Canarc takes shine to Mexican prospect

Junior Canarc Resource (CCM-T) has acquired a polymetallic prospect on 19,600 ha of ground in the bourgeoning El Salvador area play in central Mexico.

The property, known as Lobo 3, lies 20 km northeast of the El Salvador property, site of the San Nicolas polymetallic discovery of Western Copper Holdings (WTC-T) and Teck (TEK-T).

Canarc believes Lobo 3 is characterized by two types of mineralization: copper-zinc-lead-silver-gold volcanogenic massive sulphide zones similar to San Nicolas and Fresnillo-type silver-lead-zinc-copper sediment-hosted mantos, skarns and veins.

Calgary, Alta.-based Mill City International (MIY-V) has been granted an option to earn a half-interest in Lobo 3 by paying US$200,000 and issuing 200,000 shares to Canarc and spending US$2 million on exploration over two years. An additional 100,000 shares will be issued to Canarc upon completion of a bankable feasibility study.

Vancouver-based Canarc, as operator, has proposed a program of aeromagnetic and ground surveys combined with drilling, to be carried out over the next several months.

“Our property portfolio in the Zacatecas area gives us excellent exposure to a new discovery area, as well as to the prolific silver district,” says Godfrey Walton, Canarc’s vice-president of exploration. “Lobo 3 has discrete prospects already identified for immediate follow-up, and by securing a joint venture on the property, Canarc will also maintain its low-risk/low-cost approach to new projects.”

Meanwhile, in southern Guyana, Canarc has optioned its Kwitaro property to Colorado-based Cyprus Amax (CYM-N).

Cyprus can earn a half-interest in the prospect by spending US$2.1 million on exploration and making unspecified cash payments over four years.

The American major can earn an additional 20% stake by financing a bankable feasibility study.

Canarc holds a 100% interest in Kwitaro, under option from a Guyanese firm.

Canarc is obliged to pay the firm US$110,000, issue it 200,000 shares and spend US$600,000 on exploration over three years.

The 7,720-ha property lies 45 km northeast of Sutton Resources’ Marudi Mountain gold deposit and is believed to share the same Early Proterozoic-aged greenstone belt. Stream-sediment sampling is reported to have revealed a gold anomaly that measures 6.5 by 1.8 km.