Canarc Reports NI 43-101 Resource Estimate For the Fondaway Canyon Property, Nevada, USA
News Release
Canarc Reports NI 43-101 Resource Estimate
For the Fondaway Canyon Property, Nevada, USA
Vancouver, Canada –11 April 2017 – Canarc Resource Corp. (TSX: CCM, OTC -BB: CRCUF,
Frankfurt: CAN) announces that it has received an updated, independent, resource estimate
for the Fondaway Canyon property located in Churchil l County, Nevada, USA. A technical
report (“technical report”) documenting the new resource estimate will be filed on SEDAR
within 45 days in accordance with National Instrument 43 -101 Standards of Disclosure for
Mineral Projects.
Fondaway Canyon is an adv anced stage gold exploration property located in Churchill
County, Ne vada, USA, part of an 11 -property package acquired by Canarc in March 2017.
The proper ty includes 136 unpatented claims covering 900 hectares, and has a history of
previous surface exploration and open pit gold mining in the late 1980’s and early 1990’s.
Canarc commissioned Techbase International of Reno, Nevada to complete a technical
Report for the Fondaway Canyon Project . The updated resource estimate included in the
technical report is shown in the table below.
Resource
Category
Tonnes1
(t)
Grade
(g/t) Au
Ounces2
(oz) Au
Type
Indicated 2,050,000 6.18 409,000 UG/Sulfide
Inferred 3,200,000 6.40 660,000 UG/Sulfide
1 Resource based on cut-off of 1.8m horizontal width >= 3.43 g/t
2 Rounding differences may occur
1. CIM Definition Standards were followed for reporting the Mineral Resource estimates
2. Mineral Resources are reported on a dry, in-situ basis. A bulk density of 2.56 tonnes/m3 was applied for volume to
tonnes conversion.
3. The reporting cutoff grade of 3.43 g/t was based on capital and operating costs for a similar project, the three-
year trailing average Au price of $US 1,225/ oz Au , a metallurgical recovery of 90%, and an underground mining
method suitable for steeply-dipping veins.
4. Mineral Resources are estimated from surface to approximately 400 m depth.
5. The quantity and grade of Inferred Resources in this estimate are uncertain in nature, there has been insufficient
exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if
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further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.
Environmental, geotechnical, permitting, legal, title, taxation, socio‐political, marketing or other relevant issues
could materially affect the mineral resource estimate.
The Resource Estimate was prepared by Michael Norred, SME Registered Member 2384950;
President of Techbase International, Ltd (Techbase) of Reno, Nevada and Simon Henderson,
MSc, MAusIMM CP 110883 (Geology); Consulting Geologist with Wairaka Rock Services
Limited of Wellington, New Zealand, both Qualified Persons (QPs), as defined by NI 43-101.
The Fondaway Canyon mineralization is contained in a series of 12 stee ply dipping, en -
echelon quartz-sulfide vein-shear zones outcropping at surface and exten ding laterally over
1200m and vertically to depths of > 400m. The Paperweight, Half-moon and Colorado zones
host the bulk of the resources , with the remainder in paralle l veins or splays of the major
vein-shears.
A total of 591 historic drill holes were validated for r esource estimation, with coordinate
information and down hole assays. These included 8411m of core drilling in 49 holes and
40,675m of RC drilling in 551 holes. Drill core was inspected at the Fallon, NV storage facility
and assay certificates were viewed to verify gold intercept grades used in the estimate.
Check assays were run systematically on approximately 5% of the total assays, including 23%
of assays greater than 3.43 g/t. Duplicate assays were run on slightly less than 1% of the
total assays, including 14% of assays greater than 3.43 g/t. Consistency was good for the
check assays and duplicates, with correlations greater than 98% in each case.
A Mineral Resource was estimated for each vein using polygonal estimation on drill
intercepts projected onto a vertical long -section parallel to the average strike direction of
that vein. The polygons were truncated at faults that were interpreted to limit the e xtent of
the mineralization.
The Mineral Resources are reported at a cut -off of 3.43 g/t, over a minimum horizontal
width of 1.8m, based on projects of similar siz e, a gold price of $US 1,225 per o z, a
metallurgical recovery of 90%, and an underground mining method suitable for steeply -
dipping veins. A processing method has not yet been selected.
Metallurgical testing showed that acceptable recoveries could be obtained from the sulfide
material by using an oxidizing pre-treatment, followed by CIL leaching, with recoveries up to
86 to 95%. Further metallurgical testing and design work will be needed in order to design
the most cost-effective method
No capping or cutting of grades was applied. The ass ayed grades were found to be very
consistent when compared to check assays and duplicates, as well as between twinned
holes. The consistency in assay results was interpreted as being due to the very fine -grained
nature of the gold mineralization (1 to 10 µm). This consistency provided confidence that the
higher-grade assays were reasonable.
Figure 1 shows the location by zone of the Fondaway Canyon resources.
The current Mineral Resource estimate relates only to the eastern half of the 4000m east -
west striking mineralized system, and does not include any estimates for near -surface, oxide
mineralization. Significant exploration potential remains both in the eastern section, and
relatively untested western zone.
Multiple exploration targets have been identif ied along favorable structural extensions that
have potential to host additional significant gold resources. A 30-hole drill program,
estimated to cost $2.0 million, has been recommended by Techbase International to explore
these identified targets as well upgrade more of the resources into the indicated category.
During April, with the support of two very experienced Nevada based geologists, Canarc will
initiate a comprehensive review of all of its newly acquired Nevada properties to evaluate
the potential of and prioritize exploration plans for each property.
Mr. Catalin Chiloflischi, CEO of Canarc, stated: “The c onfirmation of previous resource
estimates for the Fondaway Canyon project marks another important step forward for
Canarc towards expanding our gold resource base . During 2017, Canarc is planning to
allocate additional resources in order to furt her advance its Nevada projects . We are ve ry
excited about Canarc’s new focus and oportunities in Nevada.”
Qualified Persons:
(1) Michael Norred, SME Registered Member 2384950; President of Techbase
International, Ltd (Techbase) of Reno, Nevada is a “Qualified Person” as defined by NI
43-101, has reviewed and approved the technical and scientific information on the
Fondaway Canyon P roject contained in this release. Michael Norred is independent of
Canarc.
(2) Simon Henderson, MSc, MAusIMM CP 110883 (Geology); Consulting Geologist with
Wairaka Rock Services Limited of Wellington, New Zealand both Qualified Persons
(QPs), as defined by NI 43-101 has reviewed and approved the technical and scientific
information on the Fondaway Canyon Project contained in this release. Simon
Henderson is independent of Canarc.
(3) Garry Biles, P. Eng, President & COO for Canarc Resource Corp, is the Qualified Pe rson
who reviewed and approved the contents of this news release. Garry Biles is not
independent of Canarc by the nature of his position with the company.
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 is currently focused on
acquiring operating or pre -production stage gold -silver-copper mines or prope rties in the
Americas and further advancing its gold properties in Nevada and BC.
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 planned completion of the Acquisition, potential strategic M&A transactions being contemplated by Canarc, the
future performance of Canarc, and the Company's plans and exploration programs for its mineral properties, including the timi ng
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 actual
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 ris ks 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 est imation
of mineral resources; commodity prices; changes in general economic conditi ons; market sentiment; currency exchange rates; the
Company's ability to continue as a going concern; the Company's ability to raise funds through equity financings; risks inher ent in
mineral exploration; risks related to operations in foreign countries; f uture prices of metals; failure of equipment or processes 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 ris ks; title disputes or claims; limitations on insurance
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 result s 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 prov e 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.