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Canarc Resource Corp. - CCM.TO $ 0.45
Market cap: $30 million
Shares outstanding: 69 million
Canarc Resource Corp has been added to our TGDL TOP-20 list as of August 17, 2007. As communicated through our dispatch of August 17 we took advantage of the recent sell-off in gold equities in order to add this company at fire sale prices to our TGDL TOP-20. The stock is trading near its 52 week low but is poised for significant growth coming years. I've been following the company for years now and think the time is right to start deploying some of your precious investment capital into this little gem. I consider the downside risk of investing in this company low since investing in Canarc means owning real proven assets. Canarc's New Polaris project will most probably the next high grade gold mine in British Columbia. With a resource base exceeding 1 million ounces of gold Canarc investors are buying gold in the ground for less than $30 an ounce. Within a few years from now the New Polaris Mine will be a producing gold mine which will turn the company into a profit making entity.
The bottom line is:
Investors buying Canarc are buying gold in the ground for less than $30 per ounce so all other projects could be considered as a free gift!
So yes, Canarc's New Polaris project could be a company maker on its own indeed but Canarc has more to offer than that. Below you'll find an overview of Canarc's main projects:
New Polaris Gold project BC, Canada
Canarc already demonstrated a resource at new Polaris exceeding 1 million ounces of gold and remains focused on the pre-feasibility program. This includes dewatering the underground mine workings, finalizing the current phase of metallurgical testwork, continuing the site-related environmental studies, developing the conceptual mine plan and completing the preliminary economic assessment. This work program is just completed and results are encouraging, see also press release below. Management will now focus on evaluating alternatives for advancing the project to feasibility. The feasibility program now under review consists of driving a decline from surface down to the 1050 mine level (1000 feet below surface), developing one or more drifts and raises within the C vein, trial mining of a bulk sample, shipping and processing of a representative portion for final metallurgical testing, finalizing the process flow sheet and completing a feasibility study.
Benzdorp Gold project, Suriname
The Benzdorp gold project in Suriname which could evolve into a world class gold deposit and Canarc is speeding up its exploration efforts up in order to prove up the true potential out there. The property contains a large historic placer gold district (>1 million oz Au produced) and evidence for both shear-hosted gold deposits similar to IAMGOLD's Gros Rosebel mine and saprolite-hosted gold deposits, like Kinross's Paracatu deposit, are present on the property.
Canarc performed a geochemical soil and poknokker pit sampling program in Q2 2007 and is awaiting receipt of assays. The results are expected soon and will help in order to identify drill targets for the next phase of work
Santiago Gold project, Mexico
Santiago is a low-sulphidation, epithermal gold exploration project located in the famous Batopilas district of Chihuahua, Mexico. The 173-hectare property covers two prominent iron oxide-silica-clay alteration zones, one of which (North Zone) surrounds eight parallel, high-grade, gold-bearing, quartz-sulfide veins (see table below). These properties have been owned by the same family for over 100 years and have never been explored by modern methods. Canarc can obtain 100% interest in the Santiago property.
In March 2006, SGM (Mexican Geological Survey) carried out a rock sampling program of the North Zone at Santiago and reported a 200 m long by 100 m wide by 70 m deep mineralized zone with potential to host bulk tonnage low grade gold mineralization. Based on Canarcâ?Ts resampling of three of the eight veins within the North Zone that returned high grade gold intervals such as 30.3 gpt gold over 2.3 m, 17.7 gpt gold over 2.5 m and 14.9 gpt gold over 2.1 m, there is clearly good potential for high grade gold mineralization as well as the bulk tonnage low grade potential.
A Phase 1 exploration program of vein mapping and sampling and extending the road to provide better access for drilling of the North Zone vein system will commence in the 3rd quarter 2007.
Canarc tumbled down into severe oversold territories due to the massive gold equity sell-off last week. Extremes like these never persist for a long period of time and the stock will most probably bounce back towards its 50 dma (currently at 55 cents) rather sooner than later.
Highlights latest press release:
Canarc Resource Corp.: Preliminary Assessment Indicates Positive Results for New Polaris Gold Mine Project, BC
Monday August 20, 4:30 pm ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Aug 20, 2007 -- Canarc Resource Corp. (Toronto:CCM.TO - News)(OTC BB:CRCUF.OB - News)(Frankfurt:CAN.F - News) announces that a preliminary assessment of building an 80,000 oz per year gold mine at the New Polaris property in northwestern BC has now been completed with positive results. At a US$650 per oz gold price, the project generates a pre-tax undiscounted net present value (NPV) of CA$60.4 million.
Canarc's management believes that opportunities exist to improve the base case model such as:
- Increasing resources and therefore mine life;
- Increasing gold recoveries and concentrate grades;
- Increasing production to enhance economies of scale;
- Reducing transportation costs; and
- Reducing offsite processing costs.
Bradford Cooke, Chairman and CEO, commented:
It is gratifying to see the New Polaris gold mine project come through a rigorous preliminary assessment of building an 80,000 oz per year high grade underground gold mine with positive results. While sensitive to the $US exchange rate, New Polaris is tremendously leveraged to the price of gold. Management is currently assessing its alternatives for advancing the project through the feasibility phase.
We will issue a more detailed report on Canarc soon which will include an overview of all projects and an interview with Canarc Chairman Brad Cooke
The Gold Discovery Letter/
The Gold Drivers Report