Canarc Continues to Intersect High-Grade Gold at Fondaway Canyon, Nevada, Including 3.24 Grams per Tonne Gold over 12.8 Meters
News Release
Canarc Continues to Intersect High-Grade Gold at Fondaway Canyon, Nevada,
Including 3.24 Grams per Tonne Gold over 12.8 Meters
Vancouver, Canada – January 16 , 2018 – Canarc Resource Corp. (TSX: CCM, OTC -BB: CRCUF,
Frankfurt: CAN) is pleased to report results from the final four holes of its seven -hole drilling
program completed in late 2017 at its Fondaway Canyon Project in Nevada. Assays for the first
three holes were released on December 5, 2017. All holes in the drill program intersected gold
mineralization.
Drilling Highlights Include:
24.4 meters (m) grading 1.80 grams per tonne (gpt) Au including 6.35 gpt Au over 0.9 m, 5.58 gpt
Au over 1.6 m and 6.96 gpt Au over 1.3 m in hole FC17-4.
12.8 m grading 3.48 gpt Au including 5.97 gpt Au over 6.1 m (contains 13.50 gpt Au over
0.6 m) in hole FC17-5
8.3 m grading 2.83 gpt Au including 5.91 gpt Au over 3.7 m in hole FC17-4
5.2 m grading 2.06 gpt Au including 5.99 gpt Au over 1.2 m in hole FC17-7
4.0 m grading 4.19 gpt Au including 13.40 gpt Au over 0.9m in hole FC17-5
True widths of mineralization are estimated to be >90% o f reported core lengths in hole FC17 -4, 55% for FC17 -5, 65 -77% for
FC17-6, and 65% for FC17 -7; true width estimates are preliminary and subject to the results of further 3D modeling. Full results
are presented in Table 1.
Catalin Kilofliski , CEO of Can arc , stated : "The results of our last four holes continue to provide
encouragement for Fondaway Canyon. Mineralization in the three areas tested by these holes
has been significantly extended to depth and along strike. For example, FC17 -5 has extended
high-grade (>3 gpt Au) mineralization about 100 m along strike within a broad northeast -striking
mineralized corridor that contains FC17 -4 400 m to the northeast. This corridor is open to the
southwest and has not been tested to depth over much of its strike length of at least 700 m. We
were also successful in extending high -grade mineralization to depth in the South Mouth area
with hole FC17-7. Our 3D analysis and geological review is on -going and will assist in developing
an exploration action plan and next steps for 2018. ”
The Phase 1, seven -hole, 2,534 m drill program tested five widely-spaced target areas along 2.3
km of the 3.8 km -long gold system (Figure 1). Additional figures showing the drilling results are
available on the Company’s website at : www.canarc.net. Table 1 lists the composites for holes
CANARC RESOURCE CORP .
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FC17-4, 5, 6 and 7.
The broad zones of mineralization intersected in the drilling program extend mineralized zones
to depth and along strike and, together with previous exploration results, define bulk tonnage
mineralization that may be amenable to open pit mining. P revious efforts in the district focused
on the underground mining potential of the district by exploring narrow high-grade zones.
HOLE FC17-4
FC17-4 (450.3 m, N0 oE/-55o) tested the northeast -striking Half Moon (Stibnite area) quartz-vein
stock-work and shear zone system and extends mineralization about 70 m down -dip from
previous drilling. The 24.4 m zone grading 1.80 gpt with high -grade (>3 gpt Au) intervals is about
80 m down -dip of 4.18 gpt over 19.2 m intersected in hole 02FC -5. Deeper high -grade zones in
FC17-4, such as the 5.91 gpt Au over 3.7 m, are 60 m down dip of 49.2 m grading 1.71 gpt that
includes 12.31 g/t over 1.8 m and 5.40 g/t ov er 8.8 m in hole 02FC -1. Mineralization occurs in
quartz-vein stockworks in sulfidic siltstone accompanied by arsenopyrite and local stibnite. In
the area of FC17 -4, mineralization occurs within a moderately southeast -dipping wedge that is
about 180 m thick and has been traced down dip for ab out 300 m. Along with the Colorado area
discussed in the December 5, 2018, news release (holes FC17 -2 and 3), the Half Moon - Stibnite
area contains gold mineralization that may be amenable to Open Pit mining.
HOLE FC17-5
FC17-5 (359.4 m, S3 oW/-60o) tested the South Pit area. High -grade mineralization was
intersected in two zones. The upper zone, with 2.71 gpt over 3.7 and 2.28 gpt over 3.5 m lies
about 200 m below the small South Pit. It likely represents the down -dip extension of steep
mineralization exposed in the pit. However, the stronger, lower zone in the hole may represent
the southwestward extension of the northeast -striking Half Moon mineralized corridor
intersected in FC17 -4 about 400 m to the northeast. This is a significant finding and greatly
expands the potential of this northeast mineralized corridor, as it has been poorly tested
southwest of FC17-4. Intersections in this lower zone are essentially open below the end of the
hole at 359.4 m and include 4.19 gpt Au over 4.0 m with 13.40 gpt over 0.9 m, 3.37 gpt over 4.0
m, and 3.48 gpt over 12.8 m with 13.50 gpt over 0.6 m.
HOLE FC17-6
FC17-6 (370.6 m, N11oE/-50o) tested the eastern part of the South Mouth area, where shallow
open-pit mining was completed by Tenneco Minerals in 1989. Gold at South Mouth occurs
within east-striking, steep shear-type veins and in broader disseminated zones along a swarm of
mafic dikes. Low-grade mineralization was intersected in the upper parts of the hole and in the
bottom 6.1 m (1.29 gpt Au), with mineralization open at depth. Although no high grade gold (>3
gpt) was intersected in the hole, the lowe st zone, about 250 m below su rface, may mark the
western extension of the east -west trending Mid Realm structural zone, which contains surface
rock-chip samples to 4.6 gpt Au and has been poorly drill tested.
HOLE FC17-7
Hole Gold ppm From (ft) To (ft) Interval (ft) From (m) To (m) Interval (m) Comment
FC17-4 0.420 217.0 258.0 41.0 66.1 78.6 12.5
2.924 297.0 299.0 2.0 90.5 91.1 0.6
1.006 362.0 367.0 5.0 110.3 111.9 1.5
1.419 392.1 400.0 7.9 119.5 121.9 2.4
6.370 525.5 527.3 1.8 160.2 160.7 0.5
0.804 629.8 638.8 9.0 192.0 194.7 2.7
1.364 742.0 777.0 35.0 226.2 236.8 10.7
0.600 802.0 838.5 36.5 244.4 255.6 11.1
1.800 879.0 959.0 80.0 267.9 292.3 24.4
including 6.354 881.0 884.0 3.0 268.5 269.4 0.9
and including 5.578 906.0 911.2 5.2 276.1 277.7 1.6
and including 6.957 936.8 941.0 4.2 285.5 286.8 1.3
2.910 1026.0 1036.3 10.3 312.7 315.9 3.1
including 4.438 1034.0 1036.3 2.3 315.2 315.9 0.7
2.828 1080.0 1107.2 27.2 329.2 337.5 8.3
including 5.908 1095.0 1107.2 12.2 333.8 337.5 3.7
0.287 1227.0 1235.5 8.5 374.0 376.6 2.6
3.344 1302.0 1314.0 12.0 396.8 400.5 3.7
including 6.817 1307.0 1311.5 4.5 398.4 399.7 1.4
0.858 1328.2 1362.0 33.8 404.8 415.1 10.3
including 3.440 1344.0 1348.0 4.0 409.7 410.9 1.2
2.385 1461.0 1475.5 14.5 445.3 449.7 4.4
including 6.786 1466.5 1469.0 2.5 447.0 447.8 0.8
FC17-5 0.769 377.0 384.5 7.5 114.9 117.2 2.3
1.060 580.0 585.0 5.0 176.8 178.3 1.5
2.713 674.0 686.0 12.0 205.4 209.1 3.7
including 5.191 676.0 681.0 5.0 206.0 207.6 1.5
2.285 705.5 717.1 11.6 215.0 218.6 3.5
including 5.450 708.5 712.5 4.0 216.0 217.2 1.2
1.376 735.0 744.0 9.0 224.0 226.8 2.7
4.186 1052.0 1065.0 13.0 320.6 324.6 4.0
including 13.400 1052.0 1055.0 3.0 320.6 321.6 0.9
3.371 1097.0 1110.0 13.0 334.4 338.3 4.0
including 4.576 1097.0 1105.0 8.0 334.4 336.8 2.4
3.479 1133.0 1175.0 42.0 345.3 358.1 12.8
including 5.971 1140.0 1160.0 20.0 347.5 353.6 6.1 Includes 13.50 gpt over 0.6 m
and including 3.137 1171.0 1175.0 4.0 356.9 358.1 1.2
FC17-6 0.455 317.0 335.0 18.0 96.6 102.1 5.5
1.432 427.5 430.0 2.5 130.3 131.1 0.8
0.689 464.5 497.0 32.5 141.6 151.5 9.9
0.625 534.0 561.5 27.5 162.8 171.1 8.4
0.423 910.0 923.5 13.5 277.4 281.5 4.1
1.109 997.0 1002.0 5.0 303.9 305.4 1.5
1.294 1196.0 1216.0 20.0 364.5 370.6 6.1 Bottoms in mineralization
FC17-7 0.467 25.0 33.8 8.8 7.6 10.3 2.7
2.061 531.0 548.0 17.0 161.8 167.0 5.2
5.990 536.0 540.0 4.0 163.4 164.6 1.2 Hole failed to reach targeted length
FC17-7 (187.5 m, N14oE/-50o) tested the western part of the South Mouth area adjacent to the
range-front fault. The hole was designed to cross below a west -northwest striking mineralized
vein-stockwork zone mined shallowly by Tenneco. The mineralized zone is at least 35 m wide
and includes post -mining rock -chip s amples reaching 4.32 g/t Au over 2 m. FC17 -7 was
unfortunately abandoned prior to its target depth of 365 m due to drilling difficulties caused by
broken ground within a fault zone. The hole reached the south edge of the mineralized zone
about 100 m belo w surface. An interval of stockwork quartz veins at the bottom of the hole
assayed 2.06 gpt Au over 5.2 m containing 5.99 gpt over 1.2 m. The veining is adjacent to altered
mafic dikes and marks the south margin of the mineralized zone. Although success ful in
extending high -grade mineralization 100 m below surface, FC17 -7 did not completely test the
target.
Table 1. Gold Composites for Core Holes FC17-4, 5 6 and 7
*Composites calculated at 0.25 gpt cut over at least 2 consecutive samples or 1 gpt over 1 sample; 3 gpt cut in bold is used for
higher-grade and internal (included, italics) zones; assays by Bureau Veritas Minerals (Inspectorate America Corporation) by 30g
fire assay with AAS finish, with gravimetric analysis for values exceeding 10 gpt Au;
Figure 1. Fondaway Canyon district showing
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 as Vice President of Exploration.
The Company employs a rigorous QAQC protocol, including insertion of control samples at a
rate of 1 per 100 feet of core, o r approximately 1 per 22 samples. Control samples include a
blank and four gold standards at various grades. Samples were processed by Bureau Veritas
Minerals, an ISO -certified lab that meets the requirements of ISO/IEC 17025:2005 and ISO
9001:2015, and employs its own QAQC procedures, including duplicate analyses of core pulps
and rejects and insertion of its own standards and blanks. No significant discrepancies were
found in the assay results to date.
About Fondaway Canyon
The Fondaway Canyon project consists of 136 leased unpatented mining claims covering 2,220
acres in Churchill County, Nevada, 70 kms northeast of Fallon. A NI -43-101 technical report,
completed in April, 2017, prior to the drilling reported here, and available on SED AR, reported an
indicated resource of 2.05 million tonnes grading 6.18 gpt containing 409,000 ounces of gold and
an inferred resource of 3.20 million tonnes 6.40 gpt gold containing 660,000 ounces of gold. This
estimate does not include all mineralized areas in the project, such as the Pack Rat area tested by
hole FC17-1. The project contains a gold -bearing shear-zone system that is at least 3.8 km long
and up to 1 km wide.
"Catalin Kilofliski”
____________________
Catalin Kilofliski, Chief Executive Officer
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 acquiring, exploring and developing pre -production stage gold mines or properties in
the Americas.
For More Information - Please contact:
Catalin Kilofliski, 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.