Provided by: “Gold Forecaster – Global Watch”

www.GoldForecaster.com | February, 2007

Canarc Resource Corp. discovers and develops gold mines throughout the Americas, to build shareholder value.   It is a growth-oriented company listed on the Toronto Stock Exchange [Symbol: CCM] and on the OTC Bulletin Board [Symbol: CRCUF].   Shareholders include Barrick Gold, and the Veneroso Gold Certificates.

q      The company is primarily focused on re-starting the “Polaris - Taku Gold Mine” in British Columbia, now called New Polaris and just released an updated Independent NI 43-101 Resource Estimate.

q       The company is exploring the gold potential of a property in Suriname, South America called Benzdorp.

q       Canarc is already generating a modest annual income through its Royalty interest in the Bellavista gold mine in Costa Rica.

q       Canarc plans to acquire a major new gold project.

Symbol: TSX – CCM | OTCBB - CRCUF

Market Cap: C$49.9 Million

Outstanding Shares: 68.4 Million

52 Week Low | High: C$0.56 | C$0.95

Performance:

Canarc has performed quite well last year, returning back from the gold market doldrums of 2005 and rising to over US $0.80 during the run-up in gold prices to $730 an ounce in early 2006. With the subsequent consolidation of gold prices, Canarc has managed to outperform most of its peers by maintaining most of its dramatic gains in the early part of 2006.

Solid support exists in Canarc’s share price with great technical support in the mid-$0.50’s and around $0.60 a share, what appears to be a good foundation under the stock. The current stock price has seen itself stuck in a range from the mid-$0.50s to around $0.80, consolidating gains and building a floor for the next leg higher. Just off expectations of the gold price heading back to the $730 highs and to new records, one could expect Canarc to quite easily break the $0.80 resistance area on the next leg higher in the gold bull market.

To obtain a US Dollar quote on Canarc Resource Corp. symbol CRCUF: OTCBB click here. For its TSX Canadian dollar quote, symbol CCM click here.

The Average Gold Price

With the gold moving back to the mid $650’s, having hit $730 previously in 2006, we expect the average gold price to remain well above $600 for the foreseeable future and more likely to move back above $700 an ounce in the coming year.

Predators lining up?

Consequently, the search for new reserves is growing strongly.  This past year has seen these supplied primarily through mergers and acquisitions, a process, which is insufficient to ensure a steady or rising supply of gold.   This leaves the future pointing to far higher prices in the medium to long-term.  As such companies such as Canarc are being very closely watched as they move to confirmation of their resources and reserves.   With a shareholder such as Barrick Gold, Canarc is no exception.

But potential predators or partners are not limited to Barrick, but include the broad spectrum of established gold mining companies, including South African Producers.   Indeed, hot on the heels of Barrick are the South African producers, hungry for deposits OUTSIDE South Africa including Goldfields, Harmony, DRD Gold and AngloGold.   With the current South Africa government biting profits in ever-greater quantities, and scheduled to turn on, not just to profits, but now, through Royalties, turnover itself!

For example, the acquisition by Goldfields of Bolivar and its 1.3 million ounce Choco 10 property, tells us just how desirable the British Columbia’ New Polaris and the Benzdorp property in Suriname really are.

Canarc more desirable than just its assets.

Undoubtedly, Canarc has moved onto their radar screen.   The company is effective as an explorer, making deals and bringing potential mines to the feasible stage.   Of course a vital feature of the company is a healthy Balance Sheet and a sound cash flow, covering all on-going costs.

Bradford Cooke, M.Sc., P.Geo

Professional geologist with 28 years experience in the mining industry, specializing in the discovery and development of mineral deposits. [exploration geologist, with many years experience in the field and financial markets – he is also the CEO of Endeavour Silver] the Chairman and C.E.O.

Bruce Bried P. Eng

Mr. Bried is a professional mining engineer with over 28 years experience in the engineering, development, operation, reclamation and management of producing mines. He specializes in underground vein gold/silver mines, having worked for many years with Dickinson Mines (now Goldcorp) in Red Lake, ON and New Denver, BC, and then with Homestake Mining, where he was Mine Superintendent at the Hemlo and Eskay Creek gold mines and General Manager of the Snip and Lead gold mines. – as the President and Chief Operating Officer, the company is well-placed to bring far more than the assets in hand to the table in future days.

More:  http://canarc.net/overview/management/

We hope to see at least one brand new story [no information available yet] within the near future.

The prospect of one of the major mining companies buying either one or both of Canarc’s two major assets turns Canarc into a high potential investment.

New Polaris – Northwestern British Columbia.

Canarc owns a 100% interest (subject to a 10%-to-15% net profits royalty) in the New Polaris gold project in western Canada. 

The most important of Canarc’s properties, this mine is, currently, a small high grade underground mine that produced in the past.  Located 60 miles south of Atlin, B.C. and 40 miles east of Juneau, Alaska, near the B.C.-Alaska border.  

Gold mineralization occurs along three major shear sets:

1. AB zones, trending northwest/southeast,
2. Y zones- trending north/south,
3. C zones- trending east/west

C zones generally link with the AB and with the Y Zones at “junction arcs”. Gold values in stockworks show excellent continuity and uniformity, with very little nugget effect. Individual zones pinch, swell, and overlap en echelon. Width of gold mineralization ranges from 1-to-45 feet in thickness, but tends to average about 10 feet.

Metallurgy:

Historically, the mine operated at a rate of 200 tons per day. Ore was crushed through primary and secondary crushers, and ground in a ball mill. A standard flotation circuit was used to concentrate the ore prior to being shipped off site.

Historical gold recoveries averaged 90% and concentrate grades ranged from 3.5-to-5.0 ounces per ton gold.

Canarc performed preliminary metallurgical test work that utilized flotation, cyanidation of the flotation tailings, and pressure oxidation (autoclaving) of the flotation concentrate.

These tests achieved an average recovery grade of 94%. Additional metallurgical test work is planned to optimize the process.

Updated NI43-101 Resource Estimate:

Canarc’s exploration to date has resulted in New Polaris becoming one of the largest gold deposits in Western Canada.  On February 1, Canarc released an updated NI 43-101 Resource estimate and measured and indicated undiluted resources range from 570,000 to 457,000 oz of gold contained in 1,670,000 to 1,009,000 tonnes (1,840,861 to 1,112,233 tons) of mineralized vein material grading 10.6 to 14.1 grams per tonne (0.31 to 0.41 oz per ton) using a range of cut-off grades from 2 to 8 gpt (0.06 to 0.23 opt).  Greater than 95% of the measured and indicated resources are located within the C vein system where infill drilling programs were conducted over the past three years.

Inferred undiluted resources range from 697,000 to 571,000 oz of gold contained in 2,060,000 to 1,340,000 tonnes (2,270,763 to 1,477,098 tons) of mineralized vein material grading 10.5 to 13.3 grams per tonne (0.31 to 0.39 oz per ton) using a range of cut-off grades from 2 to 8 gpt (0.06 to 0.23 opt).  Approximately 75% of the inferred resources are also located within the C vein system, with the remainder attributable to the Y19 and Y20 veins.

Potential

Readers should refer to the following New Polaris inclined section map of the East-West Striking vein: http://canarc.net/_resources/maps/zoomify/2007-01-30maps.htm

Of special interest are drill intercepts taken below the C-vein target zone outlined in the updated 43-101. Numerous target results of exceptionally high grade gold continue to indicate that this deposit is open at depth. The significant size of this deposit is yet to be fully defined.

With an updated, NI 43-101 resource estimate for the New Polaris gold project now completed a conceptual mine plan and initial economic assessment should be completed in Q1, 2007.  Subject to positive results, Canarc plans a major feasibility program of environmental studies, dewatering the old mine workings, deepening the mine shaft, developing a new drift from the shaft bottom over to the C vein, trial mining of a bulk sample and further infill drilling.

The objectives of this work program will be to establish proven and probable reserves around the new drift, estimate future mining costs, complete metallurgical testing to finalize the process flow-sheet and expand the measured and indicated resources.

This would allow Canarc to pursue a feasibility study, government permitting and project financing in 2008 in anticipation of mine construction and production in 2009.

Benzdorp Property - Suriname

In an existing gold producing area [alluvial production historically exceeding 1,000,000oz. of gold],   Canarc’s recent exploration results confirms the potential for a major new gold discovery.  

The deposit potential is several million oz. of gold with copper as a by-product in large tonnage, low grade, porphyry-type deposits and moderate tonnage of higher grade vein type deposits.  

The company holds an option to acquire an effective 100% interest in the property subject to royalties, in four large exploration concessions totaling 138,000 hectares from the state-owned Grassalco mining company.

Mining History:

Gold production was first recorded from Benzdorp in the late 1800’s when English and Dutch companies exploited the alluvial deposits. The Jungle Queen dredge produced over 500,000 ounces of gold on its own over a 40 year period.

In recent times, hundreds of illegal small-scale miners produce and estimated 10,000 oz. of gold each year from river gravels.

Canarc acquired the Benzdorp property option in 1996 and has so far spent over US$5 million on exploration consisting of extensive soil sampling, trenching, geophysics, drilling, and deep bulldozer trenches.

Since June 2005 exploration has been focused on exploring the remainder of the greenstone belt. This work has successfully identified additional geochemical anomalies for trenching and follow-up drilling. As of March 2006, 50% of the greenstone package still remains to be soil sampled.

Deposit Potential

Evidence for shear-hosted gold deposits similar to Cambior’s Gros Rosebel deposit as well as saprolite gold deposits like Kinross’s Paracatu deposit are present on the property.

The company set this target for 2007:

Complete the exploration work needed at Benzdorp to attract an industry partner or financier so that the project can move forward without draining Canarc’s treasury.

Phase three of the drilling programme was implemented to complete in-fill drilling at 50-meter spacings to fully define a resource that is 43-101 compliant, so that a feasibility study can be completed.

The 2006 drilling results to date have been as follows:

A total of 96 anomalous samples exceeded 0.25 grams per tonne gold, including 10 samples that assayed more than 1.0 gpt gold.   Two large new gold prospect areas were outlined, referred to as VHA and VHB.

q       The VHA target is 650 m long by up to 600 m wide, and is possibly related to two separate quartz-sericite schist and quartz vein exposures, one of which assayed over 3 gpt gold in a grab sample.

q       The VHB target is 400 m long by 200 m wide, with peak values up to 1.7 gpt gold.

Canarc has also completed a 1800 km high-resolution airborne magnetic and radiometric survey over the entire greenstone belt portion of the property in order to provide a previously unprecedented degree of geological detail and assist in identifying the structures controlling gold mineralization.

To date, only 18% of the prospective greenstone belt that extends for over 20 km along the eastern side of the property has been explored by Canarc.  

Bellavista Gold Mine – Costa Rica

OVERVIEW
The flagship Bellavista Mine is Glencairn’s Gold’s largest Central American gold producer. It produced its first gold in the second quarter of 2005 and reached commercial production in December 2005. The mine is now ramping up to its design rate of 60,000 oz. gold per year at a cash operating cost of $267 per oz., based on a feasibility study and using current input costs, according to the majority owner and operator, Glencairn Gold Corp.

Mineable ore reserves stand at 555,000 oz. contained in 11.2 million to ore with a grade of 1.54 g/t of gold.   Significant additional gold resources have been delineated but are not yet N.I. 43-101 compliant.   Canarc holds up to 20% of net profits [after payback], in this project from the majority owner and Operator, according to the majority owner and operator Glencairn Gold Corporation

Glencairn Gold Corporation announced that in the third quarter 2006, the Bellavista Mine produced 8,102 ounces of gold at a cash operating cost of $363. Net earnings totaled $0.9 million from sales of $5.1 million in the third quarter of 2006. There were no comparable sales in the third quarter of 2005 because the mine commenced commercial production in December, 2005.

Both ounces of gold produced and sold were below budget at the Bellavista Mine in the latest quarter, primarily due to lower recoveries resulting from a delay in the completion of the grinding mill. The mill will be operational in the fourth quarter 2006 and gold recoveries are expected to improve significantly.

Glencairn Gold Corporation is the owner/operator of the mine.   Canarc holds a royalty interest amounting to 5.6% of net profits during the 1st payback period, rising to 10.4% during the 2nd payback period and 20.2% of net profits thereafter.   In 2005, an independent study placed a US$3.3 million net present value on Canarc’s royalty interest in the Bellavista gold mine using a US$425 gold price and 5% discount rate. An updated report is currently underway which will substantially increase Canarc’s position considering the stronger gold price

For more information on this project, please visit www.glencairngold.com

Endeavour Silver.

Canarc owns about 1% of Endeavour Silver Corp. with a quoted market value of $1.05 million as of the September 30^th, 2006 Q3 fillings. Endeavour Silver Corp is a producing Silver/Gold mine [plus mineral processing plant] in the state of Durango, Mexcio, which is undergoing excellent growth of production and expansion of resources.   Canarc took the opportunity to sell part of its shareholdings in Endeavour last year, but still holds about 1% of the outstanding Endeavour shares. 

Prospects

Canarc’s New Polaris asset is moving towards a full feasibility study, scheduled to be completed early in 2008. Although Canarc continues to function as an independent exploration company it is on track to diversify in from its history as an explorer into a developer and producer.   So it will not be a forced seller of its assets.   Translated, this means it will achieve an excellent deal if it should sell the assets of the company or just one [Bellavista Royalty, Benzdorp or New Polaris].

It does need a partner to bring Benzdorp to its full potential, but it can wait.   Once it has completed its feasibility studies and defined the resources, we believe it will have a major gold deposit on its hands.  

We believe it is only a matter of time  before the market comes to realize the huge perceived undervaluation in Canarc’s shares.  We expect its share price to begin moving from a purely speculative to an under-priced resource/mining company within the year.   As such we do believe it has a place in one’s portfolio not only as a speculative position, but also as a successful exploration and future producing company expected to be re-classified, if not taken over.

Liquidity position as at the 30^th September 2006

As of September 30, 2006, Canarc held cash and marketable securities totaling CA $1.76 million.

The Company is well financed to fund the current work program at New Polaris, Benzdorp and for the evaluation of acquisition opportunities out of working capital.

Contact Resources:

Canarc Resource Corp.
Suite 800 - 850 West Hastings St.
Vancouver B.C.
V6C 1E1

For more information contact:

Gregg Wilson, Investor Relations
Tel. 1-604-685-9700
Toll Free: 1-877-684-9700
Fax. 1-604-685-9744

Email: info@canarc.net
Website: www.canarc.net

Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Gold Forecaster - Global Watch / Julian D. W. Phillips / Peter Spina, have based this document on information obtained from sources it believes to be reliable but which it has not independently verified; Gold Forecaster - Global Watch / Julian D. W. Phillips / Peter Spina make no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Gold Forecaster - Global Watch / Julian D. W. Phillips / Peter Spina only and are subject to change without notice. Gold Forecaster - Global Watch / Julian D. W. Phillips / Peter Spina assume no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

Disclosure
The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Authors have taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond our control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The information presented in stock reports are not a specific buy or sell recommendation and is presented solely for informational purposes only. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise outside of the trading timeframe listed above. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.

-- Posted Wednesday, 14 February 2007 | Digg This Article