Canarc extends New Polaris at depth

Vancouver — Deep drilling at Canarc Resource‘s (CCM-T) New Polaris property near Atlin, B.C., has intersected high-grade gold veins at depth.

The 3-hole, 5,121-ft. program 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 intersected 5.5 ft. averaging 0.31 oz. gold per ton starting at a down-hole depth of 84 ft.

— Hole P-02 cut 18.7 ft. of 0.27 oz. gold starting at 344 ft. down-hole, which included a 6.5-ft. interval grading 0.44 oz. gold per ton starting at 360 ft. down-hole. This was followed by a 5-ft. section of 0.27 oz. gold starting at 448 ft. down-hole.

— Hole P-03 cut 24 ft. of 0.51 oz. gold starting at 79 ft. down-hole, including a 13-ft. section averaging 0.86 oz. gold. Hole P-03 intersected 14 additional zones of mineralization that returned between 0.03 and 0.30 oz. gold over narrower widths ranging from 1.5 to 7 ft.

The results appear to confirm the presence of multiple additional gold veins down-plunge and parallel to the “AB” veins in the mine workings. Canarc believes there is good potential for finding 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. The 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,” says Project Manager James Moors. “We have long held the view that all three main veins are open at depth below the old mine workings [about 600 ft. 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 because of a fault.

All drill core was split by Canarc personnel at the New Polaris camp, 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, the New Polaris mine has a resource estimate of 1.3 million oz. gold. However, this estimate is not compliant with National Policy 43-101 standards, so new modeling is under way to identify a resource suitable 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. 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. In total, 100,000 units priced at $1.05 apiece were issued. Part of the proceeds will be used to fund a drilling program at New Polaris in 2004.

Canarc has also acquired, by way of private placement, 500,000 units of Endeavour Gold (EDR-V). A unit consists of one share and half a non-transferable warrant. Each whole warrant entitles Canarc to buy another share for 35 before Oct. 7, 2005.

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

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