Canarc Resource Corp. (TSX:CCM) (OTCBB:CRCUF) (DBFrankfurt:CAN) is pleased to announce that it has executed a C$10 million Pre-Development and Earn-In binding Agreement with PanTerra Gold (British Columbia) Limited a wholly owned subsidiary of PanTerra Gold Limited, Australia (ASX:PGI) for advancing Canarc’s New Polaris Gold Mine through feasibility and permitting.
Highlights of the Agreement
-- Panterra has a 30 months option to earn a 50% interest in New Polaris by
spending a total of C$10M on three stages of predevelopment activities
including metallurgical test work, additional drilling, environmental
permitting and completion of a Definitive Feasibility Study.
-- The ultimate goal is to produce refractory gold concentrate at New
Polaris that would be shipped for processing into dore gold bars at
Panterra's Albion plant located in the Dominican Republic.
Catalin Chiloflischi, CEO of Canarc, remarks: “The signing of this agreement is a major step towards advancing the New Polaris Gold Mine to production. We are pleased to have Panterra as our strategic partner that shares our vision of New Polaris Gold Mine becoming an important Canadian high-grade gold mine. This partnership provides Canarc with direct access to the world’s first Albion processing plant for treating refractory gold concentrates into dore gold bars. We see this agreement as strategically important in order to advance New Polaris to production in a concrete and meaningful way for the benefit of Canarc and our shareholders.”
Panterra Gold and the Albion Process
-- Panterra is an Australian listed gold and silver producer. Panterra's
core project is the 100% owned Las Lagunas gold/silver tailings
retreatment project that processes tailings from the historic production
at the Pueblo Viejo mine in the Dominican Republic.
-- Panterra is credited with the world's first utilization of Albion
process for oxidation of refractory ore containing precious metals.
Albion process oxidizes sulphide ore, rendering gold and silver amenable
to extraction by standard carbon-in-leach processing.
-- Panterra expects that recoveries achieved from metallurgically complex
tailings will significantly improve when processing clean refractory
concentrate from a mining operation such as New Polaris. As Panterra is
searching for long term supply of clean refractory gold concentrate, the
remaining life for existing tailings in the Dominican Republic is
expected to match well with New Polaris' anticipated timeline to
-- A video of the Las Lagunas operations can be viewed online at:
The Albion Process
-- The Albion Process was developed in 1994 by Glencore and is patented
-- The Albion Process is a combination of ultrafine grinding and oxidative
leaching at atmospheric pressure.
-- The feed to the Albion Process are base or precious metal concentrates.
-- The sulphides in the feed are oxidized and liberated, allowing the
wanted metals to be recovered by conventional means.
-- There are three Albion Process plants currently in operation. Two plants
treat a zinc sulphide concentrate and are located in Spain and Germany.
A third Albion Process plant is operating by Panterra in the Dominican
Republic treating a refractory gold/silver concentrate. A fourth plant
is under construction in Armenia, and will be treating refractory gold.
-- Additional Information about the Albion Process can be found online at:
Pre-Development Earn In Agreement
The Agreement provides for Panterra to progressively spend C$10 million on three Stages of predevelopment activities including additional drilling, metallurgical test work, environmental permitting, detailed mine planning, tailings dam design, preliminary engineering, and completion of a Definitive Feasibility Study to earn up to 50% in New Polaris.
The first Stage of the predevelopment expenditure will cost approximately C$500,000 over a five-month period. An initial C$250,000 will be paid to Canarc within 2 days and the additional C$250,000 within 90 days of signing this agreement.
Stage one will involve laboratory production of flotation concentrate followed by test work through Glencore Technology Albion pilot plant in Brisbane, Australia to confirm expectations that the New Polaris concentrate is amenable to oxidation and gold extraction at the Las Lagunas process plant.
This stage will also involve a comprehensive technical and economic review of the proposed development and commencement of environmental baseline data collection required for permitting.
Following completion of Stage one, PGBC will have 60 days in which to elect to proceed to Stage two of the predevelopment expenditure, at a cost of approximately C$3.5 million.
Expenditures will include a 10,000m drilling program, additional engineering and completion of the seasonal collection of field data required for the environmental permitting.
On completion of the second stage, PGBC will have earned a 20% interest in the JV based on a cumulative C$4M spending during stage one and two.
Following completion of stage two, PGBC will have 60 days in which to elect to proceed to stage three of the predevelopment expenditure, at a cost of approximately C$6 million.
Third Stage expenditures will be primarily focused on the completion of a Definitive Feasibility Study which will involve a further 10,000m of in-fill drilling, additional metallurgical test work, and preliminary engineering.
On completion, PGBC will have earned a 50% interest in the Project and will be appointed Manager.
PGBC can increase its interest in New Polaris to 51% by purchasing 1% from Canarc within six months of completion of the DFS at a cost of 1% of the NPV established by the DFS using a 10% discount rate.
Garry Biles, P.Eng, Canarc’s President and COO, is the Qualified Person who reviewed and approved the technical information contained in this news release.
A NI 43-101 preliminary economic assessment report (“PEA”) for the New Polaris gold mine project, dated April 10, 2011, was completed by Moose Mountain Technical Services. A copy of the report was filed on the Sedar website on May 26, 2011 and can be viewed at: http://www.sedar.com.
About Canarc Resource Corp.
Canarc is a growth-oriented, gold exploration and mining company listed on the TSX and the OTC-BB. The Company is currently focused on exploring its gold properties in north and central BC. Canarc is also seeking a partner to advance its 1.1 million oz, high grade, underground, New Polaris gold mine project in British Columbia to the feasibility stage. Canarc is also seeking to acquire an operating or pre-production gold mine in the Americas.
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