Canarc Resource Corp. (CCM : TSX and CRCUF : OTC-BB) announces that the final results of the 2004 drill program from the JQA prospect on the Benzdorp property in Suriname, including hole BZ04-51 not previously released, returned several significant gold intercepts.
In 2004, Canarc Resource Corp. completed 3984 m of diamond drilling in 13 holes (BZ04-39 to 51) at the JQA prospect on the Benzdorp property. The main goal of the program was to test a portion of the known 500 m by 500 m area of saprolite-hosted, porphyry-gold mineralization down into bedrock.
All thirteen holes encountered significant porphyry gold mineralization in saprolite starting at surface. Of the eleven holes that penetrated bedrock, eight holes (BZ04-39, 42, 45-48, 50-51) intersected strong porphyry gold-copper, stock-work mineralization over a 200 m by 200 m area, successfully extending the JQA mineralized zone up to 350 m in depth.
Drilling highlights, including the final 2004 hole BZ04-51 (not previously released), are as follows:
|
Hole (No.) |
From (m) |
To (m) |
Length (m) |
Gold (gpt) |
|
BZ04-39 |
0.00 52.00 88.00 |
169.00 EOH 64.00 98.50 |
169.00 12.00 10.50 |
0.60 1.08 1.01 |
|
BZ04-42 |
0.00 0.00 |
400.81 EOH 120.40 |
400.81 120.40 |
0.48 1.14 |
|
BZ04-45 |
0.00 0.00 |
315.47 24.38 |
315.47 24.38 |
0.45 1.01 |
|
BZ04-47 |
0.00 | 237.69 | 237.69 | 0.52 |
|
BZ-04-51 |
0.00 0.00 |
256.03 44.20 |
256.03 44.20 |
0.55 1.09 |
The porphyry gold mineralization in each of these holes starts at surface, implying a very low strip ratio of waste to ore. Higher grade gold mineralization was typically intersected in the near surface, oxidized saprolite and two of the holes bottomed in ore-grade mineralization in bedrock. The JQA mineralized zone is wide open along strike, and to a certain extent at depth.
Copper mineralization is a bit more intermittent than the gold mineralization. It is typically leached out of the saprolite, and grades 0.1% to 0.2% Cu over 20 m to 220 m intervals in the bedrock. One of the better holes, BZ04-50, returned 0.1% Cu over 224.0 m, including 0.29% Cu over 18.29 m.
The Benzdorp property displays some distinct geologic similarities to the 10 million oz Boddington porphyry gold-copper deposit (400 million tonnes @ 0.8 gpt Au and 0.12% Cu) now being developed by Newmont / Anglogold / Newcrest in western Australia. However, certain gold deposits in South America might be more comparable from a mine operating point of view.
The potential for low cost, open pit, heap leaching of soft saprolite, low grade, gold mineralization as discovered at Benzdorp is highlighted by the 1 million oz. Sao Francisco deposit now being developed by Yamana in Brazil. Yamana is investing US $46 million in capital to develop an 11,000 tonne per day, heap leach gold mine with anticipated operating costs of US $190 per oz. Yamana’s ore reserves are estimated at 48 million tonnes grading 0.67 grams per tonne gold with 80% gold recoveries.
The potential for low cost, bulk mining of bedrock, low grade, gold-copper ores as discovered at Benzdorp is exemplified by the 2.1 billion lb, 2.5 million oz. Chapada porphyry copper-gold deposit is also being developed by Yamana in Brazil. Capital costs are estimated at US $155 million to build a 35,000 tonne per day, open pit copper-gold mine producing a flotation concentrate at an approximate US $175 per oz gold eq. operating cost. Yamana’s ore reserves are 310 million tonnes grading 0.34% copper and 0.25 grams per tonne gold, with anticipated recoveries of 88% for copper and 53% for gold.
In 2005, Canarc plans to further assess the metallurgical characteristics of saprolite and bedrock mineralization from the JQA prospect in order to determine the viability of gold recovery by heap leaching vs. CIL leaching vs. gravity and flotation. Preliminary metallurgical testing was completed in 2004 and the results will be released shortly.
Canarc also plans to conduct a Phase 3 drilling program of about 3000 m in approximately 15 holes in order to extend the area of JQA mineralization in bedrock and to test other targets. The Company is conducting due diligence property tours with major gold companies at this time with a view to a possible strategic partnership or financing in order to move the Benzdorp project forward.
Godfrey Walton, M.Sc, P.Geo., is the Qualified Person who supervised the Phase 2 drill program on the Benzdorp property. He instituted a Quality Control sampling program of blanks and duplicates to monitor the integrity of all assay results. All drill core is split by Canarc personnel at the Benzdorp camp and flown to the Inspectorate-affiliated commercial laboratory in Paramaribo, Suriname. Core samples are dried, crushed, split and a 30 gram sub sample is taken for analysis. Gold was determined by fire assay with an atomic absorption (AA) finish. Copper was also measured by AA. Selected samples were sent to Chemex laboratories in Vancouver, BC, for additional quality control.
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 in British Columbia and its 80% option on the Benzdorp gold property in Suriname. Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.
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: 877-684-9700, tel: (604) 685-9700, fax: (604) 685-9744, email: invest@canarc.net or visit our website, www.canarc.net. The TSX has neither approved nor disapproved the contents of this news release.
For more information, please contact Gregg Wilson at Toll Free: 877-684-9700, tel: (604) 685-9700, fax: (604) 685-9744, email: or visit our website, . The TSX has neither approved nor disapproved the contents of this news release.