Canarc tables study of New Polaris gold project in BC

Canarc Resources (TSX: CCM; US-OTC: CRCUF) has wrapped up a preliminary economic assessment (PEA) of its New Polaris gold project in northwestern British Columbia that models production of 80,000 oz. gold per year over an 8.7 year mine life.

The study assigns New Polaris a US$216 million after-tax net present value at a 5% discount rate, and a 38% after-tax internal rate of return. It would cost US$111 million to build and process 750 tonnes per day at a 90.5% recovery rate to achieve after-tax payback in 2.7 years.

The study eliminates the need to ship concentrate along the Taku River to a third-party treatment facility, which the company had contemplated in past studies on the project. It would instead use bio-oxidation followed by a leaching process to produce doré bars onsite.

Canarc explored the project’s C vein system between 1988 and 1997, and infill drilled it between 2003 and 2006. The resource consists of over 170 holes.

The project contains 1.68 million indicated tonnes grading 10.8 grams gold per tonne for 586,000 oz. gold, and contains 1.48 million inferred tonnes at 10.2 grams gold for 485,000 oz. gold.

The company is considering a feasibility work program at New Polaris that would include 24,000 metres of infill drilling and cost $10 million.

New Polaris shares are trading at 6¢ in a 52-week range of 3¢ to 7¢. The company has a $13-million market capitalization.


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