Canarc Resource Corp.

Canarc Resource Corp.

March 29, 2005 13:08 ET

Canarc Resource Corp.: Metallurgical Testwork Indicates Excellent Gold and Copper Recoveries for JQA Mineralization, Benzdorp Property, Suriname


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANARC RESOURCE CORP.

TSX SYMBOL: CCM
OTC Bulletin Board SYMBOL: CRCUF

MARCH 29, 2005 - 13:08 ET

Canarc Resource Corp.: Metallurgical Testwork
Indicates Excellent Gold and Copper Recoveries for JQA
Mineralization, Benzdorp Property, Suriname

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2005) - Canarc
Resource Corp. (TSX:CCM)(OTCBB:CRCUF) announces that excellent gold and
copper recoveries are indicated by preliminary metallurgical testwork on
drill core from the JQA prospect, Benzdorp property, Suriname.

Resource Development Inc. ("RDI") were retained to conduct flotation and
leach tests on low grade, gold-copper, bedrock mineralization in the JQA
prospect drill core. Flotation tests on a relatively coarse grind size
of 80% passing 65 mesh achieved 80% copper and 57% gold recoveries into
the rougher concentrate without optimization. This con was then upgraded
to a +20% copper concentrate in a cleaner circuit.

Initial leach tests indicate that up to 100% of the gold and 53.5% of
the copper are cyanide soluble. A 48-hour cyanide bottle roll leach test
returned 80% gold and 25% copper recoveries with 1.73 kg. per tonne
cyanide consumption. A similar 12-hour test on the rougher tailings
recovered 100% of the gold, with only 0.25 kg per tonne cyanide
consumption.

Gravity testwork by Knelson Concentrators indicates up to 18% gold
recoveries are possible using a very fine grind. However, RDI concludes
that a coarser grind and a two stage process of rougher flotation
followed by cyanide leaching of the tailings appears to be a preferred
method to recover up to 100% of the gold in Benzdorp ores.

Because of the high gold solubilities in cyanide, additional
metallurgical testing is recommended to assess the potential for both
heap leaching and CIL leaching of both saprolite and bedrock
mineralization. Optimization testwork is also planned on crush and grind
sizes and flotation recoveries.

Heap leaching of low-grade gold ores could be viable for Benzdorp, given
the similarity of grade with the Sao Francisco mine in Brazil currently
being developed by Yamana. Flotation and leaching of low-grade
gold-copper ores could also be viable for Benzdorp, given the success of
the Paracutu mine of Kinross in Brazil at processing 0.47 gpt gold ores
with 78% gold recovery.

Bradford J. Cooke, M.Sc. P.Geo., is the Qualified Person who
commissioned the metallurgical testwork for the Benzdorp property. Gold
was determined by fire assay with an atomic absorption (AA) finish.
Copper was also measured by AA.

Canarc Resource Corp. is a growth-oriented, gold exploration and mining
company listed on the TSX (symbol CCM) and the OTCBB (symbol CRCUF). The
Company's principal assets are its 100% interest in the New Polaris gold
deposit, 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 Exchange has neither approved nor disapproved the contents of
    this news release.