Senior producer Barrick Gold (TSE) has elected not to exercise its warrants to buy 1.1 million common shares of Canarc Resource (TSE) at $4.57 per share. As a result, Barrick’s right of first opportunity concerning Canarc’s Guyana Shield gold properties in South America has expired.
Canarc, meanwhile, is about to embark on a 25-hole diamond drill program, totalling 3,000 metres, on its Sara Kreek property in Suriname. Four large gold soil anomalies — Parrot, Kaka, Breakfast and Parbo — are to be tested over the next three months. Recent trenching on the Parrot anomaly identified a quartz stockwork zone over a strike length of 900 metres.
Results include 18 metres of 1.06 grams per tonne for trench 1; 8 metres of 0.31 grams for trench 2; 30 metres of 0.41 grams for trench 3; 42 metres of 1.68 grams (including 9 metres of 3.05 grams) for trench 4; and 20 metres of 2.42 grams (including 5 metres of 4.59 grams) for trench 5.
Canarc can earn an 80-100% interest in any bedrock gold deposit on the 22,500-hectare property, subject to a 20% net profits interest or a floating net smelter royalty.
Barrick continues to hold 1.1 million shares of Canarc, representing about 4% of the company.
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