Canarc cuts high grade at depth at New Polaris

Vancouver – A deep drilling program at Canarc Resource’s (CCM-T) New Polaris property near Atlin B.C., has intersected new high-grade gold veins at depth.

The 3-hole, 5,121 ft. drilling campaign was designed to test two deep targets beneath the historic Polaris mine workings. These targets included potential parallel “C” type vein mineralization in the footwall, and down plunge extensions of “AB” veins. Results are as follows:

• Hole P-01 cut 5.5 ft. averaging 0.31 oz gold per ton, starting 84 ft. down-hole.
• Hole P-02 cut 18.7 ft. averaging 0.27 oz. gold, starting 343.5 ft down-hole. This included a 6.5-ft. interval that averaged 0.44 oz. gold per tonne, starting 359.5 metres down-hole. This was followed by a 5-ft. section that averaged 0.27 oz. gold starting 448.0 ft. down-hole.
• Hole P-03 cut 24 ft. averaging 0.51 oz. gold, starting 79.0 ft. down-hole. This included a 13.2 ft. section that averaged 0.86 oz. gold.

Canarc reports that hole P-03 intersected an additional 14 mineralized zones at depth that returned grades between 0.03 and 0.30 oz per ton over narrower widths ranging from 1.5 to 7.0 ft.

This confirms the presence of multiple additional gold veins down plunge and parallel to the “AB” veins in the mine workings. Canarc believes that there is good potential to find deep extensions of the known “AB” ore shoots as well as new ore shoots at depth.

The two veins intersected at depth in hole P-02 are believed to be newly discovered “C” type veins, situated deep in the footwall of the main “C” vein system. These two veins remain open at depth.

“These new vein discoveries are compelling evidence that the New Polaris vein systems are far from being fully explored,” stated Canarc project manager James Moors. “We have long held the view that all of the three main veins are open at depth below the old mine workings (about 600 feet deep) and to a certain extent along strike.”

Hole P03-1 intersected an ore pillar in the mine but did not hit the new deep footwall veins, possibly due to a fault.

All drill core was split by Canarc personnel at the New Polaris camp, and then flown to Vancouver for assay by ALS Chemex.

The New Polaris mine, formerly known as Polaris Taku, produced 231,000 oz. from 1938 to 1951. Based on extensive past drilling, an earlier resource estimate at the New Polaris mine tallied to 1.3 million oz. gold. However, this resource estimate is not compliant with the new National Policy 43-101 so new modeling is underway to identify a compliant resource suitable for preliminary evaluation for a 65,000 oz per year high-grade mine.

The resource is hosted in quartz-carbonate veining within shear structures. Gold is associated with disseminated, acicular arsenopyrite and anhedral pyrite, and, as a result, float concentrates will require pressure oxidation or roasting prior to leaching.

Meanwhile, Canarc recently closed a non-brokered flow through financing valued at $105,000. A total of 100,000 units at $1.05 per unit were issued. Part of the proceeds will be used to fund a drilling program on the New Polaris property in 2004.

Canarc has also acquired by way of private placement, 500,000 units of Endeavour Gold (EDR-V). Each unit consists of one common share and one-half of a non-transferable share purchase warrant. Each whole warrant entitles Canarc to purchase one additional common share at an exercise price of $0.35 per share on or before October 6, 2005.

Canarc now has beneficial ownership of 1.1 million common shares of Endeavour, representing 12% of the issued share capital, and 750,000 warrants. If the warrants are exercised in full, Canarc would hold 1.8 million shares, or 18 %, of the issued shares of Endeavour. The securities were purchased for investment purposes.