Further Gold Production Records Set at Sara Kreek Mine in Suriname
Vancouver, British Columbia, Canada,
November 18, 1997
Vancouver, British Columbia, Canada, November 18, 1997.....Canarc Resource Corp. is pleased to announce that further gold production records were
recently achieved at its Sara Kreek Mine in east-central Suriname. For the
quarter ending September 30, 1997, raw gold production totalled 58.6 kg
(1,884 oz.), up180% from the 20.4 kg.(656 oz.) produced in the third
quarter of 1996.
In addition, October production totalled 50.4 kg (1,620 oz.), more than
double any previous month since the mine startup in 1995. Included in
October's production was a 7.5 kg (241 oz. or 20.1 lb.) nugget, one of the
largest ever recorded from the Sara Kreek district.
Canarc and its partner are now on track to produce in excess of 6,500 oz.
gold in 1997, almost triple the 2,280 oz. produced in 1996. Cash costs of
gold production are now estimated to be in the low US$200's per oz. due to
the steadily increasing production. Most 1997 net revenues have been
reinvested into purchasing additional heavy equipment for the minesite.
Sara Kreek is a small surface placer mine operated by Canarc's partner,
Suriname Wylap Development Co., and produces gold nuggets and dust by
sluicing of alluvial gravels from several creeks on the property. Sara
Kreek is one of the largest gold districts in Suriname, having produced
over 500,000 oz. gold historically. No formal gold reserves have been
estimated for the Sara Kreek Gold Mine. However, systematic pitting and
panning of the gold bearing creeks indicate the possibility of many years
of production at current rates. Full capacity is anticipated to average
643 oz. per month or 8,000 oz. per year by 1998.
In an unrelated matter, the Company has entered into a private placement in
Levelland Energy & Resources Ltd. ("Levelland") for 400,000 units at $0.35
per unit, each unit to consist of one common share and one warrant to
purchase a further common share at $0.35 within one year. Canarc now holds
8.1% of Levelland's 10,912,800 shares issued and 14.0% on a fully diluted
basis. The purchase was made for investment purposes only using proceeds
from the sale of other Levelland shares, and the Company currently has no
intention to increase its beneficial ownership of, or control in the
securities of Levelland.
For further information, contact:
Manager of Investor Relations
Tel: (604) 685-9700