Bellavista mine pours first gold (July 11, 2005)

Glencairn Gold (GGG-T) has poured the first bar of yellow metal at its Bellavista open-pit mine, 120 km west of San Jose, Costa Rica. The bar weighed 6.4 kg.

About 200,000 tonnes of ore have been placed on leach pads since mining began in April. The company estimates that 10,000 oz. gold are contained in solution and within ore on the pads.

The mine is expected to produce 60,000 oz. gold annually over a life span of about eight years.

Canarc Resource (CCM-T) holds a 5.6% net profit interest (NPI) before payback in Bellavista that increases to 20.2% after payback of Glencairn’s exploration, development and capital costs. Using a 5% discount rate and a US$425-per-oz. gold price, the net present value of Canarc’s NPI was recently calculated to be US$3.3 million.

Canarc wants to sell its NPI and redirect the funds towards its New Polaris gold project in British Columbia and Benzdorp gold project in Suriname.

Glencairn also produces gold at its Limon mine in Nicaragua. Last year Limon turned out 48,000 oz. gold, and a similar total is expected in 2005.