Canarc Resource resumes drilling on Guyanese property

Drilling has resumed at the Baramita property in northwestern Guyana.

The property is held under a joint-venture agreement between Canarc Resource (TSE) and Echo Bay Mines (TSE). The latter invested US$6 million in Canarc, at least US$3.5 million of which must be spent on Baramita.

Echo Bay, which now holds about 10% of Canarc’s shares, can earn a half interest in the property by matching Canarc’s expenditures, completing a bankable feasibility study and paying an unspecified fee.

Drilling is focused on the New World prospect, where previous trenching returned 4.8 grams gold over 57 metres.

Drilling in the trench area last year failed to return significant values, and results indicate the drill holes were collared in the wrong location.

The current program is testing the trench mineralization from a different orientation.