Aztec owns an additional 4 properties in the Zacatecas Silver District that are joint ventured with Noranda Minerals and Mill City Industries. Noranda has been actively exploring the Lobo 6 and 8 properties using geophysical surveys and an initial drill program on Lobo 6 is expected to commence in the new year.
Canarc Resource Corp. is a growth-oriented, international gold exploration and mining company. Production increased 36% last year at the Company's Sara Kreek (80%) mine. Reserves and resources now total 2 million oz. at the New Polaris (100%) and Bellavista (18% after payback) projects. Our large exploration portfolio includes joint ventures with Homestake and Noranda. Major shareholders include Barrick Gold and Echo Bay Mines. The Company's common shares trade under the symbol CCM on the Toronto Stock Exchange and CRCUF on the OTC Bulletin Board.
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
President and CEO
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