Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN), announces that its recent reverse circulation (“RC”) drill program on the Hard Cash property in southwestern Nunavut, Canada intersected narrow, low grade intervals of gold mineralization and failed to confirm the potential for a significant, shear zone-hosted, orogenic gold discovery. As a result, Canarc has terminated its option agreement with Silver Range Resources Ltd.
Phase 1 Drill Program
In August, 2020, the Company completed a Phase 1, 7-hole, 1,019 meter reverse circulation (“RC”) drill program to test the Swamp and Dryland gold showings at Hard Cash. The holes were drilled in a southeasterly direction across the northeasterly strike of the shear zone with lines spaced at 200m intervals and drill collars from 50 to 150 meters along lines over the two prospect areas. The drill holes were inclined at 45 degrees testing the targets perpendicular to the shear zone down to a planned depth of 150 meters.
A total of 662 RC chip samples were collected from the seven drillholes. The results of the RC drilling confirmed gold mineralization over a strike length of 1.5 kilometers. The drill results appear to confirm an alternative ore model of widespread shearing and alteration containing remobilized gold in veins within the thermal aureole of an intrusive stock to the south and east of the Swamp and Dryland gold showings. The drill results do not appear to be indicative of a significant, shear zone-hosted, orogenic gold discovery (Table 1).
Table 1: Significant Drill Results
| Hole | *From m | *To m | *Length m |
Au gpt | Ag gpt | **AuEq gpt |
| HC-20-RC-01 | 90.0 | 93.0 | 3.0 | 3.12 | 7.00 | 3.21 |
| HC-20-RC-02 | 132.0 | 133.5 | 1.5 | 3.32 | 10.8 | 3.45 |
| HC-20-RC-03 | 81.0 | 87.0 | 6.0 | 1.53 | 5.63 | 1.60 |
| HC-20-RC-04 | 58.5 | 60.0 | 1.5 | 1.10 | 0.51 | 1.10 |
| HC-20-RC-07 | 136.5 | 138.0 | 1.5 | 5.04 | 5.80 | 5.11 |
* The “From”, “To” and interval “Length” are provided as down hole measurements and are not true width of mineralized zones, which is unknown at this time.
**Ag:Au ratio is 80:1
QA/QC Program
A rigorous Quality Assurance and Quality Control (“QA/QC”) program was implemented as part of the sampling procedures throughout the drill program to monitor the integrity of the assay results. Standard samples of Certified Reference Material (“CRM”), duplicate and blank samples were inserted into the sample stream prior to being sent to the laboratory and the adherence of results to strict parameters was monitored. The RC drill chips were collected at 1.5 meter intervals and a representative sample was acquired by passing the chips through a cascading riffle splitter in the field. The samples were shipped to ALS Canada Ltd. lab in Yellowknife, NT lab for processing where they were dried, crushed, split and pulverized producing a 250g pulp for analysis. The pulps were analyzed at the Vancouver, BC by 0.5g Aqua Regia Digestion ICP-MS method for 51 elements including gold. Where the ICP gold analysis exceeded 100 ppb the samples were analyzed for gold by 30g Fire Assaying with an ICP-AES finish. ALS Canada Ltd. is accredited by the Standards Council of Canada and is an ISO/IEC 9001:2015 and 17025:2017 certified analytical laboratory in North America.
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”