Canarc Resources has an advanced project in Alaska that looks promising. Their New Polaris project is a 1.1 million oz resource, averaging 11 gpt. They have a PEA for 72,000 oz of production for 10 years with low cash costs around $500. The IRR is 38% pre-tax at $1200 gold, so it will likely get built. They have a FD market cap of $11 million, so it has big upside potential. If they can raise money for the feasibility study (about $9 million), this stock could become very attractive. Raising that money will require substantial share dilution. They have $2 million in cash, so they need another $7.
They also have two other large 100% owned projects. The first is called Tay-LP in the Yukon on 20,000 acres. Early drill results have been good and they have many, many targets to drill. The second is the Windfall Hills project in British Columbia on 10,000 acres, and it is drill ready. Lastly, their Devil Thumb project has three early exploration properties. All together, the upside looks promising from this cheap valuation.
There are so many cheap stocks out there that it has become very difficult to know which to pick. This is another example. This risk/reward looks pretty good, but not great. However, if they get New Polaris into production, increase its resources and then find a second mine, the upside could be enormous. Of course that is simply what-if speculation. But it's nice to see that they have it.
Trying to develop a 1 million oz high grade gold project in Alaska.
Need cash for the feasibility study.
Gold Price (last analysis) ($)
Silver Price (last analysis) ($)
Stock Price (last analysis) ($)
1 Yr Stock Price High ($)
Stock Price Change From 1 Yr High (%)
Stock Price USA 5-Year High ($) (including date)
.57 Cents - 4/11/2007
Stock Price USA 5-Year Low ($) (including date)
.02 Cents - 12/19/2008
They have good projects, but they have not been able to turn them into share holder value.
Canada (British Columbia, Yukon)
Local Issues (wag)
New Polaris has some infrastructure issues, but may not be a problem.
Country of Incorporation
4 Projects in Canada.
The New Polaris project is a 1.1 million oz resource (11 gpt) that is ready for development.
They have a PEA for 72,000 oz of production for 10 years at low cash costs.
It has a $100 million capex, but excellent economics at $1200 gold. They are trying to raise money to do a feasibility study. This will dilute shares.
They also have an excellent 20,000 acre property (Tay-LP) in the Yukon with very good early drill results. And they have a 10,000 acre property (Windfall Hills) in British Columbia that is drill ready. Plus, they have 3 other early exploration properties in their Devils Thumb project.
Shareholder Friendly (wag)
Could get highly diluted for a Project Generator (because of their low share price). Currently at 138 fully diluted shares.
Ore Grade (wag)
New Polaris is high grade with an average of 11 gpt
5/15/2014: Increased rating from 2 to 3 after they committed to developing the Polaris project and the stock crashed to $11 million market cap.
6/1/2013: Reduced rating from 2.5 to 2 because they have not made a JV deal yet for Polaris.
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