Canarc Resource Corp. Announces Positive Feasibility Study Recommends Commercial Gold Production at Bellavista; Low Cash Operating Costs of US$156 per ounce.VANCOUVER, British Columbia--(BUSINESS WIRE)--April 28,1999-- Canarc Resource Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CCM CCM Contemporary Christian Music CCM Critical Care Medicine CCM County College of Morris (New Jersey) CCM Chama Cha Mapinduzi (political party, Tanzania) CCM CORBA Component Model .) is pleased to announce that a positive feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. on the Bellavista Project in Costa Rica Costa Rica (kŏs`tə rē`kə), officially Republic of Costa Rica, republic (2005 est. pop. 4,016,000), 19,575 sq mi (50,700 sq km), Central America. has been completed by partner Wheaton River Minerals Ltd. Commercial gold production is recommended with a low cash operating cost of US$156 per oz. gold. Canarc owns an 18.3 percent carried interest in Bellavista, and receives annual pre-production payments of US$117,750 from Wheaton River each January. The study concludes that an average of 60,000 ounces of gold per year can be produced using open pit, heap leach methods over a 7.3 year mine life. Total life-of-mine production will be 436,000 ounces of gold. At peak operation, the annual open pit mining rate will be 5,745 tons of ore per day or 1.62 million tons per year on the basis of six operating days per week. As previously reported, the proven and probable reserves on the property are estimated at 11,239,661 tons grading 1.54 grams gold per ton. The strip ratio is 1.32:1. Total cash costs including net-profit-interest royalties are estimated at US$179 per ounce. Capital costs are estimated at US$28.3 million. At a US$325 per ounce gold price, the pre-tax internal rate of return is 19 percent, and the net present value is US$20.2 million at a discount rate of 5 percent. Wheaton River is now in discussions with financial institutions regarding debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay for the Bellavista project. Canarc Resource Corp. is a growth-oriented, international gold exploration and mining company. Production increased 36 percent last year to 9500 oz. at the Company's Sara Kreek (80 percent) mine. Reserves and resources now total 2 million oz. at the New Polaris (100 percent) and Bellavista (18 percent) projects. Our large exploration portfolio includes joint ventures with Homestake and Noranda. Major shareholders include Barrick Gold Barrick Gold Corporation TSX: ABX NYSE: ABX is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units (RBU's) located in Australia, Africa, North America and South America. and Echo Bay Mines. The Company's common shares trade under the symbol "CCM" on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . ON BEHALF OF THE BOARD OF DIRECTORS CANARC RESOURCE CORP. Bradford J. Cooke, President NOTE: If you have an E-Mail address and would prefer to receive Canarc's News through this format, please E-Mail us at canarc@compuserve.com. |
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