2002
SHAREHOLDER UPDATE
Having just returned from the San Francisco Precious Metals Conference, I thought you might be interested in some of the comments from various gold market experts:
Jim Dines, "The Dines Letter"
"When gold breaks out, and it is going to breakout soon, the gold price is not going to stop at $350 or $500 per oz. The psychology of the masses could propel gold as high as $3,000 to $5,000 per oz!"
Doug Casey, "International Speculator"
"It's time to buy both gold and silver bullion in size and with abandon. It's also time to buy into the junior mining shares. Sure, they could lost another 25% after the mauling they've had. But the chances are better they'll gain 500% over the next couple of years. I'll take those odds."
Dave Skarica, "Addicted to Profits"
"Right now gold is in a consolidation from the summer highs,...we expect this could continue a while longer. However, we suspect if gold is going to rally and take out the June high of US $330 per oz, it will do so in the first or second quarter of next year."
Bob Chapman, "The International Forecaster"
"Mark your calendars, things political, economic, technical and fundamental will all come together by mid-December for an explosion in gold and silver prices and shares."
The conference was very upbeat for the first time in years and the full house was strong evidence that investors are starting to come back to gold and gold shares. Perhaps the comments last week from Ben Bernanke, Governor of the Washington Federal Reserve Bank, regarding the bank's options for fighting deflation give some weight to the bullish gold predictions. He stated the Fed would:
1) Print money, to increase the prices of goods
2) Buy domestic assets, including treasuries, bonds and stocks, to create liquidity
3) Reduce interest rates to banks, to spur capital and consumer spending
4) Buying foreign assets, to push down the value of the US dollar.
Stated Mr. Bernanke, "A striking example from US history is Franklin Roosevelt's 40% devaluation of the dollar against gold in 1933-34, enforced by a program of gold purchases and domestic money creation." Yes, he actually said that! Maybe that is why yesterday, Merrill Lynch advised investors to reduce their equity allocations, causing the gold price to rise above $320 per oz once again.
As you know, I called the first leg up in the new gold cycle at this time last year. More recently, I pointed out that the current correction in gold cannot last much longer. The gold bullion chart is now just as compelling as it was last year. There is a large pennant formation that should terminate in an upside breakout within the next 6 to 8 weeks.
Canarc has been quietly preparing for such a breakout. Trenching at the Benzdorp project in Suriname is now well underway, about 250 linear meters having been completed to date. Initial assays will be available in January. Over 500 linear meters of trenching should be completed under the current program by late January, at which time Canarc should have a substantial drill target.
ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.
Bradford J. Cooke
President and CEO NOTE: If you have an E-Mail address and would prefer to receive Canarc's
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