Benzdorp is historically
the most prolific gold producing region in the Republic of Suriname with
alluvial production exceeding 1 million oz. gold. Canarc's recent exploration
results confirm the potential for a major new gold discovery. Canarc plans
to carry out the next phase of trenching work in 2002 in order to identify
top priority targets for drilling.
Location and Access:
Southeastern Suriname, 300 km southeast of Parimaribo, the capital city, accessible by charter aircraft to the nearby Tabiki airstrip or by boat up the Marowijne River, then by ATV on the property roads.
Four exploration concessions
measuring 42 km x 31 km, totaling 138,000 hectares. Canarc holds an option
to acquire a 100% interest (subject to a 20% NPI or 1% to 6% NSR) in the
subsurface mineral rights from Grassalco, the state-owned mining company.
Canarc and Grassalco are in
the process of incorporating the Suriname company into which the mineral
titles will be transferred. Upon completion, Canarc intends to proceed
with trenching work to further develop Benzdorp. Management believes Benzdorp
has the potential to be Canarc's next major gold discovery.
Gold production was first recorded from Benzdorp in the late 1800's when English and Dutch companies exploited the alluvial deposits. The Jungle Queen dredge produced over 500,000 oz. alone over a 40 year period. In recent times, hundreds of illegal small-scale miners produce 10,000's oz. gold each year reprocessing the river gravels. Canarc acquired its property option in 1996 and since then has spent US $2 million on 1000's of soil samples, 100's of deep auger drill holes, and three long bulldozer trenches.
Up to several million oz. gold,
with some geological similarities to both the 4 million oz. Omai mine
and the 50 million oz. Ashanti mine.
Most of the known gold prospects
occur on the easternmost 5% of the property within a northeast-trending
greenstone belt of meta-volcanic and meta-sedimentary rocks intruded by
dioritic plutons and crosscut by northeast, north and northwest-trending
structures. Every creek for 20 km has produced or is currently producing
placer gold. Canarc has focused on four gold prospects which are now drill
ready. The JQA prospect alone measures 750 m long x 250 m wide averaging
1 gpt gold, open in all directions. The exploration target here is a porphyry
gold deposit of several hundred million tonnes containing 2 to 20 million
oz. gold to 300 m depth.