Shares in Canarc Resource Corp (CVE:CCM, OTCMKTS: CRCUF) added over 5% in New York on Tuesday as it said it hit 'significant' gold mineralisation in the first three holes of a seven hole program at its Fondaway Canyon project in Nevada.
Drill highlights included 65.4 meters (m) at a grade of 2.83 grams per tonne (gpt) gold, including 10.20 gpt gold over 1.4m, 7.69 gpt over 9.8m and 7.70 gpt of the yellow metal over 3.7 m on one hole.
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The 2,534 m drill program tested five widely-spaced target areas along 2.3 km of the 3.8 km-long gold system, the firm noted.
"The results of the first three drill holes are very encouraging in terms of the mineralization widths and grade and have significantly extended the depth of the known mineralization," said Catalin Kilofliski, the chief executive of Canarc.
"It is becoming clear that Fondaway Canyon offers the potential to develop bulk tonnage gold mineralization suitable for open pit mining," he added.
Kilofliski noted that the firm had tested five separate targets with seven drill holes in this first phase program.
"Drill holes FC17-2 and 3 both successfully extended the Colorado zone mineralization below the previously drilled mineralization. These drill holes also show that the Colorado zone could connect with the adjacent Stibnite zone to the east with more drilling."
Kilofliski added that the drill program was completed last week and that the remaining core samples have been cut and shipped.
The firm expects to release assays for holes 4-7 in early January 2018.
"At that time, we will begin the evaluation of an open pit mining potential at Fondaway and will prioritize the target zones for a possible Phase 2 drill program next year," he said.
Canarc shares in the US added 5.56% to stand at US$0.058. In Toronto, they were unchanged at C$0.075.