Canarc Resource Corp. (CCM:TSX and CRCUF:OTC-BB) announces that the Phase 2 infill drill program on the New Polaris property in northwestern British Columbia has returned additional high grade gold intercepts that establish better continuity, thickness and grade of the C vein system.
Eight holes (for a total of 7733 ft or 2357 m of core) were drilled in October-November, 2005 on 100 ft (30 m) spacings to test the C vein system, starting a further 100 ft (61 m) down-dip and 100 feet along strike from last year’s Phase 1 infill drilling program. All eight drill holes intersected economically significant gold grades and vein widths.
Each hole intersected the C vein system over broad widths and each C vein intercept contains intervals of higher grade gold. The weighted average of the principal C vein intercepts is 0.41 oz per ton over 26.2 feet (14.2 grams per tonne over 8.0 meters), the hanging-wall C vein intercepts averaged 0.46 opt over 11.5 ft (15.8 gpt over 3.5 m) and the higher-grade principal C vein intervals averaged 0.81 opt over 7.6 ft (27.7 gpt over 2.3 m). True thicknesses are estimated to be 85% to 95% of the core lengths. The 2005 drill results are summarized in the attached table.
NEW POLARIS PROJECT - C VEIN SYSTEM – 2005 DRILL RESULTS
|
Hole |
Zone |
Hole Depth (feet) |
Length |
Gold |
|||
|
|
|
From |
To |
ft |
m |
opt |
gpt |
|
|
|
|
|
|
|
|
|
|
05-5500E-1 |
C vein (west) |
609.0 |
627.3 |
18.3 |
5.58 |
0.35 |
12.1 |
|
|
incl. |
617.5 |
621.3 |
3.8 |
1.16 |
0.88 |
30.2 |
|
|
|
|
|
|
|
|
|
|
05-5500E-2 |
C vein (west) |
689.0 |
699.7 |
10.7 |
3.26 |
0.26 |
8.9 |
|
|
incl. |
689.0 |
691.5 |
2.5 |
0.76 |
0.60 |
20.6 |
|
|
|
|
|
|
|
|
|
|
05-2000SW-4 |
C vein HW |
656.6 |
659.0 |
2.4 |
0.73 |
0.39 |
13.4 |
|
05-2000SW-4 |
C vein (east) |
857.4 |
882.7 |
25.3 |
7.71 |
0.51 |
17.4 |
|
|
incl. |
859.0 |
865.0 |
6.0 |
1.83 |
1.28 |
43.9 |
|
|
|
|
|
|
|
|
|
|
05-2000SW-5 |
C vein HW |
708.0 |
716.2 |
8.2 |
2.50 |
0.41 |
14.1 |
|
05-2000SW-5 |
C vein (east) |
791.0 |
809.5 |
18.5 |
5.64 |
0.63 |
21.6 |
|
|
incl. |
795.3 |
804.0 |
8.7 |
2.65 |
0.92 |
31.5 |
|
|
|
|
|
|
|
|
|
|
05-2000SW-6 |
C vein HW |
766.2 |
790.0 |
23.8 |
7.25 |
0.49 |
16.7 |
|
05-2000SW-6 |
C vein (east) |
856.0 |
873.0 |
17.0 |
5.18 |
0.53 |
18.2 |
|
|
incl. |
859.0 |
866.3 |
7.3 |
2.23 |
0.87 |
29.8 |
|
|
|
|
|
|
|
|
|
|
05-2100SW-3 |
C vein (east) |
701.9 |
732.0 |
30.1 |
9.17 |
0.29 |
9.9 |
|
|
incl. |
703.5 |
709.0 |
5.5 |
1.68 |
0.53 |
18.2 |
|
|
|
|
|
|
|
|
|
|
05-2100SW-4 |
C vein (east) |
728.0 |
767.0 |
39.0 |
11.89 |
0.57 |
19.7 |
|
|
incl. |
732.8 |
749.9 |
17.1 |
5.21 |
0.79 |
27.1 |
|
|
|
|
|
|
|
|
|
|
05-2100SW-5 |
C vein (east) |
757.5 |
808.0 |
50.5 |
15.39 |
0.25 |
8.7 |
|
|
incl. |
797.8 |
808.0 |
10.2 |
3.11 |
0.59 |
20.3 |
|
|
|
|
|
|
|
|
|
As shown on the accompanying Drill Hole Location Plan, the C vein system at New Polaris is intersected by a property scale fault, named the #1 fault. Based on the geology observed in both the extensive mine workings at New Polaris and in more recent exploration drill holes, this fault is interpreted as a hinge line between the easterly and northeasterly striking portions of the C vein. As such, portions of the C vein lying west of the fault are drilled with a north azimuth, while portions of the C vein lying east of the fault are drilled with a northwest azimuth.
Drilling on Section 2000SW continued down-dip from the Phase 1 drilling program last year. Previous drilling prior to 1993 targeted the vein at an oblique angle inconsistent with the current interpretation. Results from Holes 2000SW4, 5 and 6 have established better continuity of the principal C Vein, and also indicate better grade and thickness of the hanging-wall C vein compared to earlier drilling, especially in the deepest hole, 2000SW6, which intersected 0.49 opt Au over 23.8 feet.
Drilling on Section 2100SW continued down-dip from the Phase 1 drilling program below the deepest mine level and, in particular, tested an area where a 1990 drill hole suggested vein geometry inconsistent with that indicated by subsequent drilling. Closely spaced drill holes 2100SW3 and 2100SW4 greatly increase the confidence of vein continuity and thickness in this area. Hole 2100SW5 successfully outlined the C veins continuity into a 300 feet long gap in drilling on this section.
As shown on the accompanying Sections 2000SW and 2100SW, the C vein flattens below the deepest level (600) in the mine and has been drilled down-dip for 800 feet (244 m), still open at depth. The thicker richer gold intercepts in the flattened zone may be amenable to lower cost, modern mechanized mining methods as compared to the shrinkage stoping carried out historically in the steeper portions of the veins.
Section 5500E represents a 100 foot step-out to the west from the Phase I definition drilling. A greater than 200 foot down-dip gap in previous drilling was investigated with holes 5500E1 and 5500E2. Results indicate the vein thickness in this area is greater than that suggested by previous drill holes. A ninth drill hole, Hole 5500E3, veered off course in overburden and was therefore terminated.
Stated Bradford Cooke, President and CEO of Canarc, “Such consistently high grade drill intercepts from the Phase 2 infill drilling program have helped to establish better continuity, thickness and grade of the C vein system. Canarc now plans to complete the infill drilling (subject to financing) and optimize the conceptual mine plan at New Polaris in 2006 so the project can move into feasibility and permitting. Our goal is to build an initial 65,000 oz per year high grade gold mine at New Polaris over the next three years.”
James Moors, B.Sc., P.Geo, is the Qualified Person who supervised the 2005 drilling program on the New Polaris property. He has instituted a Quality Control sampling program of blanks, duplicates and standards to ensure the integrity of all assay results. All drill core was split by Canarc personnel at the New Polaris camp, and then flown to Vancouver for assay by ALS Chemex. The core samples were dried, crushed, split and a 30-gram sub-sample was taken for analysis. Gold content was determined by fire assay with a gravimetric finish on samples containing greater than 1 gpt Au, and other trace elements were analyzed by atomic absorption. ALS Chemex also uses its own standards for quality control checks.
Canarc Resource Corp. is a growth-oriented, gold exploration and mining company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF). The Company’s principal assets are its 100% interest in the New Polaris gold deposit, British Columbia and its 80% option on the Benzdorp gold property in Suriname. Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.
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On Behalf of the Board of Directors
CANARC RESOURCE CORP.
/s/ Bradford J. Cooke
Bradford J. Cooke
President and C.E.O.
For more information, please contact Gregg Wilson at Toll Free: 1-877-684-9700, tel: (604) 685-9700, fax: (604) 685-9744, email: invest@canarc.net or visit our website, www.canarc.net. The TSX Exchange has neither approved nor disapproved the contents of this news release.
CAUTIONARY DISCLAIMER – FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are “forward-looking statements”. We caution you that such “forward looking statements” involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company’s filings with Canadian and American Securities regulatory agencies. The Company expressly disclaims any obligation to update any forward-looking statements.