Positive PEA For El Compas Gold-Silver Mine Project 

 

VANCOUVER, BC - Canarc Resource Corp. reported the results of a Preliminary Economic Assessment (PEA) prepared by Mining Plus Canada Pty Ltd. on the Company's 100% owned El Compas Gold-Silver Mine, located in Zacatecas, Mexico.

Canarc CEO Catalin Chiloflischi said, "The PEA clearly indicates that our El Compas Mine has the potential to be an economically robust, low cost, high margin, rapid payback project even at lower metal prices, thanks in part to its high grades, low costs and low capital expenditure requirements. We will now turn our focus to arranging the capital financing needed to develop this attractive gold-silver mine and place it into production."

The PEA contemplates a 7-year operation involving underground mining using a local mining contractor to produce approximately 18,000 payable gold equivalent ounces per year. Mineralized material will be trucked twenty kilometers from the El Compas Mine to the government-owned La Plata processing plant on which Canarc has secured a long-term lease option with the Zacatecas government.

Processing will involve crushing, grinding and flotation followed by leaching of the flotation concentrate. A 50 tonne per day leach and Merrill Crowe recovery circuit will be added to the existing plant to produce doré bars. Life of Mine payable production will total 115,000 ounces of gold and 886,000 ounces of silver for a total of 126,000 ounces of gold equivalent.