Vancouver, B.C. – August 31, 2022 - Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA) (the “Company” or “Canagold” - https://www.commodity-tv.com/ondemand/companies/profil/canarc-resource-corp/), is pleased to announce the issue of its request for tender to seven qualified consulting engineering firms to complete a feasibility study for the New Polaris project in Northwestern BC.
A Preliminary Economic Assessment (PEA) conducted by Moose Mountain Technical Services in February 2019 demonstrated the robust economic viability of the project. Using a gold price of US$1,500 per oz, the PEA indicated cash costs of US$400 per oz, an after-tax Net Present Value (NPV with 5% discount) of C$469 million with an after-tax Internal Rate of Return (IRR) of 56% and a 1.9-year payback period. On a pre-tax basis, the undiscounted life-of-mine cash flow totals CA$847 million (C$/US$ exchange rate of 0.71).
The current resource (from the 2019 PEA, 4g/t Au cut-off) includes an Indicated resource of 586,000 oz Au (1.7Mt @ 10.8 g/t) and an Inferred resource of 485,000 oz Au (1.5Mt @ 10.2 g/t).
“The time has come to take New Polaris across the finish line,” said Catalin Kilofliski, CEO of Canagold. “With our refocused ownership, the Board of Directors is committed to expediting this project to a feasibility study to reward our Company’s shareholders. We look forward to working with the selected globally renowned engineering consulting firm to take New Polaris to the next level.”
During 2021 and 2022, more than 30,000 meters of drilling in 54 holes was completed to increase mineral resource estimates and to upgrade the inferred resource to an indicated resource. An update to mineral resource estimates will be made using this recent drilling information for the feasibility study.
Chief Technical Officer Mike Doyle noted that the company’s goal is to advance the project by moving to a feasibility study as soon as possible. “The 2021-22 drilling results showed numerous high-grade gold intercepts in infill drilling, extended the resource at depth and also defined resources in the parallel C9 and C10 zones,” he said. “We’re now exploring the near-surface Y veins with an initial 8,000 metre program. All of this new data will ultimately feed into the feasibility study and the additional resources, together with a higher gold price compared to the PEA, should result in even stronger economics.”
Completion of the feasibility study is expected to take approximately 18 months.
New Polaris Overview
Canagold’s flagship asset is the 100% owned New Polaris Gold Mine project located in northwestern British Columbia about 100 kilometres south of Atlin, BC and 60 kilometres northeast of Juneau, Alaska. The property consists of 61 contiguous Crown-granted mineral claims and one modified grid claim covering 850 hectares. New Polaris lies within the Taku River Tlingit First Nation traditional territory. Canagold is committed to providing employment and business opportunities capable of helping to support the local economies in the vicinity of its exploration projects.
Qualified Person
Garry Biles, P.Eng, President & COO, Canagold Resources Ltd, is the Qualified Person who reviewed and approved the contents of this news release.
About Canagold
Canagold Resources Ltd. is a growth-oriented gold exploration company focused on advancing the New Polaris Project through feasibility and permitting. Canagold is also seeking to grow its assets base through future acquisitions of additional advanced projects. The Company has access to a team of technical experts that can help unlock significant value for all Canagold shareholders.
“Catalin Kilofliski”
Catalin Kilofliski
Chief Executive Officer
For further information please contact:
Knox Henderson, VP Corporate Development
Tel: (604) 604-416-0337; Cell: (604) 551-2360
Toll Free: 1-877-684-9700
Email: [email protected]
Website: www.canagoldresources.com
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
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