Mr. Bradford Cooke reports
CANARC TO UPDATE PRELIMINARY ECONOMIC ASSESSMENT OF NEW POLARIS GOLD MINE PROJECT IN NORTHWESTERN BRITISH COLUMBIA
Canarc Resource Corp. has commissioned an updated NI 43-101 preliminary economic assessment report ("PEA") for the New Polaris gold mine project in northwestern British Columbia. The updated study will be done by Moose Mountain Technical Services (Moose Mountain") who completed the previous PEA studies for Canarc to build an 80,000 oz per year gold mine at New Polaris.
The revised PEA will review capital and operating cost estimates and examine the effects of higher gold prices and lower cutoff grades on gold production, mine-life and project economics compared to the previous PEA report dated December 23, 2009. The previous study, based on a gold price of $US900 per oz, $CA/$US exchange rate of 0.95 and cash costs of US$383 per oz, resulted in a discounted (5%) after-tax Net Present Value ("NPV") of CA$68.6 million with an after-tax Internal Rate of Return ("IRR") of 25.8% and a 2.7 year pay-back period.
The year-old study also included an after-tax cash-flow sensitivity analysis that, based on a US$1100 gold price and all other factors held constant, resulted in a discounted (5%) after-tax Net Present Value ("NPV") of CA$130 million. The lead Qualified Person ("QP") for Moose Mountain pursuant to NI 43-101 for both the previous and proposed preliminary economic assessment reports is Jim Gray, P. Eng.
In recent weeks, Canarc has initiated discussions with a number of interested parties regarding a possible strategic or financial partnership to advance the New Polaris gold mine project through a mine development and feasibility program to a production decision.
We seek Safe Harbor.