Canarc to Lease Fully Permitted Processing Plant in Zacatecas

Canarc Resource Corp. (TSX:CCM,OTCBB:CRCUF) announced that the government of Zacatecas has granted it the right to enter into an exclusive agreement to lease a 500-tonne-per-day processing plant. The plant is fully permitted.
As quoted in the press release:

Canarc plans to use the plant starting in 2016 for processing ore from Canarc’s recently acquired, fully permitted, El Compas Mine, located 20 kilometers away from the plant by road near the southern city limits of Zacatecas and for toll milling up to 100 tonnes per day of ore from local small miners.

Benefits for Canarc include:

• Eliminates the substantial capital cost and time required to construct a plant and tailings facility.
• Eliminates the cost and time to permit construction of a plant and tailings facility at the El Compas mine-site.
• Agreements are already in place for power and water to support plant operations.
• Zacatecas has a ready supply of professionals and workers skilled in plant operations.
• Significantly shortens the project schedule and reduces the completion risks for commencement of production in 2016.
• Will provide Canarc additional revenue from processing of local small miners’ ores.3

Catalin Chiloflischi, CEO of Canarc, commented:

Today’s announcement, combined with the recent acquisition of the El Compas mine, represents a major step forward by Canarc to transition into a producing gold-silver mining company in 2016. I would like to thank the Zacatecas government and the local small miners association for their confidence in Canarc and support for this agreement. We plan to do our best to make this project a success for everyone involved.

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