GOLD STUDY: Canarc updates New Polaris report

BRITISH COLUMBIA — Vancouver-based Canarc Resource Corp. has filed an updated preliminary economic assessment (PEA) on its New Polaris gold project in the northwest corner of the province. The company said higher gold prices have "significantly improved" the project economics compared to an earlier assessment done in 2007.

Using a gold price of US$900/oz the project would generate a 32.0% pre-tax internal rate of return (IRR) or 25.8% after taxes. It would payback the initial capital cost of C$90.5 million in 2.5 to 3.0 years. Cash cost are estimated to be US$383 per oz, exclusive of off-site

The base case posits a 600-t/d rate producing 640,000 oz of gold over eight years. The property (formerly known as Polaris Taku) has 806,000 tonnes of measured and indicated resources grading 13.2 g/t Au (after dilution) and 944,000 tonnes of inferred resources grading 11.9 g/t Au (after dilution) and a 9.0 g/t cutoff.

Canarc owns 100% of the New Polaris project, but said last October that it would entertain joint venture proposals as a means of advancing the project. Visit www.Canarc.net for more information about the company and its projects.