Canarc intersects high-grade at New Polaris (September 19, 2006)

Vancouver – Drilling by Canarc Resource (CCM-T, CRCUF-O) at its New Polaris project in northwestern British Columbia has returned a high-grade hole including visible gold in the core.

Hole 1615E8A, drilled on the C vein system, intersected 6.2 metres (from 346 metres downhole depth) grading 44.7 grams gold per tonne, including a one-metre interval averaging 108 grams gold. Testing the furthest southwestern portion of the C vein system, the deep infill hole also sampled a narrow quartz-carbonate vein containing semi-massive stibnite and visible gold at about 300-metres depth.

Past drilling has intersected minor stibnite in quartz-carbonate veins but not any visible gold. Interestingly, hole 1615E9 (assays pending) located 100 metres deeper along the same grid line as 1615E8A also intersected visible gold in the semi-massive stibnite vein.

The discovery adds further optimism for Canarc as most vein-hosted gold mineralization at New Polaris is associated with arsenopyrite-pyrite (quartz-carbonate) veining. The strongly gold-mineralized, semi-massive stibnite vein represents a new style of mineralization and perhaps a new system.

Mineralization at the project is classified as mesothermal and hosted in three main shear systems: the AB, Y and C zones. Gold is associated with disseminated sulphides (primarily arsenopyrite) in the quartz-carbonate veins and stockworks.

Following the discovery of gold in 1929, underground mining at New Polaris (then called Polaris Taku) commenced in the mid-1930s and it produced for five years. It operated again from 1946-to-1951 and produced a total of about 232,000 ozs. of gold from 690,000 tonnes of ore averaging 12 grams gold. There is about 15,800 metres of underground development at the mine on 10 levels, plus more than 3,700 metres of raise development.

Canarc has held New Polaris since the early-1990s and has completed more than 40,000 metres of drilling in about 200 holes on the project. The programs have discovered new zones of gold mineralization both below and beyond past mine workings. The project is subject to a 15% net profits interest to Rembrandt Gold Mines that can be reduced to 10%.