Canarc Completes Detailed Data Review of Fondaway Canyon Project, Develops New Structural Model for Gold Mineralization, Commences Ground Magnetic Survey and Drill Permitting in Nevada
News Release
Canarc Completes Detailed Data Review of Fondaway Canyon Project,
Develops New Structural Model for Gold Mineralization,
Commences Ground Magnetic Survey and Drill Permitting in Nevada
Vancouver, Canada – July 5, 2017 – Canarc Resource Corp. (“Company”) (TSX: CCM, OTC -BB:
CRCUF, Frankfurt: CAN) announces that it has completed a detailed data review of the recently
acquired, wholly owned Fondaway Canyon gold project in Nevada and has developed a new
structural model for gold mineralization on the property . A Phase 1 exploration program is now
underway including a ground magnetic survey and permitting for an 8 -10 hole s diamond drill
program.
New Structural Model
Re-analysis of the historic data together with on -going field mapping and sampling by Canarc 's
recently-hired Exploration Manager have resulted in the development of a new structural model
that ties gold-mineralized zones to one main shear system structure and related dilational splays
over a 3.5 kilometer (km) strike and up to 800 meter (m) width on the property.
The new model also highlights multiple areas with potential to expand the current gold resources
by step out drilling along strike or down dip of the known gold zones, see diagram below.
CANARC RESOURCE CORP .
810-625 Howe Street
Vancouver, BC V6C 2T6
T: 604.685.9700
F: 604.6685 -9744
www.canarc.net
CCM: TSX
CRCUF: OTCQX
High-grade gold mineralization ( > 3 g/t) oc curs within multiple, steep "shear veins" along the
district-scale east -west shear zone and also within the linking northeast -trending structures in
the dilation zone. Gold occurs with elevated arsenic (arsenopyrite) and antimony (stibnite);
silver, coppe r, lead and zinc contents are extremely low. Late -stage, extensional quartz veins
occur within the shear veins and as isolated northeast -trending veins within the dilation zone.
Host rocks are Mesozoic carbonaceous siltstones and shales, locally calcareou s, and locally
hosting lower -grade disseminated mineralization lacking veins. A swarm of mafic dikes occurs
along the trend. The mineral system as a whole appears to be transitional between classic
shallow epithermal and deeper mesothermal vein environments.
Gold mineralization is enhanced at the intersection between east-west shear veins and northeast
extensional veins, especially in the corners of the dilation zone. A good example is historic drill
hole TF-114 in the Colorado area, which intersected 7.41 gr ams per tonne (gpt) gold over 48.8 m
including 15.2 m grading 17.61 gpt about 125 m below surface.
In other areas, such as Pack Rat and South Pit, little exploration has been conducted to follow up
on gold mineralization intersected over broad widths in shallow historic drilling (e.g. hole TF -250
returned 38.1 m grading 2.80 g/t Au including 12.2 m grading 5.45 g/t about 50 m below
surface). Mineralization in all areas remains open at depth.
Significant gold mineralization remains to be explored in m any areas, such as the 300 m wide
shear-vein swarm at South Mouth, where Tenneco mined to a 35 m depth in 1989. Two historic
drill holes under alluvial cover west of the range -front fault at the Pediment zone both
intersected gold mineralization, clearly indicating that the main shear hosted gold mineralization
at Fondaway is wide open to the west.
Exploration Program Underway
A ground magnetic survey, consisting of 179 line kilometers with 50 m line spacing, is now
underway to assist in mapping struct ures and delineating mafic dikes, which are an important
component to the structural system. The results of the magnetic survey along with on -going
field mapping and sampling will be integrated into the property database to help refine specific
drill targets.
An exploration notice has been submitted to the U.S. Bureau of Land Management. The notice
includes up to 10 preliminary drill sites as well as access road construction as needed. The
drilling program is scheduled to begin in September 2017. Furth er details of the drill targets will
be released at that time.
In May 2017, Canarc completed an NI 43 -101 report updating the mineral resources for the
Fondaway Canyon project. The updated resource estimate identified indicated resources of
2,050,000 tonnes grading 6.18 gpt gold for 409,000 contained ounces (oz) and inferred resources
of 3,200,000tonnes grading 6.40 gpt gold for 660,000 contained oz.
Canarc’s main exploration objectives at the Fondaway Canyon gold project in 2017 are to expand
the shallow gold resources amenable to open pit mining and refine the metallurgical recoveries
to produce high-grade flotation concentrates.
FG Project Terminated
In order to focus on existing wholly owned projects, the Company has terminated its Option
agreement with Eureka Resources to acquire an interest in their FG Gold project in BC.
Qualified Person:
Dr. Jacob Margolis is a qualified person, as defined by National Instrument 43 -101, and has
approved the technical information in this news release. Dr. Margolis is engaged as a consultant
to Canarc Resource Corp.
Catalin Chiloflischi”
____________________
Catalin Chiloflischi, CEO
CANARC RESOURCE CORP.
About Canarc Resource Corp. - Canarc is a growth -oriented, gold exploration and mining
Company listed on the TSX (CCM) and the OTC -BB (CRCUF). The Company creates shareholder
value by a cquiring, exploring and developing pre -production stage gold mines or properties in
the Americas.
For More Information - Please contact:
Catalin Chiloflischi, CEO
Toll Free: 1-877-684-9700 Tel: (604) 685-9700 Fax: (604) 685-9744
Email: [email protected] Website: www.canarc.net
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward -looking statements” within the meaning of the United States private securities litigation
reform act of 1995 and “forward -looking information” within the meaning of applicable Canadian securities legislation.
Statements contained in this news release that are not historic facts are forward -looking information that involves known and
unknown risks and uncertainties. Forward-looking statements in this news release include, but are not limited to, statements with
respect to the future performance of Canarc, and the Company's plans and exploration programs for its mineral properties,
including the timing of such plans and programs. In certain cases, forward -looking statements can be identified by the use of
words such as "plans", "has proven", "expects" or "does not expect", "is expected", "potential", "appears", "budget", "scheduled",
"estimates", "forecasts", "at least", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and
phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or
"be achieved".
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actua l
results, performance or achievements of the Company to be materially different from any future results, performance or
achievements expressed or implied by the forward -looking statements. Such risks and other factors include, among others, the
Company’s ongoing due diligence review in relation to the Acquisition, risks related to the uncertainties inherent in the estimation
of mineral resources; commodity prices; changes in general economic conditions; market sentiment; currency exchange rates; th e
Company's ability to continue as a going concern; the Company's ability to raise funds through equity financings; risks inherent in
mineral exploration; risks related to operations in foreign countries; future prices of metals; failure of equipment or proce sses to
operate as anticipated; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental
approvals; government regulation of mining operations; environmental risks; title disputes or claims; limitations on insuranc e
coverage and the timing and possible outcome of litigation. Although the Company has attempted to identify important factors
that could affect the Company and may cause actual actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward -looking statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Accordingly, do not place undue reliance on forward -
looking statements. All statements are made as of the date of this news release and the Company is under no obligation to update
or alter any forward-looking statements except as required under applicable securities laws.