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 VANCOUVER, British Columbia, July 16 /PRNewswire/ -- Canarc Resource Corp. (Vancouver: CCM) announced that the company has acquired options to earn interests ranging from 35 percent to 65 percent in four gold properties located near the Cayuni and Barama Rivers in northwestern Guyana.
 The four properties are Prospecting Licenses issued in 1992 by the Government of Guyana, Geology and Mines Commission to Roraima Mining Co. Ltd., a Guyanese corporation, with head office in Georgetown, Guyana. Roraima's Chairman and Managing Director, Dr. Grantley Walrond, was the Guyana commissioner of Geology and Mines for eight years in the 1980s and most recently was the United Nations chief technical advisor to the Ministry of Mines and Energy of Ethiopia.
 The option allows Canarc to spend up to US $7 million over a four- year period to earn up to a 50 percent interest in each property. At that time, Canarc has an additional option to increase its interest in the first property of choice to 65 percent, Roraima can then increase its interest in a second property to 65 percent, Canarc can increase its interest in a third property to 51 percent and Roraima can increase its interest in the fourth property to 51 percent, at no additional cost.
 Each of the four properties was selected by Roraima for development because of their broad geological similarities to the Omai mine, the first modern gold mine to be successfully brought into production in Guyana. Omai is typified by gold mineralization in shear zones and quartz stockworks crosscutting volcanic and sedimentary greenstone belts and granitic intrusions.
 Each of the four properties has a prolific history of surface gold production over the last 100 years, mostly by "porknockers" or casual miners. Each property has several gold prospects and significant potential to host bulk tonnage, low grade, open pittable gold deposits.
 Quartzstone P.L.
 This 4,600-hectare (11,300-acre) property was originally discovered in 1892, and of the 244,877 ounce of placer gold production recorded for the Cuyuni district from 1893 to 1902, "the greatest output of gold in the Cuyuni district comes from these Quartzstone placers."
 There are three main areas of historical gold workings on the property. In 1953, the New York Alaska Dredging Corp. drilled off one of these gold placers and reported gold reserves totaling 5.8 million cubic yard grading 0.006 ounce/cubic yard or 34,800 ounces of gold.
 Some of the gold nuggets recovered were still attached to quartz, and both the gold and the quartz were angular suggesting a local bedrock source to the placer gold. Grab sampling of quartz veins assayed up to 1.55 ounce per ton gold.
 In another of the three main areas of historical workings, a broad shear zone hosting a stockwork of quartz veins measures about 630 feet long by 200 feet wide. This area was trenched in 1988 by Eastern Caribbean Company Ltd. who collected 99 channel samples each representing 2m horizontal intervals, in the four trenches, as follows:
 Trench No. No. Samples Width (m) Grade (pt)
 1 25 50 0.85
 2 32 64 3.78
 3 19 38 1.75
 4 23 46 1.59
 Average 24.75 49.5 2.14
 162.4 ft. 0.062 opt
 This area clearly holds economic potential, both in the average width (162.4 foot) and grade (0.062 opt) of the gold mineralization. A US $150,000 surface exploration program of line cutting and soil, sediment and rock sampling is now underway and will be completed in the next few weeks.
 Inna P.L.
 This 5,800-hectare (14,300-acre) license area was originally discovered in 1898. Several areas were opened up for surface placer and bedrock gold production by porknockers. The placers reportedly yielded 0.125 ounce cubic yard on average and some diamonds were recovered as well.
 A small stamp mill operated on one of the many small high grade quartz veins from 1935 to 1937, and intermittently after that. Mill heads reportedly ran 0.75 opt gold and mill tails about 0.20 opt gold.
 A government sponsored geological survey from 1966 to 1977 discovered a large molybdenum soil anomaly which was then tested by 14 drill holes. Although no sampling was done in the saprolite material, and only minor gold assaying was performed in the drill cores (they were looking for molybdenum at that time), two holes did report significant gold mineralization. Hole 3 intersected 320 feet grading 0.01 opt gold and Hole 4 intersected 287 feet grading 0.01 opt gold.
 Surface sampling of saprolite revealed two main sets of numerous high grade quartz veins assaying up to 3.0 opt gold over a two-foot width and 54-foot length in one instance. Surface sampling of alluvial and eluvial quartz-gold material and tailings showed about 0.6 opt gold grades and only 17 percent gold recoveries. Grab samples assayed up to 8.2 opt gold.
 A recently completed US $150,000 surface exploration program of linecutting and soil, sediment and bedrock sampling has defined two large gold anomalies and three other smaller gold anomalies.
 The largest gold anomaly measures more than three kilometers long by 200m wide at a 0.5 gpt cutoff, with several peak values over 1.0 gpt. The second gold anomaly extends 800m long by 200m wide with similar cutoff and peak values.
 These two targets alone offer excellent economic potential to host bulk tonnage, open pittable gold deposits, subject to follow-up exploration work.
 Imotai P.L.
 This 5,030-hectare (12,400-acre) gold prospect was originally discovered in 1905 and recorded surface placer gold production totaled 14,055 ounces from 1906 to 1923. The main surface workings stretch over a 4.8-kilometer long area and there are several other smaller areas of surface workings on the property.
 In 1937, gold reserves in the surface placers were estimated at more than 1.25 million cu. yd. grading 0.006 oz./cu.yd., in one area. Coarse gold nuggets were recovered, some attached to quartz, the largest of which weighed 76 ounce gold.
 A US $150,000 surface exploration program is currently nearing completion at Imotai and results will be reported in the next few weeks.
 Warari P.L.
 This 5,930-hectare (14,600-acre) license area is one of the oldest gold mines in Guyana, with gold production dating back to 1863. The British Guiana Gold Co. operated a small stamp mill briefly in 1863 and it was reactivated by Chinese porknockers around 1886.
 Numerous other companies prospected and mined in the Wariri area thereafter until 1946 when a minimum possible gold reserve of 170,000 tons grading 0.9 opt gold or 153,000 ounces of gold was reported on one gold vein and 1 million cubic meters of placer material was estimated to grade 0.013 opt, containing some 26,000 ounces of gold.
 The primary gold mineralization is hosted in two major shear zones, each measuring up to 150 feet wide and 3,000 feet long, kaolinized and seriticized over their entire length, and marked by numerous pits, shafts and tunnels.
 A US $150,000 exploration program is now underway to further evaluate the many Wariri gold-bearing areas.
 In summary, Bradford J. Cooke, Canarc's president, states, "Our agreement with Roraima will accelerate Canarc's opportunities for growth through the discovery and development of gold deposits with significant mining potential. We have a high regard for Dr. Grantly Walrond, Roraima, their properties and capabilities and we look forward to working closely with Roraima."
 Canarc Resource Corp. is a growth-oriented, gold exploration company listed on the Vancouver Stock Exchange with exploration projects in Canada, United States, Costa Rica, Venezuela, Guyana and Suriname.
 -0- 7/16/93
 /CONTACT: Todd McMurray, VP-investor relations of Canarc Resource, 604-685-9700/

CO: Canarc Resource Corp. ST: British Columbia IN: MNG SU:

MF-JL -- LA013 -- 2372 07/16/93 10:01 EDT
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