Canarc Resource Corp. (CCM)
Interview with:
Bradford Cooke, President and CEO
Business News, Financial News, Stocks, Money & Investment Ideas, CEO Interview
and Information on their
New Polaris gold deposit located in northwestern British Columbia and its option on the huge Benzdorp gold property in Suriname, South America.

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Canarc Resource Corp.’s diversification as a developmental, exploration and production Company is reducing the risk to stockholders and maximizes their upside

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Gold Exploration
(CCM – Toronto)

Canarc Resource Corp.

800-850 West Hastings St.
Vancouver, BC V6C1
Phone: 604-685-9700

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Bradford Cooke
President & CEO

Interview conducted by:
Lynn Fosse
Senior Editor
April 2004

Bradford J. Cooke, President, Director and C.E.O.

A professional geologist, Mr. Cooke has more than 28 years experience in geology and mineral exploration. He holds two university degrees in geology and has worked with the Ontario Department of Mines, Noranda, Shell and Chevron. Between 1983 and 1987 he owned and operated Cooke Geological Consultants, which found and developed several gold vein deposits for clients, and effectively reactivated interest in the Bralorne gold district -- historically, the largest gold producing region in British Columbia. In 1987, with the private management company ARC Resource Group, he founded Canarc and has overseen the growth of the company since that time, participating hands-on in the acquisition and exploration of strategic gold properties throughout the Americas.

Company Profile:
Canarc Resource Corp. (CCM -TSX & CRCUF.OB – OTC: BB) is a growth-oriented, gold exploration and mining company. The Company's principal assets are its 100% interest in the 1.3 million oz New Polaris gold deposit located in northwestern British Columbia and its option on the huge Benzdorp gold property in Suriname, South America. Major shareholders include Barrick Gold Corp., Kinross Gold Corp.

The Benzdorp property where several large prospects have been found and are now ready for drilling, may be the Company’s next major gold discovery. The target here is a large gold porphyry system with the potential for several million ounces. Canarc’s most advanced development project is the 550,000 oz. Bellavista gold deposit (18% carried interest after payback) in Costa Rica. Glen Cairn Gold Corp., the Operator, has identified an open pit, proven mineable reserve that is amenable to heap leach operations with low US$ 156 per oz. operating costs.

CEOCFOinterviews: Mr. Cooke, you have been with Canarc for quite some time; what was the vision when you started and where are you today with your plans?

Mr. Cooke: “I was a consulting geologist for many years, so my vision for Canarc was to create a publicly listed mining company that was focused on growth through the exploration and development part of the mining cycle. After fifteen years in the business, Canarc has had several significant gold discoveries under its belt and it looks like we are now looking at our largest discovery with recent work in South America.”

CEOCFOinterviews: Will you tell us where you are now and give us an overview of the various locations and what you are doing?

Mr. Cooke: “Canarc today, is actively exploring and developing gold projects in north, central and South America. The company is focused on two properties at this time. One of our most successful discoveries today is the New Polaris mine in northern British Columbia; it is in the development stage where we have invested over twelve million dollars and have discovered a 1.3 million ounce gold resource below and beyond what was historically a small high-grade underground goldmine. The resource is open in all directions for expansion but our focus at this time will be to move the project into the development part of the mining cycle, completing infill drilling work, environmental studies, a feasibility study and then raise the capital needed to build a small but very high-grade underground mine. The other project, which is driving our share price at this time, our newest and perhaps our biggest discovery is on a property called Benzdorp in South America.  Last year on this property, we drove a number of drill holes into a very large gold porphyry prospect and every hole within that discovery area, returned gold mineralization from top to bottom. We are enthusiastic about our opportunity to find a large deposit.”

CEOCFOinterviews: What happens next in Benzdorp?

Mr. Cooke: “The company is cashed up to proceed with the next phase of drilling, which is already underway as of last week. This second phase of drilling will focus on determining how large the discovery so we have planned approximately 20 holes that will be drilled to at least 300 meter depth, over an area of about 500 meters x 500 meters, between now and June. That will allow us to make an initial resource estimate and after June we hope to triple the number of drills active on the discovery so that by year-end we will have  a definitive resource, whether it is three million, five or seven million ounces, we don’t know, but that is certainly the size of the target.”

CEOCFOinterviews: What will that decision be based upon?

Mr. Cooke: “What is motivating us to focus on this discovery is that the twelve holes we already have in the core discovery area are wholly mineralized from top to bottom. We haven’t found any waste rock yet; that is a compelling reason to drill off this discovery area. The size of the target is permissible for a five million ounce gold discovery. We haven’t proven that yet, and we will have to do that with additional drilling. With a near 100% hit rate right now, there is simply no reason for us to hold back, we are going after this discovery as fast as we can.”

CEOCFOinterviews: How did you choose the two properties and when you look at other properties, what do you look for?

Mr. Cooke: “The largest discovery in our company to date was the New Polaris mine in British Columbia that I mentioned. We were surveying available projects back in 1990 to find something that stood out. The corporate criteria for acquisitions and the projects that we take on have to be either very high grade potential, which Polaris certainly is, or very high tonnage potential, which the Benzdorp discovery certainly appears to be, or compelling economics. As it turns out, at the current gold price, both of the projects have very compelling economics. That is our corporate objective.  We have had New Polaris since 1990, we have drilled over 180 holes in the Polaris site, while we only have twelve holes into the new Benzdorp discovery, we should have an additional twenty by June and upwards of 100 by year-end.”

CEOCFOinterviews: Is your funding adequate for your various projects?

Mr. Cooke: “In this bull market for gold, funding is readily available so we are set for this year. If the results of our drilling at Benzdorp are compelling enough, we expect that it will impact the share price and might make an opportunity for us go to back and tap the equity markets one more time to finish the job we started on Polaris and Benzdorp, so if we go back to the markets, it would be at a higher share price and it would be something in the order of five to ten million dollars; that is really all we need now to finish what we started at Polaris.”

CEOCFOinterviews: Are you generating any income now?

Mr. Cooke: “Yes, the company is fortunate to have a modest amount of annual income from two separate projects. We own an 18% carried interest in the Bellavista goldmine currently being built in Costa Rica, and Wheaton River Minerals, the operating partner there pays us a cash payment every year of approximately $120,000.00 dollars, so that helps to pay some bills. We also have an interest in a small operating goldmine in South America.”

CEOCFOinterviews: You seem to be spread out geographically, is that by design?

Mr. Cooke: “By design we were far more wide spread in the 1990’s and really pulled in our horns to focus on a north and south axis. When you are in three or four time zones, it is a lot easier to manage than when you are in Asia or Africa. I found that very challenging. Our focus is North, Central and South America.”

CEOCFOinterviews: Are there new technologies, or new equipment that you want to use or that you do use, which help you in your development?

Mr. Cooke: “We, like many other entrepreneurial companies, use cutting-edge exploration technology in our search for new gold deposits. We don’t have anything proprietary that sets us apart from the crowd, but given that we are all highly trained technically, I think that we have an advantage over the average company, and it was our skill sets that allowed us to make the discovery at Polaris and now Benzdorp in South America.”

CEOCFOinterviews: What do you see as your challenges going forward, and how are you ready?

Mr. Cooke: “Aside from the day-to-day challenges of managing risk, and the gold mining business is a high risk, high reward business; managing risk is one of the keys to corporate success and I think we have done very well. We tend to avoid countries that have a high-risk profile. The Republic of Suriname is probably the highest risk profile in our portfolio and it is a functioning democratic republic; it used to be the Dutch Guiana, so there are many ties to Europe. We are active in Mexico, Canada, and Costa Rica and these are not politically risky areas. We tend to manage risk by avoiding high-risk areas where possible.”

CEOCFOinterviews: What are you looking at now?

Mr. Cooke: “I think Canarc has all it needs in its property portfolio now, for a major gain in its shares, it is through the discovery and drilling out of a gold mine in South America and through the work and the construction of a small high grade mine in New Polaris. These two projects alone should drive our shares significantly forward.”

CEOCFOinterviews: You mentioned that the price of gold is up; what do you do that if in six months to a year down the road it is no longer where it is today?

Mr. Cooke: “We obviously keep our eye on the commodity price and on expert opinion as to its direction. In addition, having some sixteen years or so in the business, I then am able to formulate my own opinions. Our view of the current gold market is that we are just completing the first leg of a multi-year gold bull market and that means that this year is actually going to be quite choppy for the price of gold. We don’t have any expectation that it is going to drive significantly higher; it may test a high of 450 this year and a low of 380. Ultimately, I think it will finish the year where it started, around 420. Having said that, my long-term views are significantly more bullish; I think that you are going to see a new base price for gold around the four hundred dollar range with spikes upward going forward, three to five years we may see the price of gold in the five, six, seven hundred dollar range. That is our outlook for gold price, and at the four hundred dollar level, if we are right in it being a new base price, that’s high enough for our projects to make a lot of money.”

CEOCFOinterviews: Many companies are developing gold projects; why should people be interested in Canarc?

Mr. Cooke: “I think Canarc stands out from the crowd in a unique way; Canarc is an exploration company, a development company and a producing company.  We are not just a gold explorer with a hope and a prayer because the odds are always against you when you are a pure exploration company.  Having said that, we have huge blue sky, and huge exploration upside, particularly with Benzdorp. And, as a development company, and we are not just developing one mine; we have a portfolio of projects, everything from a carried interest in a mine under construction in Costa Rica, to a 100% in a 1.3 million ounce deposit and practically 100% interest in a brand new mine in South America. As well we have production revenue. If you surveyed the landscape of small cap gold companies, you won’t find many companies with that portfolio approach. Our diversification reduces the risk to our stockholders and maximizes their upside.”

CEOCFOinterviews: Does that make it harder for people to categorize you?

Mr. Cooke: “We are purely a gold company and we are purely in North, South and Central America; that’s a fairly specific category.”

CEOCFOinterviews: What should people know about Cancarc that they may not realize when they look on the surface?

Mr. Cooke: “I think that just learning what the upside is on our projects is a challenge because when people look at a company like Canarc, what they see is a technically talented management group and a couple of stand-out projects, none of which are in production at this time. Polaris is a developmental stage project and Benzdorp is a discovery. The most common question we are asked is “when are you going to build your first big mine?” In the exploration and development part of the business, that is where most of the gains are made in the stock. Once you are in operations, you are an option on the price of gold. We would very much like to increase production, but given our successes have been so far in the exploration and development side of the business, and that is where most of the stock gains are, we will continue for at least the next year-and-a-half to focus on exploration and development at Benzdorp and Polaris. We can see multiples in the current share price just for finishing the job we started on those two projects.”

CEOCFOinterviews: So you think this is the time for people to be interested!

Mr. Cooke: “I think so and in a “nutshell,” the purest way to create wealth for stockholders is to go and find a gold deposit which is what we’ve done.”

CEOCFOinterviews: In closing, as CEO what is your focus and what skill-sets do you posses that you feel gives you an edge?

Mr. Cooke: “There is the ability to help select good projects. I look at a many projects and reject most of them. The other thing I focus on is the financing side, and the maximization of shareholder return. For me that means not only picking the right projects and doing the right work to unfold the potential of those projects, but also relating those successes and the future direction of the company to our shareholders and the investing public.”


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