NEWS RELEASE
Engineering And Resource Studies Now Underway On New Polaris Gold Mine Project, B.C.
Vancouver, British Columbia, Canada, May 15 , 2003
Canarc Resource Corp. announced today that engineering and resource studies are now underway on the New Polaris gold mine project in northwestern British Columbia.
The purpose of the engineering study is to evaluate the various mine development alternatives and determine which options are the most economically viable. This work should allow the Board of Directors to make an informed decision on proceeding with a feasibility program and mine development.
Canarc Resource Corp. has retained the services of Mr. Bruce Bried, P.Eng. to conduct the engineering study. Mr. Bried has a wealth of experience and expertise in operating and managing high grade, underground gold mines. He spent 12 years as Chief Engineer and Mine Manager with Dickinson Mines Ltd., now Goldcorp, in Red Lake, ON, and 10 years with Homestake, as Mine Superintendent at the David Bell, ON, and Eskay Creek, BC, mines and General Manager at the Snip, BC and Lead, SD, mines.
Bruce will be focusing on engineering aspects such as mining method (longhole vs. shrinkage), underground access (ramp vs. shaft), processing plant (concentrate shipping vs. bioleach.), and transportation options (road vs. other). Concentrate shipping was not previously considered viable but in December 2002, the neighbouring polymetallic Tulsequah Chief mine project of Redcorp received its final approval certificate from the B.C. government which gave Redcorp the right to proceed with the development of their 2500 tpd mine and 165 km access road.
Canarc has identified other transportation options that may be viable prior to the completion of the Tulsequah Chief road. We have also received expressions of interest from two companies with existing, under-capacity ore processing facilities in North America to purchase gold concentrates from New Polaris. Shipping concentrates, instead of on-site ore processing, could substantially reduce the anticipated capital and operating costs of the project.
The goal of the resource study is to refine the ore model and produce a new estimate of reserves and resources that is compliant with N.I. 43-101. The new model can then be used in the engineering study.
Canarc has retained the services of Roscoe Postle Associates Inc. to complete the resource study. Roscoe Postle has specialized in ore reserve estimation for over 20 years and has a wealth of experience and expertise in conducting resource studies on high grade underground gold mines.
Canarc personnel will work with Roscoe Postle in rebuilding the ore deposit model so that in addition to achieving the best possible geological fit, the Company can also determine what portions of the deposit can most readily be drilled to move resources into reserves and add new resources to the estimate.
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 is currently focused on developing the high grade New Polaris gold deposit in British Columbia and exploring the potentially large Benzdorp gold discovery in Suriname. Major shareholders include Barrick Gold and Kinross Gold Corporation.
ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.
Bradford J. Cooke
President and CEO
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