SOUTHEAST ASIA SPECIAL — Canarc positions itself in Indonesian gold belt

Junior Canarc Resource (VSE) has acquired a land holding totalling 2.2 million hectares in the gold belt of central Kalimantan, Indonesia.

The company secured 13 separate contracts of work (CoWs) by forming 50-50 joint ventures with junior exploration companies, which put up the required US$11 million in bonds.

Each of the contract areas was chosen on the basis of geological similarities to other gold deposits in the belt, and proximity to alluvial gold deposits.

The CoWs are in the early stage of exploration, but Canarc considers the potential for large-scale gold deposits to be excellent. As part of a planned $3-million exploration program, geological data on each CoW are being compiled. The first phase of work, already under way, includes airborne prospecting and a satellite radar imagery study. Drill targets will be defined by stream sediment sampling and geochemical sampling.

Canarc has formed partnerships with such companies as Mill City Gold Mining (VSE), which holds the rights to a 50% interest in the 159,400-hectare Block K. The property lies immediately south of the Mt. Muro gold mine, which is owned by Aurora Gold, an affiliate of Ashton Mining of Australia. The property occurs along a northwest-trending cross structure and is drained by the Barito River.

Kafus Capital (CDN) holds a 50% working interest in Block C, a 25,940-hectare property 180 km northeast of the Busang discovery. The property adjoins ground held by Teck to the south, Indochina Goldfields to the west, International Pursuit to the northeast, and Block B (which Canarc has joint-ventured to Vancouver-listed Blackwater Gold) to the north. Block B comprises 98,160 hectares.

Greystar Resources (VSE) acquired the rights to a half interest in Blocks D, M, N and P for a package of 803,200 hectares. The company has since granted Churchill Resources (VSE) a 25% interest in the 39,800-hectare Block D, which lies south of Block C in northeastern Kalimantan. The property package of Blocks M, N and P are in southwest Kalimantan, northeast of Placer Dome’s Ampalit gold prospect.

Goldnev Resources (VSE) holds a 50% interest in Block H, a 229,300-hectare property 50 km west of the Mt. Muro mine and 300 km southwest of the Busang.

NCC Mining (VSE) acquired a half interest in Block E, which comprises 24,090 hectares in northeastern Kalimantan.