Canarc Intersects Significant Gold Mineralization in First Three Drill Holes at Fondaway Canyon Project in Nevada, Including 2.83 Grams per Tonne Gold over 65.4 Meters
News Release
Canarc Intersects Significant Gold Mineralization in First Three Drill Holes at
Fondaway Canyon Project in Nevada,
Including 2.83 Grams per Tonne Gold over 65.4 Meters
Vancouver, Canada – December 5, 2017 – Canarc Resource Corp. (TSX: CCM, OTC -BB: CRCUF,
Frankfurt: CAN) has intersected significant gold mineralization in the first three drill holes of its
seven-hole drill program recently completed at its Fondaway Canyon Project in Nevada. Assays
for holes four through seven are pending.
Drilling Highlights Include:
65.4 meters (m) grading 2.83 grams per tonne (gp t) Au (including 10.20 gpt Au over 1.4
m, 7.69 gpt Au over 9.8 m and 7.70 gpt Au over 3.7 m) in hole FC17-3
62.9 m grading 1.77 gpt Au (including 4.39 gpt Au over 3.5 m, 4.48 gpt Au over 3.2 m and
6.15 gpt Au over 3.0 m) in hole FC17-2
30.1 m grading 1.45 gpt Au and 6.1 m grading 3.74 gpt Au (including 0.6 m grading 14.20
gpt Au) in hole FC17-1
* True widths of mineralization are estimated to be about 35% in hole FC17 -1 and 90% (FC17 -2 and FC17 -3) of
reported core lengths. True widths estimates are preliminary and are 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 the first three drill holes are very
encouraging in terms of the mineralization widths and grade and have significantly extended the
depth of the known mineralization. It is becoming c lear that Fondaway Canyon offers the
potential to develop bulk tonnage gold mineralization suitable for open pit mining.
We tested five separate targets with seven drill holes in this Phase 1 drill program. Drill holes
FC17-2 and 3 both successfully extended the Colorado zone mineralization below the previously
drilled mineralization. These drill holes also show that the Co lorado zone could connect with the
adjacent Stibnite zone to the east with more drilling.
The drill program wrapped up last week, the remaining core samples have been cut and shipped,
and we expect to release assays for holes 4 -7 in early January 2018. A t that time, we will begin
the evaluation of an open pit mining potential at Fondaway and will prioritize the target zones for
a possible Phase 2 drill program next year.”
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
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.
The broad zones of mineralization intersected in the first three holes extend the previous
mineralized zones to depth 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 explor ing narrow high -grade zones. Assays are pending on the remaining four holes and
should be made available in early January 2018.
HOLE FC17-1
Hole FC17 -1 (365.8 m, N42 oW/-50o) tested the Pack Rat target, where a northeast -striking
quartz-vein stock -work and shear zone system had been explored by previous shallow drilling
that included hole P-19 with 4.2 gpt Au over 10.7 m and hole TF-296 with 3.1 gpt Au over 18.3 m.
Hole FC17 -1 tested below these previously drilled holes and int ersected several high -grade
zones, including 3.74 gpt Au over 6.1 m containing 14.2 gpt Au over 0.6 m. Significantly, the hole
bottomed in 30.1 m grading 1.45 gpt in a quartz -vein stock-work within black shale containing
very fine -grained "sooty" pyrite a t the bottom of the hole. This intersection extends
mineralization 200 meters down the dip of the vein system. The Pack Rat zone is open to the
northeast and southwest along strike and is at least 225 m long. Mineralization is contained
within a steeply-dipping zone about 180 m in width that has now been traced down dip for 375
m and remains open at depth.
HOLE FC17-2
Hole FC17 -2 (426.7 m, N30 oW/-45o) tested the southern part of the Colorado zone 400 m
northeast of FC17 -1. The Colorado zone lies at the northwest corner of a district -scale dilation
zone where the northeast -striking Pack Rat fault zone intersects west -striking mineralized
structures and dikes (see the Company's July 5, 2017 news release). Two mineralized sections
were intersected . A n upper zone from 189.3 to 210.9 m contain s 2.33 gpt Au over 9.8 m
(including 6.10 gpt Au over 1.5 m and 3.51 gpt Au over 1.8 m) and 2.27 gpt Au over 9.8 m
(including 7.85 gpt Au over 2.1 m). The highest -grade sample in this upper zone is 11.3 gpt Au
over 0.61 m. The lower mineralized zone from 253.1 to 316.1 m contains 62.9 m grading 1.77
gpt Au (including 4.39 gpt Au over 3.5 m, 4.48 gpt Au over 3.2 m and 6.15 gpt Au over 3.0 m).
HOLE FC17-3
Hole FC17 -3 (373.4 m, N5 oE/-50o) was collared 170 m northwes t of FC17 -2 and tested the
northern and shallower part of the Colorado gold zone 100 m up -dip of FC17 -2. FC17 -3
intersected 65.4 m grading 2.83 gpt Au that is the up-dip continuation of the lower zone in FC17 -
2. S ignificant high-grade intersections include 10.20 gpt Au over 1.4 m, 7.69 gpt Au over 9.8 m
(with 14.3 gpt Au over 0.6 m and 17.6 gpt Au over 1.4 m), 7.70 gpt Au over 3.7 m (with 11.400
gpt Au over 1.3 m) and 7.062 gpt Au over 1.5 m).
Hole Gold ppm From (ft) To (ft) Interval (ft) From (m) To (m) Interval (m)
FC17-1 0.530 199.5 207.0 7.5 60.8 63.1 2.3
3.743 248.0 268.0 20.0 75.6 81.7 6.1
including 14.200 251.0 253.0 2.0 76.5 77.1 0.6
and including 5.663 260.0 265.0 5.0 79.2 80.8 1.5
1.658 463.0 491.0 28.0 141.1 149.7 8.5
including 4.747 472.0 476.0 4.0 143.9 145.1 1.2
and including 3.157 481.0 486.0 5.0 146.6 148.1 1.5
1.150 503.5 520.5 17.0 153.5 158.6 5.2
0.708 528.0 549.0 21.0 160.9 167.3 6.4
0.313 567.0 588.0 21.0 172.8 179.2 6.4
0.491 613.0 623.0 10.0 186.8 189.9 3.0
1.479 685.0 705.0 20.0 208.8 214.9 6.1
including 6.411 693.0 696.0 3.0 211.2 212.1 0.9
1.791 889.0 897.8 8.8 271.0 273.6 2.7
2.102 1047.0 1070.0 23.0 319.1 326.1 7.0
including 3.584 1062.0 1066.5 4.5 323.7 325.1 1.4
1.456 1091.3 1190.0 98.7 332.6 362.7 30.1
FC17-2 0.496 404.5 415.5 11.0 123.3 126.6 3.4
0.571 517.0 529.0 12.0 157.6 161.2 3.7
1.117 579.0 584.0 5.0 176.5 178.0 1.5
2.327 621.0 653.0 32.0 189.3 199.0 9.8
including 3.512 621.0 627.0 6.0 189.3 191.1 1.8
and including 6.106 632.0 637.0 5.0 192.6 194.2 1.5
2.270 660.0 692.0 32.0 201.2 210.9 9.8
including 7.851 660.0 667.0 7.0 201.2 203.3 2.1
1.985 733.0 750.0 17.0 223.4 228.6 5.2
0.847 807.0 817.0 10.0 246.0 249.0 3.0
1.774 830.5 1037.0 206.5 253.1 316.1 62.9
including 4.392 882.0 893.5 11.5 268.8 272.3 3.5
and including 4.479 932.0 942.5 10.5 284.1 287.3 3.2
and including 6.148 1007.0 1017.0 10.0 306.9 310.0 3.0
FC17-3 1.956 87.0 100.5 13.5 26.5 30.6 4.1
0.561 268.7 276.0 7.3 81.9 84.1 2.2
0.789 285.0 330.5 45.5 86.9 100.7 13.9
0.529 354.0 362.5 8.5 107.9 110.5 2.6
0.500 381.0 388.5 7.5 116.1 118.4 2.3
2.828 402.5 617.0 214.5 122.7 188.1 65.4
including 10.200 402.5 407.0 4.5 122.7 124.1 1.4
and including 3.512 416.0 420.0 4.0 126.8 128.0 1.2
and including 3.724 429.0 432.8 3.8 130.8 131.9 1.2
and including 3.017 448.0 453.5 5.5 136.6 138.2 1.7
and including 7.692 507.0 539.0 32.0 154.5 164.3 9.8
and including 7.707 591.0 603.0 12.0 180.1 183.8 3.7
and including 7.062 612.0 617.0 5.0 186.5 188.1 1.5
Preliminary modeling indicates that mineralization at Colorad o lies within a south -dipping
corridor that is approximately 150 m thick and can be traced down dip from surface for
approximately 450 m.
Table 1. Gold Samples Composites for Core Holes FC17-1, 2 and 3*
*Composites are 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) zones; composites may contain minimal internal waste; assays by Bureau Veritas Minerals
(Inspectorate America Corporation) by 30g fire assay with AAS finish, with gravimetric analysis for values exceeding 10 gpt A u;
mineralized lengths may not equate to true width.
Figure 1. Fondaway Canyon district showing the distribution of mineralized veins (red lines),
surface samples (red dots, >2 gpt Au), mineralized drill hole collars (red triangles) and the
Company's 2017 drill holes (blue).
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 US Exploration Manager.
The Company employs a rigorous QAQC pro tocol, including insertion of control samples at a
rate of 1 per 100 feet of core, or 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 SEDAR, 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.