$1-million drilling program under way at Polaris-Taku

Drilling is now under way at the Polaris-Taku gold property, about 65 miles south of Atlin, B.C.

Suntac Minerals (VSE) is earning a 60% interest in the property from Rembrandt Gold Mines (ASE). To date, Suntac has spent about $2.5 million of the $3 million required to earn the interest.

The 2-phase drilling program, budgeted at $1 million, will test the extent of the C and Y vein systems. Both remain open along strike and downdip.

The first phase of the drilling program includes an estimated 10,000 ft. in 10 holes and will test the two vein systems from 600 to 1,200 ft. below surface.

The Polaris-Taku operated from 1938 to 1951 producing in the order of 230,000 oz. gold from ore grading an estimated 0.47 oz. gold per ton.

Drilling to date on the two veins outlined an estimated preliminary reserve of 1.6 million tons grading 0.45 oz. gold. However, the gold is associated with arsenopyrite which complicates the recovery process with the need for a roaster or pressure leaching process.

The deepest drilling on the C vein, a high-grade oreshoot, returned 0.58 oz. gold over 13.2 ft. at a depth of about 900 ft. below surface.

The Y vein has been intersected at a depth of 750 ft. with a 9.44-ft. intersection grading 0.43 oz. gold.

Canarc Resources (VSE) is in the process of acquiring a 37% control block in Suntac Minerals through a number of transactions. The company expects to receive shareholder approval for the move at a special meeting scheduled for July 30.

Canarc currently has about 4.8 million shares outstanding (5.5 million fully diluted) and about $700,000 in working capital. The company is in the process of completing a unit offering to raise $1.5-3 million.