Canarc outlines gold anomalies in Suriname

Three large gold soil anomalies have been found on the Kaka grid at Canarc Resources’ (TSE) Sara Kreek property in Suriname.

The grid covers 11% of the 22,500-hectare property, which was the second-largest gold-producing area in the country, with reported production of more than 16 tonnes.

The Breakfast anomaly, which measures 800 metres wide by 1,600 metres long, is open to the north and east and contains peak values of up to 8.2 grams gold per tonne.

The Parbo anomaly is 250 metres long by 100 metres wide, open in all directions, and has returned values of up to 3.81 grams gold. The Parrot anomaly, which is 1,400 metres long by 1,200 metres wide, is open to the east and runs up to 1.99 grams gold.

Follow-up prospecting within the Parrot located numerous rock samples containing visible gold. Of the 105 samples collected, 75% were anomalous in gold, yielding values greater than 0.1 gram, and 36% returned significant gold values exceeding 1 gram. Previous alluvial workings and three old adits were also discovered and sampled.

A phase-2 follow-up program of deep augering, machine trenching and diamond drilling is under way in an effort to define the three anomalies further. In addition, line cutting and soil sampling have been extended to a new area of surface gold workings known as the Toko Toko grid.

Canarc can earn an 80-100% interest in any bedrock gold deposit at Sara Kreek, subject to a 20% net profits interest, or a floating net smelter return royalty.

Elsewhere on the property, the alluvial mining program operated by Canarc’s joint-venture partner, Suriname Wylap Development NV, has progressed to trial mining and plant testing. Full-scale gold production is scheduled for startup in December, at an initial rated capacity of 8 kg gold per month. Canarc owns a half interest in any alluvial gold deposit to be mined by Wylap (after receiving full payback, with interest, on the startup capital lent to Wylap).

Kenrich funds Corey program

VANCOUVER — VSE-listed Kenrich Mining has announced a private placement which will enable it to finance exploration of the Corey property in northwestern British Columbia.

The placement, which consists of 2 million non-flow-through units at 50 cents each plus 1.5 million flow-through units at 52.5 cents per unit, is expected to close shortly. Following the issue, the company will have about $2 million in working capital and 18.6 million shares outstanding.

The property comprises 83,000 acres of contiguous ground in the Eskay Creek-Sulphurets region.

This past summer, preliminary exploration was carried out on three main zones, and the work will continue this winter, albeit on a reduced scale. Initially, work will be concentrated on the TV zone, a low-grade, bulk-tonnage target.

The program will include detailed surveying, rock sampling and trenching in preparation for a 3-to-5-hole program.

Chairman Ken Trociuk expects to boost exploration next spring with a 50-to-60-hole program.

Santa Elina ups stake in Arauco

VANCOUVER — Santa Elina Gold has become the largest shareholder in Arauco Resources (VSE).

The privately owned company holds a 51% interest, including warrants to buy additional shares over two years. This follows Santa Elina’s completion of a $2.4-million private placement of Arauco shares and acquisition, through an exempt takeover bid, of 3.4 million shares from the five largest shareholders (Teck (TSE), Rea Gold (TSE), Princeton Mining (TSE), International Northair Mines (VSE) and St. Mary Minerals.) These companies, in turn, will become shareholders of Santa Elina.

Santa Elina produces 36,000 oz. gold annually from its Sao Vicente mine in Brazil and has extensive land holdings in that country and in Bolivia. It recently completed a US$22.5-million private placement and plans to seek a public listing on the Toronto Stock Exchange.

For its part, Arauco will continue exploring its 12 properties in Chile. It is participating in the Aisen exploration project in southern Chile with partners University of Chile and InterAmerican Development Bank. The US$2.3-million program is in its second year.