Canarc Options Third Property In Mexico To Noranda
November 19, 1998
Vancouver, British Columbia, Canada
Canarc Resource Corp. is pleased to announce that the Company has optioned
a third property in Mexico to Noranda Minerals Inc. Minera Aztec S.A. de
C.V., a subsidiary of Canarc, has entered into an agreement on the 1018
hectares Lobo 7 property in Zacatecas State, Mexico with Minerales Noranda
S.A. de C.V., a subsidiary of Noranda, whereby Noranda can earn up to a
100% interest by working on the property over the next 2 years.
Upon exercising the option, Minera Aztec S.A. de C.V. will retain a 3% net
smelter royalty which Noranda can buy down to 1*% by paying an additional
$1,000,000 per *%. In a separate agreement, Noranda has also agreed to pay
Canarc $1,575,000 in a series of cash payments over 2 years.
The Lobo 7 concession is located in Zacatecas State, Mexico, approximately
40 km southeast of the rich Fresnillo silver mine, 30 km north of the
prolific Zacatecas silver producers and 70 km northwest of the huge new San
Nicolas massive sulfide discovery of Western Copper/Teck.
The favourable Cretaceous marine sediments and island arc volcanic rocks
that host the Fresnillo, Zacatecas and San Nicolas deposits are believed to
also extend underneath the Lobo 7 property. Lobo 7 is surrounded by other
Noranda properties and covers a portion of a strong aeromagnetic anomaly
that flanks a pronounced east-west aeromagnetic lineament.
In this region, such aeromagnetic highs and related structural lineaments
are often associated with buried Tertiary granitic intrusions and
silver-rich mineral deposits. Little exploration has been carried out
previously in the area due to recent pediment covering the bedrock but
modern geophysical and geochemical surveys carried out by Noranda have
identified several targets and drilling will commence before year end.
Stated Godfrey Walton, Vice President Exploration for Canarc, "This third
property agreement in Mexico with Noranda reflects favourably on the
technical merits of Minera Aztec's projects. We anticipate further joint
ventures with major companies on strategic prospects such as our San Martin
and Charcas properties, both of which adjoin large operating mines."
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 million oz. combined at the New Polaris (100%) and Bellavista (18%)
projects. Our large exploration portfolio includes joint ventures with
Homestake/Prime 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.
ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.
Bradford J. Cooke
For further information contact:
Tel: (604) 685-9700
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