A revised agreement with state-owned Grasshopper Aluminum has prompted
In 1996, Grasshopper granted Canarc the right to earn an 80% stake in the property by spending US$5 million on exploration and paying US$750,000 over four years. As part of the deal, the junior was subject to cash penalties if commercial production was not attained in a prescribed period.
In November 1997, after spending US$2 million, Canarc signed on
Under the amended terms, Canarc gets a 100% operating interest once it has spent US$3 million on exploration, paid US$300,000 and delivered a positive feasibility study. The penalties have been rescinded, but Grassalco can mine any placers, and retains a floating net smelter return royalty or a 20% net profits interest on any hardrock production after Canarc recovers its capital costs, plus interest.
Benzdorp covers 1,380 sq. km of the Guyana Shield greenstone belt, near the border with French Guiana. It is said to be the most prolific gold-producing region in the country, having yielded more than 1 million oz. to alluvial miners since the nineteenth century.
Most historic and recent activity has been focused on the easternmost 5% of the property, in a northeast-trending belt of metavolanic and metasedimentary rocks intruded by diorites and crosscut by northerly trending structures. According to Canarc, virtually every stream for 20 km has produced, or continues to produce, placer gold.
The best results from Canarc’s work came from the JQA soil anomaly, which is named after the so-called Jungle Queen dredge, where an average of nearly 1 gram per tonne was yielded over an area measuring 750 metres long by 250 metres wide. The area was tested by 160 auger holes and two sizeable trenches.
Mapping in the vicinity shows that diorites host gold-bearing quartz veins and stockworks, suggesting the possibility of a porphyry deposit in the area. The intrusion measures at least 1 sq. km in surface area.
Mineralized diorite also was drilled 700 metres to the west, across a creek. Gravels cover the area between the two, so diamond drilling is required before they can be justifiably connected.
About 1 km to the south, trench JQS uncovered strong mineralization in saprolite. The trench, which runs east-west, averaged 2.68 grams over 19 metres.
About 1.5 km southeast of JQA, two auger holes cut through shear-controlled mineralization. Dubbed JQB, the showing yielded 788 grams over 2 metres, and 38 grams over the next two metres, of one hole and 55 grams over the final 2 metres of another hole. Several others returned 2-metre intervals exceeding 5 grams.
Each of the four showings will be trenched over the next three months. Diamond drilling will follow.
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