Business
Canarc Announces Robust Preliminary Economic Assessment on the New Polaris Gold Mine Delivering Post Tax IRR of 38%
VANCOUVER, BC / ACCESSWIRE / March 4, 2019 / Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF,...
About this update from Canagold Resources Ltd
[{"type":"text","content":"Canarc Announces Robust Preliminary Economic Assessment on the New Polaris Gold Mine Delivering Post Tax IRR of 38%VANCOUVER, BC / ACCESSWIRE / March 4, 2019 / Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN) announces the completion of an updated NI 43-101 preliminary economic assessment report (\"PEA\") by Moose Mountain Technical Services (Moose Mountain\") for the past producing, high-grade New Polaris gold mine project in northwestern British Columbia.Scott Eldridge, Canarc's CEO, stated: \"This new PEA establishes significantly improved economics for our New Polaris gold mine project, demonstrating the potential for a high-margin, low-cost gold mine. The new study incorporates an onsite flotation, bio-oxidation and CIL leaching facility to produce doré gold bars, a game-changing modification that offers substantial operational and financial advantages over the previous production plan of shipping flotation concentrates by barge and truck to offshore facilities for final processing. We can now model New Polaris as a fly-in, fly-out mining operation.\"Highlights: Post-tax internal rate of return of 38% Post-tax net present value at 5% of US$216 million Post-tax project payback of 2.7 years Cash operating cost: US$433/oz Au Initial capital expenditure of US$111 million ROM production of 2.3 Mt of 10.3 g/t over 8.7-year mine life Mill throughput of 750 tonnes per day with a process recovery of 90.5% producing 693,000 ozs gold Average annual life of mine production: 80,000 oz. goldThe estimated project economics for Canarc to build and operate a 750 tonne per day gold mine at New Polaris using bio-oxidation followed by a leaching process to produce 80,000 ounces of gold per year in doré bars at site are reasonably achievable for this project.This new processing option significantly enhances the economics of the project and simplifies transportation logistics at this remote site by eliminating the need for seasonal barging of large quantities of concentrate along the Taku River to a third-party treatment facility.Using updated parameters in the base case economic model for the gold price (US$1300 per oz), $CA/$US exchange rate (0.77), cash costs (US$433 per oz) and AISC (US$510 per oz ), the updated Moose Mountain PEA shows an after-tax NPV (5%) of CA$280 million with an after-tax Internal Rate of Return...