Los Arrastres
Introduction:
The 7,638 hectare Los Arrastres properties are located in the state of Guanajuato, Mexico. The project surrounds the past producing Providencia and San Felix mine properties and were optioned from Grupo Mexico who previously conducted early stage exploration on the properties. Grupo Mexico discovered a third mineralized gold prospect area, El Payan, by drilling in 1991 but no work has been done on Los Arrastres since that time. Canarc recently completed geochemical soil surveys to outline substantial extensions to the San Felix and Providencia gold mineralized zones and drilling is expected to get underway in Q2, 2008.
The past producing Providencia and San Felix mines closed in 1934 as a result of the Mexican Revolution, and have been dormant ever since. Canarc's primary interest is to define new resources beyond the old mine workings.
Location and Access:
The Los Arrastres gold-silver project is located 15 km southwest of the town of San Felipe in the state of Guanajuato, Mexico. A new State highway and state power lines both cross the property, and international airport at Leon is only 30 km away.
The 8 km by 10 km property covers most of the Providencia mining district, which is located in the heart of the "Faja de Plata" (Mexican Silver Belt) about 45 km north of the famous Guanajuato silver-gold mining district. Here, the El Cubo (now Gammon Lake) Valenciana (now Great Panther) and Bolanitos (now Endeavour Silver) mines have recently been redeveloped into production.
Ownership:
Canarc can acquire a 100% interest in the 7,638 hectare Los Arrastres claims surrounding the Providencia and San Felix mine properties. Grupo Mexico will retain a 2% NSR from Los Arrastres (which Canarc can reduce to 1%).
Geology and Mineralization:
Geologically, the Providencia mining district is a classic, low sulfidation, epithermal vein camp located along the northwest edge of the Villa de Reyes graben (a major extensional fault structure) adjacent to a rhyodacite porphyry intrusion. The veins are hosted by deformed, thin bedded, Mesozoic lutites, limestones and andesites and by undeformed Tertiary andesites and rhyolites. Mineralization consists of native gold, silver and silver sulfosalts associated with quartz-chalcedony veins and related argillic-pyritic alteration zones. At high elevations, both vein systems host small mercury mines and showings.
Past Mining/Exploration:
In 1991, Grupo Mexico mapped 870 hectares on the Los Arrastres property collecteing 588 samples from the mineralized structures and 654 geochemical rock samples on a 100 m spaced grid; completed 20 km of Induced Polarization (I.P.) and resistivity geophysical surveys at El Payan; and drilled 11 holes mostly at El Payan. Four drill holes at El Payan intersected a blind, flat-lying, gold-silver chalcedony replacement zone within Tertiary rhyolites that averaged 0.3 grams per tonne Au gold and 20 grams per tonne Ag over a 30 m thickness.
Target Areas:
To date, there have been three main mineralized gold-silver structures identified on the property. All three remain open along strike and at depth. These include:
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Purisima, a silver-rich quartz vein system. It has been traced for more than 2.0 km along strike, consisting of two parallel veins, each 0.5 m to 3.0 m wide and roughly 15 m apart.
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Zamorana, is a gold-rich chalcedony vein system that has been mapped for more than 1.5 km along strike. It contains mercury veinlets towards the north; and a chalcedonic-argillic-iron oxide alteration zone extending well to the south.
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El Payan, another gold-rich chalcedony vein system, averages 2 m thick, and is exposed for 1.2 km along strike. It contains the 100 m deep El Payan shaft and a blind, flat-lying gold-silver chalcedony replacement zone that is up to 48 m thick discovered during the Grupo Mexico drilling project in 1991.
Future Work:
A Phase 1 drilling program will evaluate the depth potential of the two principle high grade low sulphidation epithermal vein targets on the Los Arrastres Property; the Purisima and San Felix. Drill-holes spaced 200 metres laterally along the trend of veining will test for it's continuity to a depth of 200 metres below surface. Limited drilling on the El Payan target will test the geophysical anomaly to depths in the order of 100 metres.
Dislaimer
Cautionary Note to US Investors- The United States Securities and Exchange Commission limits disclosure for US reporting purposes to mineral deposits that a company can economically and legally extract or produce. We use certain terms on this web site, such as "reserves, " "resources," "geologic resources," "proven", "probable", "measured", "indicated," or "inferred," which may not be consistent with the reserve definitions established by the SEC. U.S investors are urged to consider closely the disclosure in our Form 20-F, File No. 000-18860. You can review and obtain copies of these filings from the SEC's website at www.sec.gov/edgar.shtml.
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