< Previous Next >
Trading Symbol TSE:CCM
NEWS ANNOUNCEMENT ---------- FOR IMMEDIATE RELEASE
Third Quarter Report to Shareholders
November 26, 1997
Vancouver, British Columbia, Canada, November 26, 1997....Canarc
Resource Corp. is pleased to announce its Quarterly Report for the
period ending September 30, 1997.
HIGHLIGHTS
-
Canarc intersects best drillhole ever at New Polaris - .42 oz./ton gold
over 112.2 ft
-
Canarc options two Indonesian properties with Rio Tinto (RTZ:NYSE)
-
Canarc options the Kwitaro property in Guyana with Cyprus Amax (CYM:NYSE)
-
Additional trenching returned 0.91 gpt/gold over 142 m confirming an extension
to the large gold zones on Benzdorp concession
-
A 412% increase in gold production totalling 2,051 oz. for the first half
of 1997 at the Sara Kreek property
INTRODUCTION
Canarc continued with its New Strategy, post Bre-X, to conserve its
working capital and accelerate discussions with major mining companies
to joint venture several of Canarc's properties. As a result of that
focus, Canarc successfully closed two joint ventures; with Cyprus Amax
Minerals on the Kwitaro property in Guyana, South America, and with Rio
Tinto Mining on our Gatec and Hatec properties in Indonesia. Should
Cyprus Amax and Rio Tinto completely vest their interests in these two
agreements the cash payments and work obligations would total in the US$10's
of millions to Canarc, including US$9 million within the next 4 years.
Management anticipates further JV announcements in the 4th Quarter of 1997.
NEW POLARIS (B.C. 100% CANARC)
In July Canarc reported its best drill intersection to date at New
Polaris, returning .42 oz/ton gold over 112.2 ft. core length. The
Company was pleased to report that the B.C. Government's Environmental
Assessment Office (EAO) has accepted Redfern Resource's Project Report
for their Tulsequah Chief Property. This is a major step forward
in Redfern's mine permitting process and should favorably impact Canarc's
permitting process for the New Polaris property which is located adjacent
to Redfern's Tulsequah Chief project in northwestern British Columbia.
A summer break in activities at the mine site has allowed our geologists
to compile the data from our recent drill program. A detailed, computer-based
resource model is now being assembled that will identify the key remaining
areas for infill drilling to develop mineable reserves in the next drill
program. Environmental, native and engineering studies also continued
during the quarter.
SARA KREEK (80% CANARC)
The Company was pleased to announce an increase in gold production
at the Sara Kreek mine in South America. For the first six months
ending June, 1997, raw gold production totalled 2,051 oz., an increase
of 412% over the same period for 1996. Annual production for 1997
is now projected to exceed 4,500 oz., or double of last year's production
of 2,200 oz.
BENZDORP (80% CANARC)
Continued bulldozer trenching has extended the size of the large anomalies
on the Benzdorp property. The JQA bulldozer trench has now been extended
a further 66 m east and is now grading .91 gpt over a 142 m width. Additional
augering on this 750 m long by 250 m wide gold porphyry target has confirmed
that the mineralization is still open in all directions. Additional trenching
and augering on the JQS zone has also confirmed strong gold mineralization
in saprolite which could very well be a southern extension of the JQA gold
zone. (Also, please refer to our News
Release dated November 13, 1997.)
MANAGEMENT
Management's focus on enhancing Canarc's cash position continues to
be a priority. The sale of some marketable securities, a consulting
fee converted to shares, and employee layoffs are some of the steps management
has taken to conserve cash. We anticipate adding significantly to
our working capital through additional joint ventures on our key projects.
FINANCIAL
On September 30,1997, Canarc had cash and cash equivalents of US$624,000.
The nine month loss of US$3.984 million includes mineral property write-downs
of US$3.018 million, including a cumulative US$0.6 million write-down on
our Indonesian properties in the first and second quarter and a US$2.418
million write-down on a Guyana property in the third quarter.
Following savings measures announced at the end of June of this year,
savings of 47% over the previous quarter were obtained by reducing administrative
and other corporate costs to US$263,000 in the third quarter from US$498,000
in the second quarter.
Canarc Resource Corp. is a growth-oriented, international gold
exploration and mining company with active projects worldwide. Major shareholders
include Barrick Gold Corp. and Echo Bay Mines Ltd. The Company's common
shares trade under the symbol "CCM" on the Toronto Stock Exchange as well
as on the following exchanges: Vancouver: Vista-CCM, Frankfurt: Third Market
Segment-CAN, Berlin: Over the Counter-CAN, NASD: Electronic Bulletin Board-CRCUF.
For further information contact Robert Carriere, Investor Relations at (604) 685-9700 or visit our website: www.canarc.net.
For further information, contact:
Robert Carriere
Manager of Investor Relations
Tel: (604) 685-9700
