Canarc Resource Options its Fondaway Canyon and Dixie Comstock Properties in Nevada to Getchell Gold ___________________________________________________________________________________________
Canarc Resource Options its Fondaway Canyon and Dixie Comstock
Properties in Nevada to Getchell Gold
___________________________________________________________________________________________
Vancouver, Canada – October 17, 2019 – Canarc Resource Corp. (TSX: CCM, OTC -QB:
CRCUF, Frankfurt: CAN) ( “Canarc”) announces that it has executed a binding Letter
Agreement (the “BLA”) with Getchell Gold Corp. (CSE: GTCH) (“Getchell”) whereby Getchell
will have an option for 4 years to acquire 100% of the Fondaway Canyon and Dixie Comstock
properties located in Churchill County, Nevada (both subject to a 2% NSR) for US$4 million in
total compensation to Canarc. The option also includes minimum annual work commitments
on the properties . Canarc a nd Getchell have agr eed to a binding 105-day exclusivity period
during which due diligence will be co nducted and the definitive option agreement will be
completed.
Scott Eldridge, Canarc's CEO, stated: "I look forward to working with Getchell while they conduct
further exploration on Fondaway Canyon and Dixie Comstock , allowing Canarc to focus on our
other projects. Given Canarc’s strategic shift towards exploring for new discoveries we are excited
to see Getchell’s commitment to spend US $1.45 million over 4 years on these two properties.”
Mr. Bill Wagener, CEO of Getchell, stated: “The acquisition of two gold properties with
historical estimates substantially enhances Getchell’s potential to accelerate the creation of
shareholder value through extensions and new discoveries in the mining friendly jurisdiction
of Nevada.”
Letter Agreement
Under the terms of the BLA, Getchell can acquire 100% of the two projects at any time on or
before the 4th anniversary of the agreement by paying Canarc US $2.0M in cash and US $2.0M
in Getchell shares.
Payment Terms:
• Upon signing the definitive agreement - US $100,000 in cash and US $100,000 in
shares
• 1st Anniversary – US $100,000 in cash and US $200,000 in shares
• 2nd Anniversary – US $100,000 in cash and US $300,000 in shares
• 3rd Anniversary – US $100,000 in cash and US $400,000 in shares
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: OTCQB
• Pay annual claim maintenance fees and advanced Royalty payments totaling
approximately US$100,000
• Grant Canarc a 2% NSR on the Fondaway Canyon and Dixie Comstock properties of
which half (1%) can be bought for US $1,000,000 per property
Work commitments:
• Year 1 – US $300,000
• Year 2 – US $400,000
• Year 3 – US $500,000
• Year 4 – US $250,000
The annual cash and stock payments to Canarc are part of the total US$4 million compensation
to acquire the two properties. Getchell must also honor the pre-existing NSR and advance
royalty commitments related to the properties.
Signing of the definitive option agreement is subject to satisfactory due diligence and
completion of sufficient financing by Getchell.
The Properties
Fondaway Canyon is an advanced stage gold property located in the Churchill County, Nevada.
The land package contains 136 unpatented lode claims. The property has a history of
exploration that includes drilling by Canarc in 2017 as well as gold and tungsten mining from
the 1950's through 1990.
Fondaway Canyon was the subject of a 43 -101 Technical Report dated April 03, 2017 by
Techbase International Ltd. confirming indicated resources of 409,000 ounces of gold at an
average grade of 6.18 g/t gold and Inferred resources of 660,000 ounces of gold at an average
grade of 6.4 g/t gold, using a cut-off grade of 3.43 g/t gold.
The Fondaway Canyon mineralization is contained in multiple quartz -sulphide shear zones
extending for 3.5 km along strike and covering a vertical range of 670 m. Shear -zone and
disseminatd gold mineralization is hosted by Mesozoic sedimentary rocks and is coincident
with a swarm of mafic to felsic dikes A number of exploration targets exist, including
extensions of known mineralized zones, deeper testing of exposed mineralization that has been
tested only very shallowly by past drilling, and poorly-explored mineralization known to occur
beneath shallow alluvial cover.
Dixie Comstock , also located in Churchill County, Neva da, consists of 28 unpatented lode
claims. The project is the site of intermittent mining from 1938 through 1970 that produced an
estimated 4,600 ounces of gold from 10,000 tons. There has been no exploration at the project
since 2008.
A historic geologic and mining study completed by Mine Development Associates of Reno,
Nevada, in March 1991 estimated a geologic resource of 146,000 ounces of gold at a grade of
1.063 g/t and a cutoff grade of 0.343 g/t.
The Dixie Comstock deposit is classified as a low-sulfidation epithermal system localized along
an east-dipping range-front normal fault. The mineralization is hosted by Jurassic gabbro and
mafic tuff in the footwall of the fault, by silicification within the fault zone, and within tuffaceous
sediments in the hanging wall of the fault.
Canarc considers these results to be historical, it has not completed sufficient work to
independently verify them.
Canarc looks forward to Getchell’s exploration and advancement of these two properties.
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.
"Scott Eldridge”
____________________
Scott Eldridge, Chief Executive Officer
CANARC RESOURCE CORP.
About Canarc - Canarc Resource Corp. is a growth-oriented gold exploration company focused
on generating superior shareholder returns by discovering, exploring and developing strategic
gold deposits in North America. The Company is currently advancing two core assets, each with
substantial gold resources, and has initiated a high impact exploration strategy to acquire and
explore new propert ies that have district -scale gold discovery potential. Canarc shares trade
on the TSX: CCM and the OTCQB: CRCUF.
For More Information - Please contact:
Scott Eldridge, CEO
Toll Free: 1-877-684-9700 Tel: (604) 685-9700 Cell: (604) 722-5381
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", "potentia l", "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 dif ferent 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; the 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 processes to operate
as anticipated; accidents, labor disputes and other risks of th e mining industry; delays in obtaining governmental approvals;
government regulation of mining operations; environmental risks; 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 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.