Mining News: Northern Neighbors: New Polaris draws C$10M infusion

Canarc Resource Corp. Feb. 25 reported that a wholly owned subsidiary of Australia-based PanTerra Gold Ltd. has the option to earn 50 percent interest in Canarc’s New Polaris gold mine by investing C$10 million in the Northwest Canada project over the next 2.5 years. Aimed at advancing New Polaris through feasibility and permitting, the agreement provides for Panterra to complete three stages of predevelopment activities that include drilling, metallurgical work, environmental permitting, detailed mine planning, tailings dam design, preliminary engineering and completion of a feasibility study. Canarc says the ultimate goal is to produce refractory gold concentrate at New Polaris that would be shipped for processing into doré gold bars at Panterra’s Albion plant in the Dominican Republic. The Albion process oxidizes sulfide ore, rendering gold and silver amenable to extraction by standard carbon-in-leach processing. Upon completion of the requisite work and investment, PanTerra will have earned a 50 percent interest in New Polaris and be appointed manager. The Australia-based company can gain a majority interest in the project by purchasing 1 percent from Canarc within six months of completion of the feasibility study at a cost of 1 percent of the mine’s net present value as established by the feasibility study using a 10 percent discount rate. New Polaris is a 1.1-million-ounce high-grade gold deposit located in northwestern British Columbia about 60 kilometers (37 miles) east of Juneau.

—Shane Lasley