Canagold Announces Positive Feasibility Study Results for the New Polaris Project After-Tax NPV (5%) of $425 Million with an After-Tax IRR of 30.9% at US$2,500 / oz Gold After-Tax NPV (5%) of $793 Million with an After-Tax IRR of 47.3% at Spot Gold (US$3,300 / oz)
Canagold Announces Positive Feasibility Study
Results for the New Polaris Project
After-Tax NPV (5%) of $425 Million with an After-Tax IRR of 30.9% at US$2,500 / oz Gold
After-Tax NPV (5%) of $793 Million with an After-Tax IRR of 47.3% at Spot Gold (US$3,300 / oz)
Vancouver, B.C. - July 21, 2025 - Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA)
(“Canagold” or the “Company”) is pleased to announce positive results of the Feasibility Study (“FS”) for its 100%
owned New Polaris gold-antimony project located in northwest British Columbia, Canada. All dollar figures are in
Canadian dollars unless otherwise indicated. The Company expects to file a technical report relating to the FS,
prepared in accordance with National Instrument 43-101 (“NI 43-101”), within 45 days.
Feasibility Study Highlights
Robust Project Economics
• After-tax net present value (“NPV”) of $425 million generating an after-tax internal rate of return
(“IRR”) of 30.9%, with a project payback of pre-production capital expenditures (“CAPEX”) of 2.4
years, assuming a discount rate of 5.0% and a US$2,500 base case Gold Price per ounce (“Gold
Price”)
• After-tax NPV of $793 million generating an after-tax IRR of 47.3 %, with a project payback of pre-
production CAPEX of 1.7 years, assuming a discount rate of 5.0% and a US$3,300 spot Gold Price
• Life of mine (“LOM”) after-tax free cash flow of $649 million at a US$2,500 base case Gold Price
• LOM after-tax free cash flow of $1.1 billion at a US$3,300 Spot Gold Price
High Grade, Low CAPEX and Low AISC
• Estimated pre-production capital expenditures CAPEX of $250 million
• LOM all-in sustaining cost (“AISC”) per payable gold US$1,247/oz.
• High-grade underground mine averaging a LOM diluted grade of 9.94 g/t gold containing 904,000
ounces of Gold
• LOM mill recovered gold production of 805,589 ounces
Feasibility Study Financial Highlights and Gold Price Sensitivity
Table 1: After-Tax NPV (5%), IRR and Cash Flow Sensitivities to Gold Prices
Low Case Base Case High Case Spot Case
Gold Price (US$/oz) $2,200 $2,500 $2,800 $3,300
After-Tax NPV (5%) (C$M) $287 $425 $564 $793
After-Tax IRR (%) 23.5 30.9 37.5 47.3
After-Tax Payback (years) 2.9 2.4 2.1 1.7
After-Tax NPV/Initial Capex 1.1 1.7 2.3 3.2
After-Tax Free Cash Flow ($M) $465 $649 $835 $1,145
“The Feasibility Study results demonstrate exceptional economics, low Capex and low AISC for the New
Polaris Gold-Antimony Project,” stated Canagold’s Chief Executive Officer, Catalin Kilofliski. “Even at a
$2,500 Gold Price, the projected cash flow and economics are outstanding. While we continue to refine and
optimize the Project aimed at unlocking additional revenue from antimony metal and reduction of power
costs and emissions through potential run-of-river green power generation, our primary focus is now shifting
toward completing the permitting process, in order to advance New Polaris toward a construction and
production decision. I would like to express our sincere appreciation to the Taku River Tlingit First Nation for
fostering a respectful and inclusive open dialogue every step of the way. I also want to thank all our
shareholders for their patience and confidence.”
TRTFN’s Spokesperson, Charmaine Thom, says “Canagold’s land acknowledgement of Taku River Tlingit
First Nation’s traditional territory and the willingness to work toward a partnership through a Consent Based
Agreement, is a true testament of what reconciliation looks like.”
Critical Metals/Antimony
• A total of 5,630 tonnes of Sb grading 0.6% is included in the Company’s Indicated MRE dated April
2, 2025
• A total of 5,173 tonnes Sb is included in the FS mine plans
However, the Feasibility Study does not include any revenue contribution from antimony or estimate an
antimony reserve. This is because the process flowsheet outlined in the Feasibility Study is specifically
designed to produce a sulphide concentrate.
Antimony has been recognized at New Polaris since the early mining operations of the 1940s and 1950s.
However, its economic significance has grown substantially in recent years due to global supply shortages
and sharply rising prices.
The Company is currently undertaking additional metallurgical testing and economic evaluations required to
support the inclusion of antimony in the project’s financial model.
The prospect of including revenue from antimony in future phases, has the potential to improve overall
project economics, particularly as the associated mining costs for antimony are largely covered by the gold
mining activities. However, there are no guarantees that the future testing will support this prospect.
Plans for Unlocking Antimony Value
To capitalize on the full economic potential of antimony, the Company is advancing several key initiatives:
• Metallurgical Test Work: Ongoing advanced testing to produce a high-grade antimony-gold
concentrate
• Refining and Processing Studies: Technical assessments evaluating the feasibility of refining
antimony into high-purity metal prior to off-site gold refining
• Economic Optimization: Evaluating the potential uplift in project economics from the future
inclusion of antimony revenue
• Exploration Upside: Assessing opportunities for expanding antimony mineralization within the
broader New Polaris property
New Polaris Feasibility Study
The Feasibility Study for New Polaris was completed by Ausenco Engineering Canada ULC (“Ausenco”),
supported by Moose Mountain Technical Services and JDS Energy & Mining Inc. The study confirms robust
economics for an underground mining and milling operation, with a low initial capital cost and a high rate of
return.
Key Feasibility Study parameters are shown in Table 2.
Table 2: New Polaris FS Project Parameters
Base Case Economic Assumptions
Gold Price (US$/oz) $2,500
Exchange Rate (C$/US$) 0.725
Discount Rate 5%
Contained Metals Mined
Contained Gold (koz) 904
Contained Antimony (tonnes) 5173
Mining
Mine Life (years) 8.3
Waste (Mt) 1.8
Total Material Mined (Mt) 4.6
Total Mineralized Material Mined (Mt) 2.8
Processing
Processing Throughput (ktpa) 340
Average Diluted Gold Grade (g/t) 9.9
Gold Production
Gold Recovery (%) 89.1
LOM Recovered Gold in Concentrate (xoz) 806
LOM Payable Gold Production (koz) 709
LOM Avg. Annual Gold Production (koz) 85.7
Operating Costs Per Tonne
Mining Cost ($/t Milled) $135
Processing Cost ($/t Milled) $64
G&A Cost (C$/t Milled) $68
Total Operating Costs ($/t Milled) $267
Other Costs
Concentrate Transportation to Smelter ($/wmt) $1,089
Cash Costs and All-in Sustaining Costs
LOM Cash Cost (US$/oz Au) $997
LOM All-in Sustaining Cost (US$/oz Au) $1,247
Capital Expenditures
Pre-production Capital Expenditures ($M) $250
Sustaining Capital Expenditures ($M) $225
Closure Expenditures ($M) $21
Economics
After-Tax NPV (5%) ($M) $425
After-Tax IRR % 30.9
After-Tax Payback Period (years) 2.4
After-Tax NPV / Initial Capex 1.7
Pre-Tax NPV (5%) ($M) $667
Pre-Tax IRR % 38.4
Pre-Tax Payback Period (years) 2.3
Pre-Tax NPV / Initial Capex 2.7
LOM After-tax Free Cash Flow ($M) 649
• Cash costs are inclusive of mining costs, processing costs, site G&A, off-site charges and royalties
• AISC includes total cash cost, sustaining CAPEX and closure cost
• All dollar ($) figures are presented in CAD unless otherwise stated. Base case metal price used in this
economic analysis is US$2,500 /oz Au.
Gold Production Profile
Graph 1: New Polaris LOM Production Profile
Mineral Resource Estimate
The Company’s current Mineral Resource Estimate (“MRE”), completed by Moose Mountain Technical
Services, has an effective date of April 2, 2025 with the mineralization model as the basis for the FS.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability at this time.
The New Polaris Mineral Resources for gold and antimony are shown in Table 3 and Table 4.
Table 3. New Polaris April 2, 2025 Gold Resource Estimate at 4 g/t cut-off
Resource Class Tonnes (000’s) Au (g/t) Au Metal Ozs
(000’s)
Indicated 2,965 11.6 1,107
Inferred 926 8.5 266
Table 4. Antimony Resource Estimate within the Base Case Au Resource
Resource Class Tonnes (000’s) Sb (%) Sb Metal
(Tonnes)
Indicated 860 0.65 5,630
Inferred 100 1.2 1,195
Notes on the Resource Tables:
1. The Mineral Resource Estimate was completed by Sue Bird, P.Eng. who is a Qualified Person as defined
under NI 43-101.
2. Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best
Practices Guidelines.
3. The base case Mineral Resource has been confined by “reasonable prospects of eventual economic
extraction” shape using the following assumptions:
• Metal prices of US$1,750/oz Au and Forex of 0.75 $US: $CDN
• Payable metal of 99% Au
• Offsite costs (refining, transport and insurance) of US$7/oz
• Mining cost of CDN$82.78/t
• Processing costs of CDN$105.00/t and G&A and site costs of CDN$66.00/t
• Metallurgical Au recovery of 90.5%
4. The resulting Net Smelter Return per tonne of ore equation is: NSR (CDN$/t) = Au (g/t) x 90.5% x C$74.72 /g
Au.
5. The specific gravity is 2.81 for the entire deposit.
6. The Antimony Resource is reported as a subset of the total Mineral resource at the 4 g/t Au cutoff.
7. The Sb is a by-product of the Au processing and therefore is reported using the same Classification as the Au
resource at the 4 gpt Au cutoff.
8. Numbers may not add due to rounding.
About the Mineral Resource Estimate
• A comprehensive statistical review of all available QA/QC assay data from the drilling was undertaken as part
of the MRE
• Historic drill results have been validated with recent drilling
• Gold values were capped for each individual domain of the geological model based on statistical probability
plots
• The MRE is based on a 5 m block model using a Percentage Model (meaning that the percentage of the block
within the domain is used for the MRE)
• A constant specific gravity of 2.81 g/cc is used for all blocks in the model, based on an average of measured
sample SG’s
• Indicated classification of a block required either 1) average distance to two drill holes of 35 m, maximum
distance 50 m and minimum number of two quadrants, or 2) average distance to two drill holes of 50 m,
maximum distance 70 m and minimum number of two quadrants, or 3) distance to closest drill hole of 10 m,
maximum distance of 50 m used and minimum number of three drill holes used
• The classification was checked for cohesiveness, with a cohesive shape of Indicated and Inferred material
produced
• The base case cutoff grade of 4 gpt Au is based on a US$1,750/ounce price of gold and preliminary recovery,
processing and mining costs which are based on preliminary production rate values as summarized in the
Notes to the resource table
• The MRE table presents undiluted values of gold grade and contained gold ounces
• The following factors, among others, could affect the MRE: assumptions used in generating confining shapes,
stope design; mining methods; metal recoveries, mining and process cost assumptions and commodity price
and exchange rate assumptions. The QP is not aware of any environmental, permitting, legal, title, taxation,
socioeconomic, marketing, political, or other relevant factors that could materially affect the MRE
Mineral Reserve Estimate
The mineral reserves are summarized in Table 5.
Table 5: Mineral Reserves
Reserve Class Tonnes (000’s) Au (g/t) Au Metal
Ounces (‘000s)
Probable 2,830.2 9.94 904.4
Total 2,830.2 9.94 904.4
Notes on the Reserve Table:
1. This Mineral Reserve Estimate has an effective date of July 10, 2025 and is based on the updated Mineral
Resource estimate issued on February 21, 2025 by Moose Mountain Technical Services.
2. The Mineral Reserve estimate was completed under the supervision of Dino Pilotto, P.Eng. of JDS Energy
and Mining Inc., who is a Qualified Person as defined under NI 43-101.
3. A cut-off grade of 6.0 g/t Au was used to define reserves for production and a 4.2 g/t Au marginal cut-off
value for development ore, based on a gold metal price of U$2,245/oz., exchange rate of CAD$1.39 =
US$1.00.
4. Processing costs of C$88/t ore, C$105/t mining costs, G&A costs of C$67/t ore, gold processing recovery
of 89.75%, and payable gold of 90%.
Mining Overview
The New Polaris mine is designed as a modern, fully-mechanized underground operation, targeting the safe
and cost-effective extraction of mineral reserves over an estimated 8.3 year mine life. The plan anticipates
delivering approximately 2.8 million tonnes (Mt) of mill feed at an average grade of 9.9 g/t gold.
A total of 1.8 Mt of waste rock will be generated during LOM underground development. Of this, the majority
will be used as backfill material within the mine to support mined-out areas, with the remaining volume
placed on surface in the integrated tailings and waste rock storage facility.
The mineral reserves are located beneath the historic workings of the Polaris-Taku mine, which operated
from 1938 to 1951 and produced 740,000 tonnes at an average grade of 10.3 g/t gold. The new
underground access will be established via a ramp extending from the existing New Polaris portal, reaching
an ultimate depth of approximately 780 meters. The primary ore body, known as the ‘C’ zone, accounts for
nearly 90% of total reserves, extends up to 500 meters along strike, and dips at an average angle of 50 to
60 degrees.
Geotechnical assessments indicate favorable rock conditions, with typical ground control measures and
associated costs anticipated.
To optimize recovery and minimize costs, two main mining methods will be employed:
• Mechanized cut-and-fill mining will be used in areas where high selectivity, minimal dilution, and
strong recovery rates yield the greatest value
• Sublevel long-hole mining will be applied in zones where its inherently low unit cost delivers optimal
economic benefit
Mine development and early construction activities will be carried out by an experienced underground
mining contractor, with operations transitioning to an owner-operated model upon commencement of
production. The underground mine is expected to employ approximately 190 personnel, sustaining an
average production rate of 950 tpd throughout the mine’s operating life.
Processing Overview
Processing will occur in a 1000 tpd crushing, grinding and flotation plant to produce a bulk sulphide flotation
concentrate which will be shipped off site for final processing at an independent processing facility.
Crushed ore is ground to 80% minus 74um and fed into a flotation circuit consisting of one stage of rougher
flotation with two cleaning stages to produce concentrate grading > 100 g/t Au.
Flotation concentrate is thickened, filtered and dried, to a moisture of approximately 5% and flown to
Juneau, Alaska, which is located approximately 60 km from site, then barged to Seattle for loading onto
ocean going ships for transportation to third-party smelters worldwide.
A portion of the process tailings will be fed to a backfill plant and used for filling underground mining voids,
the balance will be filtered and trucked to a dry-stack storage facility located about 1 km from the plant site.
Waste rock not used for underground backfilling will also be trucked to this facility for storage with the
tailings.
Concentrate Marketing Study
An independent concentrate marketing study for the New Polaris Project, evaluating marketability
and treatment terms for its gold concentrate has been completed as part of the FS. The study
confirms that the New Polaris gold concentrate, targeted at a grade exceeding 100 g/t Au, and an
average 12% As, is marketable under current global conditions.
The report identifies potential outlets for the sale of New Polaris gold concentrate, including:
• Traditional gold roasters in Asia, which represent an established and high-capacity
processing route
• Blending facilities, where the concentrate can be mixed with other materials prior to shipment
to smelters
• Asian gold roasters, copper smelters, or lead smelters
• Direct sales to international metal trading firms, which offer flexible and liquid off-take
arrangements
• Pressure oxidation (POX) plants
Based on indicative commercial terms provided by several prospective buyers, the marketing study
validated the project’s financial modeling assumptions related to treatment charges and gold
payability. The analysis concluded that an average net smelter return (NSR) of 87.9% for gold is
reasonable over the LOM and reflects treatment charges associated with the presence of As in the
concentrate.