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Canarc polishes BC gold mine PEA

The Tulsequah river near Canarc Resources' New Polaris gold project, in British Columbia.

The Tulsequah river near Canarc Resources' New Polaris gold project, in British Columbia.

21st May 2020

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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Shares in Toronto-listed Canarc Resources jumped 15% on Wednesday as the company announced an update of its 2019 preliminary economic assessment (PEA) of the high-grade New Polaris gold mine project in British Columbia, reflecting a higher gold price.

The 2019 PEA is based on a base case gold price of $1 300/oz and a Canadian to US dollar exchange rate of 0.77. This generated an after-tax net present value (NPV) of $216-million and an internal rate of return of 38%.

At a $1 500/oz gold price and a 0.71 exchange rate, the forecast economics significantly improve to a $333-million aftertax NPV and a 56% aftertax IRR.

Other benefits of the lower exchange rate include reductions of the cash operating cost from $433/oz to $400/oz of gold, and of the payback period from 2.7 years to 1.9 years.

"These updated economic assumptions clearly demonstrate the potential for our New Polaris gold mine project to become a high-margin, low-cost gold mine,” said Canarc CEO Scott Eldridge.

The company is evaluating the potential to build and operate a 750 t/d gold mine at New Polaris using flotation to produce a high-grade gold sulphide concentrate, bio-oxidation to oxidise the concentrates, and leaching of the oxidised concentrates to produce 80 000 oz/y of gold in doré bars on site.

The mine will operate for 8.7 years.                     

Canarc closed 15% higher at C$0.075 a share on Wednesday.

Edited by Creamer Media Reporter

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