Drilling has expanded the Polaris Taku gold resource in Alaska by 10%, Canarc Resource (CCM-T) reports.
The program increased the probable and possible resource to 3.9 million tons grading 0.41 oz. gold per ton. As a result, the geological resource has risen to 1.6 million from 1.4 million oz. gold.
As part of a $6.5-million feasibility program, now under way, a 200-hole program of underground drilling has succeeded in extending the Serpentine and D gold zones.
Highlights from the Serpentine zone include intersections of 0.49 oz. gold per ton over 17.4 ft. in hole 24, and 0.3 oz. over 8.7 ft. in hole 7.
Drilling in the D zone intersected 0.26 oz. over 26 ft. in hole 13, and 0.38 oz. over 10 ft. in hole 11.
The company is attempting to increase the geological resource to nearly 2 million oz. gold, with minable reserves projected at 720,000 oz. Canarc says such a reserve, while not yet confirmed, would allow for a mine life of eight years, beginning in 1999.
In a related development, British Columbia’s chief gold commissioner has thrown out Ecstall Mining’s (EAM-V) claim to the 600-acre North 1 property, which adjoins Polaris. The ruling settles a 2-year dispute in Canarc’s favor.
Meanwhile, Canarc has launched an Indonesian subsidiary, which will own and operate all its mineral projects in that country. The subsidiary is currently known as Atec (Barbados) but is expected to change its name to IndoAsia Gold.
It currently holds all of Canarc’s interests in 13 contracts of work totalling 1.9 million ha on the island of Kalimantan.
Atec proposes to issue 8.5 million units to Canarc, each of which would consist of one Atec share and half an Atec share purchase warrant. Canarc has arranged $2.6 million in financing for Atec.
A first phase of exploration, budgeted at US$4.1 million for 1997, is under way on all 13 properties.
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