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Canarc Reports Updated NI 43-101 Resource Estimate For New Polaris Gold Project, British Columbia


February 1, 2007

Canarc Resource Corp. (TSX: CCM: OTC-BB: CRCUF, DBFrankfurt: CAN) announces that it has received an updated, independent, NI 43-101 compliant resource estimate for the New Polaris gold project, northwestern British Columbia.

Summary

Measured and indicated undiluted resources range from 570,000 to 457,000 oz of gold contained in 1,670,000  to 1,009,000 tonnes (1,840,861 to 1,112,233 tons) of mineralized vein material grading 10.6 to 14.1 grams per tonne (0.31 to 0.41 oz per ton) using a range of cutoff grades from 2 to 8 gpt (0.06 to 0.23 opt).  Greater than 95% of the measured and indicated resources are located within the C vein system where infill drilling programs were conducted over the past three years.

Inferred undiluted resources range from 697,000 to 571,000 oz of gold contained in 2,060,000 to 1,340,000 tonnes (2,270,763 to 1,477,098 tons) of mineralized vein material grading 10.5 to 13.3 grams per tonne (0.31 to 0.39 oz per ton) using a range of cutoff grades from 2 to 8 gpt (0.06 to 0.23 opt).  Approximately 75% of the inferred resources are also located within the C vein system, with the remainder attributable to the Y19 and Y20 veins.

MEASURED UNDILUTED RESOURCE

 

Cutoff  Grade

Mineralized Tonnage

Average Grade

Contained Gold

(g/tonne)

(oz/ton)*

(tonnes)

(tons)

(g/tonne)

(oz/ton)

Au (oz)

 

 

 

 

 

 

 

2

0.058

390,000

429,902

9.48

0.277

119,000

4

0.117

330,000

363,763

10.62

0.310

113,000

6

0.175

271,000

298,727

11.89

0.347

104,000

8

0.233

203,000

223,769

13.54

0.395

88,000

 

INDICATED UNDILUTED RESOURCE

 

 

 

 

 

Cutoff  Grade

Mineralized Tonnage

Average Grade

Contained Gold

(g/tonne)

(oz/ton)*

(tonnes)

(tons)

(g/tonne)

(oz/ton)

Au (oz)

 

 

 

 

 

 

 

2

0.058

1,280,000

1,410,960

10.97

0.320

451,000

4

0.117

1,180,000

1,300,728

11.65

0.340

442,000

6

0.175

1,017,000

1,121,052

12.71

0.371

416,000

8

0.233

806,000

888,464

14.22

0.415

368,000

 

MEASURED PLUS INDICATED UNDILUTED RESOURCE

 

 

 

 

Cutoff  Grade

Mineralized Tonnage

Average Grade

Contained Gold

(g/tonne)

(oz/ton)*

(tonnes)

(tons)

(g/tonne)

(oz/ton)

Au (oz)

 

 

 

 

 

 

 

2

0.058

1,670,000

1,840,861

10.62

0.310

570,000

4

0.117

1,510,000

1,664,491

11.42

0.333

555,000

6

0.175

1,288,000

1,419,778

12.54

0.366

519,000

8

0.233

1,009,000

1,112,233

14.08

0.411

457,000

 

INFERRED UNDILUTED RESOURCE

 

 

 

 

 

Cutoff  Grade

Mineralized Tonnage

Average Grade

Contained Gold

(g/tonne)

(oz/ton)*

(tonnes)

(tons)

(g/tonne)

(oz/ton)

Au (oz)

 

 

 

 

 

 

 

2

0.058

2,060,000

2,270,763

10.5

0.307

697,000

4

0.117

1,925,000

2,121,951

11.0

0.322

683,000

6

0.175

1,628,000

1,794,564

12.2

0.354

636,000

8

0.233

1,340,000

1,477,098

13.3

0.387

571,000

       
         *             ton equals short dry ton

Bradford Cooke, Chairman and CEO, commented, “This updated NI 43-101 resource estimate was a key first step in advancing the New Polaris gold project towards the feasibility stage. We are thrilled to beat our minimum resource target, even though we only infill drilled the C vein system to a depth of just 500 m and did not drill any of the other historic resource areas in the Y and AB veins, which are mostly at shallower depths.”

2007 Proposed Work Program

The first goal of the recent infill drilling programs at New Polaris was to establish a minimum 650,000 oz NI-43-101 compliant gold resource in all categories.  Canarc has well exceeded this initial resource target so work is now underway to complete a conceptual mine plan, initial economic assessment and government permit application in Q1, 2007.

Subject to receiving positive results, Canarc plans to carry out an aggressive 2007 work program  of mine dewatering, underground development, diamond drilling, bulk sampling, metallurgical testing, environmental studies and related work necessary to complete a feasibility study.

An Alimak raise climber was recently reinstalled in the mine shaft and the mine dewatering program is now underway.  The lowest mine level 600 should be open within three months, at which time the proposed 2007 development and bulk sampling program will commence.

Resource Calculation Methodology

The resource estimate was prepared by Giroux Consultants Limited using ordinary kriging of 192 recent drill holes and 1,432 gold assay intervals constrained within 4 main vein segments as modelled in three dimensions by Canarc geologists. The total New Polaris data base consists of 1,056 diamond drill holes with a total of 31,514 sample intervals. 

The geologic continuity of the C vein system has been well established through historic mining and diamond drilling.  Grade continuity was quantified using a geostatistical method called the semivariogram, which measures distances (ranges) and directions of maximum continuity.  The four principle veins in the semivariogram model produced ranges between 50 and 90 metres, both along strike and down plunge.
 
For this study, the classification for each resource block was a function of the semivariogram range.  In general, blocks estimated using ¼ of the semivariogram range were classed as measured, blocks estimated using ½ the semivariogram range were classed as indicated and all other blocks estimated  using the full semivariogram range were classed as inferred.

A review of gold grade distribution outlined 6 overlapping lognormal gold populations within the resource data base.  On this basis, a total of 10 gold assays were capped at 63 g/t. 

Historic Resource Estimates

In addition to the new NI 43-101 resource estimate, two historic resource estimates cover other veins within and beyond the old mine workings on the New Polaris property (see table below).

Beacon Hill (1988) estimated probable and possible resources for the AB vein system within the old mine workings based on historic underground drilling and sampling, a 5 foot minimum mining width and a 0.15 oz per ton cutoff grade. Giroux (1995) estimated probable and possible resources for the Y veins beyond the old mine workings based on surface drilling by Canarc and its predecessors, no minimum mining width and a 0.25 oz per ton cutoff grade.

New Polaris Historic Resource Estimates

 

Probable Resources

Possible Resources

Zone

In-Situ

Diluted

In-Situ

Diluted

 

Tons

Grade

Tons

Grade

Tons

Grade

Tons

Grade

(SDT)

(oz/SDT)

(SDT)

(oz/SDT)

(SDT)

(oz/SDT)

(SDT)

(oz/SDT)

Beacon Hill (1988)

Up Levs.

53,440

0.37

67,800

0.29

41,560

0.35

53,450

0.27

Lo Levs.

50,170

0.50

64,410

0.39

45,000

0.48

58,760

0.37

Subtotal

103,610

0.43

132,210

0.33

85,560

0.42

112,210

0.32

Giroux (1995)

Y Zone

210,000

0.461

262,500

0.369

987,000

0.469

1,124,000

0.375

The Beacon Hill (1988) historic resource estimate utilized data from historic information and represents a resource completely separate from the current NI 43-101 resource estimate.The Giroux (1995) historic resource estimate was made on a partially separate data base for the Y vein system but there are numerous drill intercepts in multiple Y veins from Giroux (1995) not included in the current NI 43-101 resource estimate.

Therefore, the Beacon Hill (1988) and Giroux (1995) historic resource estimates may be considered relevant even though Canarc has not verified the classification of these resources.  They are referred to here because they represent additional areas with gold vein potential on the New Polaris property.

The probable and possible historic resource categories correspond roughly to the indicated and inferred current resource categories. Canarc is not treating these historic resources as current resources, and they should not be relied upon. 

James Moors, B.Sc., P.Geo, Vice President, Exploration, is the Qualified Person responsible for the  project QA/QC, infill drilling, and geological modelling on the New Polaris property.  Gary Giroux,  MASc., P.Eng. is the Qualified Person who prepared the updated NI 43-101 resource estimate.

Canarc Resource Corp. is a growth-oriented, gold exploration company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF).  The Company’s New Polaris gold project in north-western British Columbia is one of the largest undeveloped high grade gold deposits in Western Canada.  Canarc’s focus is now on advancing New Polaris to the feasibility stage and acquiring attractive near-term gold mining projects.  Barrick Gold Corp. is a shareholder.

CANARC RESOURCE CORP.
Per:

/s/ Bradford J. Cooke

Bradford J. Cooke
Chairman 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: [email protected] 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.  We seek safe harbour.

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