Canarc cuts more gold at Benzdorp (November 27, 2003)

Vancouver — Canarc Resource (CCM-V) has released more drill results from the JQA prospect from its Benzdorp property in Suriname.

The 1,380-sq.-km Benzdorp property is situated 300 km southeast of Parimaribo, Suriname’s capital. It can be accessed by a charter flight to the Tabiki airstrip or by boat up the Marowijne river and then by ATV on property roads.

A phase 1 drilling campaign will resume at the Benzdorp property later this month. In the current drill program, Canarc expects an additional 10 holes to be drilled before year-end using a small Hydracore drill rig. The program will test the extensions of the JQA mineralization to the east, as well as to test the Roche Kreek prospect to the south.

Results form drill holes BZ03-18, 19, 20 and 21 are as follows:

• Hole BZ-18 cut 67.80 metres averaging 0.57 gram gold per tonne, starting from surface. This included a 39.62-metre interval that averaged 0.73 grams gold.
• Hole BZ-19 cut 16.76 metres averaging 0.42 gram gold, starting from surface.
• Hole BZ-20 cut 30.48 metres averaging 0.78 gram gold, starting from surface. This included a 6.10-metre section that assayed 1.41 grams gold.
• Hole BZ-21 cut 16.76 metres averaging 0.45 gram gold starting form surface.

All of the holes intersected porphyry-type, stockwork mineralization. This latest fence of holes have extended the width of the JQA mineralized zone to 600 metres. It still remains open to the east and west. Drill holes BZ-22 and 23 failed to intersect mineralization 400 metres to the north. Canarc states that the mineralized zone appears to trend west of these two drill holes beneath Pointu Kreek.

Canarc reports that core recoveries in holes BZ-18 to 23 averaged only 76% and bedrock was not reached in holes BZ-19 and 21, due to difficult ground conditions. The company points out that cores losses in the mineralization imply gold losses as well, so the assays may understate the actual gold grades in saprolite.

Canarc states that a geologically analogous porphyry deposit to Benzdorp is the Boddington project held by Newmont Mining (NEM-N), Anglo Gold (AU-N) and Newcrest Mining in Western Australia. Current reserves at Boddington are estimated to be approximately 400 million tonnes grading 0.8 gram gold per tonne and 0.12% copper. The Boddington deposit represents a structurally controlled, intrusion related gold-copper deposit of Archean age.

Canarc owns 40% of Benzdorp and holds an option to earn up to 80% by paying US$300,000 to Grassalco, the state mining company, spending US$3 million on exploration and delivering a positive feasibility study. Grassalco, will ultimately own 20% of the project which gives it the right to receive either a floating net smelter return of 1.5% to 6%, rising with the price of gold, or a 20% net profits interest, which kicks in after Canarc recovers all of its capital investment plus interest.

To date, the junior has identified 12 gold targets on just 5% of the property. The high priority targets include the JQA and Roche Kreek porphyry gold-copper prospects, as well as gold prospects with high grade shear-vein mineralization, dubbed JQS, JQW, JQB and Pointu Kreek.

The JQW and JQS and Pointu Kreek prospects host gold mineralization in shear zones and veins that trend in a northeasterly direction. Gold occurs with sulphide and oxide minerals in quartz-calcite veins as well as in replacement bodies within the shear zones. The Roche Kreek anomaly lies 4 km to the south of the main JQA anomaly and measures 700 metres long and up to 280 metres wide. It remains open to the north and south.