Interview with Catalin Chiloflischi, CEO of Canarc Resource Corp. (TSX: CCM, OTC-BB: CRCUF, Frankfurt: CAN): 1 Million Ounces of Gold 14 Grams per Tonne Property in British Colombia, Canada, $10M+ Cash in the Bank and Growing
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By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC, USA
on 9/26/2016
Catalin Chiloflischi, CEO of Canarc Resource Corp., (TSX: CCM, OTC-BB: CRCUF, Frankfurt: CAN) tells us about his
New Polaris, high-grade gold property, in British Colombia, Canada. With about one million ounces of gold 14 grams
per tonne. Closing a profitable sale and with over $10 million in the bank and no debt, Canarc is in a great
position. Canarc recently acquired an option on a second property with another 1-million-ounce resource. They have a
focus on doubling their current resource and have a new goal of becoming a producer. There will be lots of news
about Canarc this year and next.
Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-chief of Metals News, interviewing Catalin Chiloflischi
CEO of Canarc Resource Corp. Could you tell me a bit about your company, and what differentiates it from other gold
exploration companies?
Mr. Catalin Chiloflischi: Yes, absolutely. Canarc is a very unique company which has been around for
while but has recently undergone a major transformation, so we now call it: “The New Canarc Gold and Silver”. Canarc
was founded by Bradford Cooke some 25 years ago, Brad is also the founder and CEO of Endeavour Silver, a well-known
name in the industry with an excellent track record. Right now Carnac is sitting on over $10 million in cash, and
looking to grow the asset base on the gold and silver space. We already have a very high-grade project in BC, of
which we own 100%. It has about a million ounces of gold. We've announced, recently, an option on another deposit
that also has close to a million ounces. We are also actively looking to acquire a more advanced project in order to
leverage our in house mine operating experience, together with options on other projects in order to increase our
gold and silver resource base.
Dr. Allen Alper: Could you tell me a bit more about your projects?
Mr. Catalin Chiloflischi: Sure. Our core project is called New Polaris, in Northern BC. It's a very
high-grade project. It has an average grade of about 14 grams of gold per ton. A lot of money has been historically
invested in the project. More than 30 million dollars went into the project historically. It provides very robust
fundamentals on the project, and those numbers are available on our website, but the capital cost is about 100
million dollars, and the cash cost is 450 US. A very low-cost project that we are aiming to bring forward with the
support of a joint venture partner.
The second project, on which we've just acquired an option recently, has about a million ounces. It's a different
kind of project. It's a bulk tonnage, lower-grade, open-pit gold project, but it's already next to infrastructure.
You can drive to it. The project also has seen about 15 million dollars in previous exploration work.
Dr. Allen Alper: Could you tell me more about where it's located?
Mr. Catalin Chiloflischi: That project is located in British Columbia, and you can actually drive to
it. It has very good infrastructure, and we are planning to spend additional funds on it in order to increase the
resource and define the economics of the project.
Dr. Allen Alper: Sounds very good! Could you tell us about some of your key accomplishments in 2016 and more
about your plans for 2016 going into 2017?
Mr. Catalin Chiloflischi: Canarc has undergone a major transformation in 2016. For the first time in
25 years, Canarc is sitting on a very healthy10+ million dollars. There's no debt, and that's solid, because we've
been able to complete a very critical transaction for our shareholders this year, the sale of a project which we
acquired about 9 months ago for about a million dollars, invested about a million in it and have sold it for more
than 10 million dollars. That transaction was really transformative for Canarc. It provides a very healthy cash
situation right now, and provides a solid base for growth into 2017. We are really proactively looking for advanced
gold projects and putting the money to work for the shareholders.
Dr. Allen Alper: That sounds very good. Could you tell me a little bit more about yourself, your team, your
board?
Mr. Catalin Chiloflischi: Canarc was founded by Brad Cooke, who has about 40 years of mining
experience. He's a geologist, and a very well-respected mining individual in the mining space. He built Endeavour
Silver from zero to over a billion-dollar company with 3 producing mines and 2 more in the works right now. It all
started from nothing about 12 years ago. He's a very well-accomplished individual and he's the Founder of Canarc,
Chairman, and a major shareholder.
I'm the CEO of the company. I have a business degree. I've been involved in mining for close to 20 years
now. My focus is business and business management. I've raised about 250 million dollars, in the last 4 or 5 years,
for various companies I've worked with, including Canarc recently. I'm a company-builder and I have access to a team
of excellent professionals. On the operations side, our President is a mining engineer. He has around 40 years of
experience. He was mainly general manager for a lot of underground mines, including Eskay Creek mine in Canada for
about 7 years. Eskay Creek is a legendary mine that used to be in production a few years ago and had the highest
grade gold we've ever seen in North America. We also have access to a team of very good and qualified consultants.
As we grow, we plan to expand our management team further.
Dr. Allen Alper: Sounds excellent! Could you tell me a bit about your shares and capital structure?
Mr. Catalin Chiloflischi: Canarc has been around for 25 years and as a result of that, we have about
215 million shares out, which may seem a bit high, but the company has never done a roll-back and the only way to
get things done, historically, was through share issuance. That's the reason why we're seeing about 215 million
shares. We have a market capitalization of about 20 to 25 million dollars. Half is in cash, so it's a fantastic
entry point for investors. Investors should pay attention. Canarc is undergoing, right now, a complete change
starting from its cash position. It’s also funded by a new strategy to grow organically by acquiring other projects.
Canarc’s focused on more advanced, possibly producing, assets that would potentially transform the company into a
producer over the near term. That's really our goal here.
Dr. Allen Alper: That sounds excellent! What are the primary reasons our high-net-worth readers/investors
should consider investing in your company?
Mr. Catalin Chiloflischi: Primarily, the current uptrend in the metals space has seen most of the
mining stocks move up significantly. We've seen moves in the business share prices anywhere from two-fold to ten-
fold. Canarc is probably the only company that's not really moved much. We are just about to do that. An underlying
reason is that we just recently completed the sale of a project we sold for about 10 million dollars. The company
right now is as strong as it's ever been.
We've just announced a deal that has the potential to double our resource in very attractive terms. We are
committed to do more, we are actively looking. Investors should pay attention, Canarc should be a holding, in my
opinion. Because it's a completely new company, at this stage, with a significant growth profile. It has cash in the
bank, which is very important for a mining company. We don't need to raise money for some time. We're looking to put
the money to work, which is important for shareholders because we will be driving additional value and growth, and
that should be reflected in the share price.
Dr. Allen Alper: That sounds very good!
Mr. Catalin Chiloflischi: The New Canarc Gold and Silver should probably be on the radars of people
right now. We've been undergoing a major transformation. From this time on, expect to hear from Canarc as we deliver
on our strategy going forward.
Dr. Allen Alper: That sounds excellent!
http://www.canarc.net/
Suite 301-700
West Pender Street
Vancouver, B.C., Canada, V6C 1G8
Email: Catalin@canarc.net
Tel: (604) 685-9700
Fax: (604) 685-9744
Toll Free: 1-877-684-9700
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