Zone intersected at Polaris-Taku

Recent drilling on the Polaris-Taku gold property is reported to have intersected a large altered and mineralized zone at the west end of the C vein.

Located in northwestern British Columbia, Polaris-Taku is a joint venture involving Canarc Resource (VSE), Suntac Minerals (VSE) and Rembrandt Gold Mines (ASE) which plan to merge in early August.

Canarc would then own 100% of the Polaris-Taku gold deposit, as well as a 23% carried interest in a gold project in Latin America, and a 33.3% carried interest in the GNC claims surrounding the Eskay Creek gold project north of Stewart, B.C.

Canarc has already launched a $5.5-million development program at Polaris-Taku, a former producer. The program is expected to take 18 months, and is aimed at doubling preliminary gold reserves which currently stand at 2.2 million tons grading 0.44 oz. gold per ton. The mineralization at this project is refractory and will require processing techniques involving roasting or pressure oxidation.

Hole C11, part of this year’s first-phase drill program, was drilled on a 200-ft. stepout to the west of the C vein.

Canarc said its on-site geologists reported a 120-ft. mineralized intersection of quartz-carbonate alteration and veining that contains zones of “low-grade” mineralization and two zones of “high-grade” mineralization. Assay results are expected shortly.

The hole was drilled to test an area where the C vein approaches the AB vein, and Canarc is of the view that it opens up potential for an entirely new zone. Assay results were released for three holes targeted to fill some large gaps in the C vein drill pattern. This drilling returned 5.5 ft. grading 0.32 oz. gold per ton; 14.4 ft. of 0.29 oz. gold, and 8.2 ft. of 0.13 oz. gold.