Canarc Releases PEA for El Compas Gold-Silver Project

Canarc Resource Corp. (TSX:CCM) released a preliminary economic assessment( PEA) for its Mexico-based El Compas gold-silver project. At a 5-percent discount after taxes, tax pools and mining duties, the project has a $32.9 million NPV and 84.3-percent IRR.
Other PEA highlights include:

• Total cash cost of $523 per Oz AuEq Oz and all in sustaining cost $614 per Oz AuEq
• Annual production of 18,000 Oz gold equivalent (AuEq) based on 78.6:1 gold: silver ratio
• 7.3 years mine-life at 450 tonnes per day producing a total of 126,000 net payable AuEq Oz
• $ 48.3 million net present value (“NPV”) and 102% internal rate of return (“IRR”) at a 5% discount rate before taxes and mining duties
• $7.6 million total pre-production capital expenditures
• 1.8 years after-tax capital pay-back period
• 6 months construction period and 9 months to steady state production

Catalin Chiloflischi, CEO of Canarc, commented:

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.

Click here to read the full Canarc Resource Corp. (TSX:CCM) press release.