Canadian Mining Journal

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GOLD: Canarc tables study of New Polaris



BRITISH COLUMBIA – Canarc Resources has wrapped up a preliminary economic assessment of its New Polaris gold project in northwestern British Columbia that indicates the project could produce 80,000 oz. of gold per year over an 8.7 year mine life.

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 to build and process 750 t/d 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 at site.

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

The project contains 1.68 million indicated tonnes grading 10.8 g/t gold for 586,000 oz. of gold. The project also contains 1.48 million inferred tonnes at 10.2 g/t gold for 485,000 oz. of gold.

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

Shares of the company are currently trading at 6¢ within a 52-week range of 3¢ to 7¢. The company has a $13 million market capitalization.

This story first appeared on www.NorthernMiner.com.