Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN) (“Canarc”), announces that its optionee Getchell Gold Corp. (“Getchell”) has commenced a 2,000 metre drill program at the Fondaway Canyon Gold Project in Nevada (“Fondaway”). Getchell signed a 4 year Option Agreement on January 7, 2020 to acquire the Fondaway and Dixie Comstock properties located in Nevada.
About the Drilling
The six-hole 2,000 metre Phase 1 diamond core drill program includes five holes planned for the highly mineralized Central Target Area to extend the known mineralization and to characterize the mineralization for geological and resource modelling; and one hole planned to determine the characteristics and orientation of the broad intervals of gold mineralization previously reported in the highly prospective Pediment Target Area. A follow-up drill program will be designed based on the results from Phase 1.
About the Property
Fondaway is an advanced stage gold property with a large historic resource located in Churchill County, Nevada comprising 136 unpatented lode claims totaling 898 hectares (2,220 acres). Gold was first discovered in Fondaway Canyon in 1977 and over the intervening 40+ years has been the subject of multiple exploration campaigns totaling 735 reverse circulation and core drill holes, small-scale open pit mining of the oxidized zone at surface, and underground development limited to exploration and bulk sampling along one of the main gold mineralized shear vein zones.
Getchell can acquire a 100% interest in the Property under the terms of the Option Agreement by making certain cash payments and share issuances to Canarc, and incurring exploration expenditures on the Property. Upon exercise of the option Canarc will retain a 2% NSR on the property.
Fondaway is one of 11 mineral properties in the American Innovative Minerals (“AIM”) USA gold package acquired by Canarc in 2017 and is one of 4 AIM properties optioned out to third parties wanting to explore and earn interests in Canarc’s Nevada/Idaho portfolio. Canarc continues to receive expressions of interest in the remaining 7 AIM USA properties as well as the Corral Canyon project in Nevada.
Canarc is focused on creating shareholder value by advancing its attractive Canadian gold projects and acquiring new gold properties with exciting discovery potential.
Qualified Person
Garry Biles, P. Eng, President & COO for Canarc Resource Corp, is the Qualified Person who reviewed and approved the contents of this news release.
“Scott Eldridge”