Canarc Resource Corp.

Canarc Resource Corp.

March 21, 2005 14:16 ET

Canarc Resource Corp.: Final 2004 Drill Results Return Significant Gold Intercepts From JQA Prospect, Benzdorp Property, Suriname


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANARC RESOURCE CORP.

TSX SYMBOL: CCM
OTC Bulletin Board SYMBOL: CRCUF

MARCH 21, 2005 - 14:16 ET

Canarc Resource Corp.: Final 2004 Drill Results Return
Significant Gold Intercepts From JQA Prospect,
Benzdorp Property, Suriname

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2005) - Canarc
Resource Corp. (TSX:CCM)(OTCBB:CRCUF) announces that the final results
of the 2004 drill program from the JQA prospect on the Benzdorp property
in Suriname, including hole BZ04-51 not previously released, returned
several significant gold intercepts.

In 2004, Canarc Resource Corp. completed 3984 m of diamond drilling in
13 holes (BZ04-39 to 51) at the JQA prospect on the Benzdorp property.
The main goal of the program was to test a portion of the known 500 m by
500 m area of saprolite-hosted, porphyry-gold mineralization down into
bedrock.

All thirteen holes encountered significant porphyry gold mineralization
in saprolite starting at surface. Of the eleven holes that penetrated
bedrock, eight holes (BZ04-39, 42, 45-48, 50-51) intersected strong
porphyry gold-copper, stock-work mineralization over a 200 m by 200 m
area, successfully extending the JQA mineralized zone up to 350 m in
depth.

Drilling highlights, including the final 2004 hole BZ04-51 (not
previously released), are as follows:



Hole (No.) From (m) To (m) Length (m) Gold (gpt)
----------------------------------------------------------
BZ04-39 0.00 169.00 EOH 169.00 0.60
including 52.00 64.00 12.00 1.08
and 88.00 98.50 10.50 1.01
BZ04-42 0.00 400.81 EOH 400.81 0.48
including 0.00 120.40 120.40 1.14
BZ04-45 0.00 315.47 315.47 0.45
including 0.00 24.38 24.38 1.01
BZ04-47 0.00 237.69 237.69 0.52
BZ-04-51 0.00 256.03 256.03 0.55
including 0.00 44.20 44.20 1.09


The porphyry gold mineralization in each of these holes starts at
surface, implying a very low strip ratio of waste to ore. Higher grade
gold mineralization was typically intersected in the near surface,
oxidized saprolite and two of the holes bottomed in ore-grade
mineralization in bedrock. The JQA mineralized zone is wide open along
strike, and to a certain extent at depth.

Copper mineralization is a bit more intermittent than the gold
mineralization. It is typically leached out of the saprolite, and grades
0.1% to 0.2% Cu over 20 m to 220 m intervals in the bedrock. One of the
better holes, BZ04-50, returned 0.1% Cu over 224.0 m, including 0.29% Cu
over 18.29 m.

The Benzdorp property displays some distinct geologic similarities to
the 10 million oz Boddington porphyry gold-copper deposit (400 million
tonnes @ 0.8 gpt Au and 0.12% Cu) now being developed by Newmont /
Anglogold / Newcrest in western Australia. However, certain gold
deposits in South America might be more comparable from a mine operating
point of view.

The potential for low cost, open pit, heap leaching of soft saprolite,
low grade, gold mineralization as discovered at Benzdorp is highlighted
by the 1 million oz. Sao Francisco deposit now being developed by Yamana
in Brazil. Yamana is investing US $46 million in capital to develop an
11,000 tonne per day, heap leach gold mine with anticipated operating
costs of US $190 per oz. Yamana's ore reserves are estimated at 48
million tonnes grading 0.67 grams per tonne gold with 80% gold
recoveries.

The potential for low cost, bulk mining of bedrock, low grade,
gold-copper ores as discovered at Benzdorp is exemplified by the 2.1
billion lb, 2.5 million oz. Chapada porphyry copper-gold deposit is also
being developed by Yamana in Brazil. Capital costs are estimated at US
$155 million to build a 35,000 tonne per day, open pit copper-gold mine
producing a flotation concentrate at an approximate US $175 per oz gold
eq. operating cost. Yamana's ore reserves are 310 million tonnes grading
0.34% copper and 0.25 grams per tonne gold, with anticipated recoveries
of 88% for copper and 53% for gold.

In 2005, Canarc plans to further assess the metallurgical
characteristics of saprolite and bedrock mineralization from the JQA
prospect in order to determine the viability of gold recovery by heap
leaching vs. CIL leaching vs. gravity and flotation. Preliminary
metallurgical testing was completed in 2004 and the results will be
released shortly.

Canarc also plans to conduct a Phase 3 drilling program of about 3000 m
in approximately 15 holes in order to extend the area of JQA
mineralization in bedrock and to test other targets. The Company is
conducting due diligence property tours with major gold companies at
this time with a view to a possible strategic partnership or financing
in order to move the Benzdorp project forward.

Godfrey Walton, M.Sc, P.Geo., is the Qualified Person who supervised the
Phase 2 drill program on the Benzdorp property. He instituted a Quality
Control sampling program of blanks and duplicates to monitor the
integrity of all assay results. All drill core is split by Canarc
personnel at the Benzdorp camp and flown to the Inspectorate-affiliated
commercial laboratory in Paramaribo, Suriname. Core samples are dried,
crushed, split and a 30 gram sub sample is taken for analysis. Gold was
determined by fire assay with an atomic absorption (AA) finish. Copper
was also measured by AA. Selected samples were sent to Chemex
laboratories in Vancouver, BC, for additional quality control.

Canarc Resource Corp. is a growth-oriented, gold exploration and mining
company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF).
The Company's principal assets are its 100% interest in the New Polaris
gold deposit in British Columbia and its 80% option on the Benzdorp gold
property in Suriname. Major shareholders include Barrick Gold Corp. and
Kinross Gold Corp.

On Behalf of the Board of Directors

CANARC RESOURCE CORP.

Bradford J. Cooke, President and C.E.O.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Canarc Resource Corp.
    Gregg Wilson
    (604) 685-9700 or Toll Free: 1-877-684-9700
    (604) 685-9744 (FAX)
    invest@canarc.net
    www.canarc.net
    The TSX has neither approved nor disapproved the contents of this news
    release.