Canagold Increases Indicated Gold Resource by 89% in Updated Mineral Resource Estimate for New Polaris Gold Project, BC
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Canagold Increases Indicated Gold Resource by 89% in Updated
Mineral Resource Estimate for New Polaris Gold Project, BC
Vancouver, B.C. – May 16, 2023 - Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA)
(“Canagold” or the “Company”) is pleased to announce the Updated Mineral Resource Estimate for New
Polaris Gold Project located approximately 100 kilometres south of Atlin, BC.
Underground Mineral Resource Estimate (MRE): 2.97 million tonnes (Mt)@ 11.6 grams per tonne gold
(gpt Au) for 1.11 million ounces (Moz) contained gold Indicated and 0.93 Mt @ 8.93 gpt Au for 0.27 Moz
contained gold Inferred.
Highlights:
• 89% increase in the Indicated category contained ounces of gold compared to the 2019
preliminary economic assessment (“ PEA”) resource due to a very successful 2021 -22 infill drill
program.
• 23% Increase to the overall resource tonnage due to the additional veins defined by the 2021-22
infill drilling that were integrated into the new geological model.
• Gold grade improvement by 8% in the Indicated category to 11.61 gpt Au, up from 10.8 gpt Au
in the 2019 PEA due to the refined geological model constrained by the additional drilling.
• The updated 2023 MRE provides the Indicated category resource required to underpin the
Feasibility Study announced on October 11, 2022.
“Canagold’s 2021-22 exploration program has proved highly successful in reaching our primary objective
of adding more gold ounces into the Indicated category,” said Catalin Kilofliski, CEO of Canagold
Resources. “The Company’s goal has been to hit our target of more than one million ounces to feed into
the feasibility study currently underway with Ausenco Engineering. Right now, we’re working with a
potential mine plan that targets 100,000 ounces per year based on an approximately 10-year mine life and
assuming the current drilling depth we’ve achieved to date.”
The updated 2023 MRE reflects the Company’s success in completing an additional 40,000 meters (“m”)
of infill drilling, targeting areas of previously inferred category resource from the 2019 PEA. The refined
geological model now includes 17 vein domains of at least 2 metre width. A grade shell was applied to the
block model and any outlying mineralized volumes too small to be considered to have “reasonable
prospects for eventual economic extraction” were discarded to create the resource at each Au cutoff
grade. A base case cutoff grade of 4 gpt Au was selected which covers the preliminary mining, processing
and G&A costs at the base case Au price, and using the inputs as summarized in the Notes to the resource
table, below.
New Polaris - Resource Estimate, effective date: April 20, 2023 and Comparison to 2019 PEA
2023 Resource 2019 Resource Difference as a
Percent:
Class
Cutoff Tonnage
(ktonnes)
Au
(gpt)
Au
(koz)
Tonnage
(ktonnes)
Au
(gpt)
Au
(koz)
(2023-2019)/2019
(Au gpt) Tonnage Au
Grade
Au
Metal
Indicated
3 3,118 11.21 1,124 1,798 10.40 601 73% 8% 87%
4 2,965 11.61 1,107 1,687 10.80 586 76% 8% 89%
5 2,769 12.11 1,078 1,556 11.30 565 78% 7% 91%
6 2,525 12.75 1,035 1,403 12.00 541 80% 6% 91%
7 2,270 13.45 981 1,260 12.60 510 80% 7% 92%
8 2,049 14.09 928 1,105 13.30 473 85% 6% 96%
9 1,814 14.81 864 947 14.10 429 92% 5% 101%
10 1,594 15.55 797 1,639 9.50 501 -3% 64% 59%
Inferred
3 1,061 8.24 281 1,582 9.80 498 -33% -16% -44%
4 926 8.93 266 1,483 10.20 486 -38% -12% -45%
5 817 9.52 250 1,351 10.70 465 -40% -11% -46%
6 706 10.16 231 1,223 11.20 440 -42% -9% -48%
7 603 10.78 209 942 12.50 379 -36% -14% -45%
8 491 11.52 182 753 13.80 334 -35% -17% -46%
9 371 12.51 149 653 14.60 307 -43% -14% -51%
10 291 13.33 125 0 0.00 0
Notes to the Resource Table:
1. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
There is no certainty that all or any part of the mineral resources will be converted into mineral
reserves.
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$66.00/t.
4. Metallurgical Au recovery of 90.5%;
5. NSR (CDN$/t)=Au*90.5%*US$74.72g/t;
6. The specific gravity is 2.81 for the entire deposit;
7. 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 2023 MRE.
• Interpolation was by inverse distance squared ( “ID2”), which is a change from Ordinary kriging
used in the 2019 PEA. However, variograms were created on a global basis to aid in determination
of Classification parameters.
• Gold values were capped for each individual domain of the geological model based on s tatistical
probability plots.
• The 2023 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 2023 MRE table presents undiluted values of gold grade and contained gold ounces.
• The following factors, among others, could affect the 2023 MRE: assumptions used in generating
confining sha pes, 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, o r other
relevant factors that could materially affect the 2023 MRE.
The figure below illustrates a three-dimensional view of the previous underground workings, and the
modelled vein shapes with the blocks illustrating the classification.
Figure 1: Classification of the Polaris Resource
About New Polaris
New Polaris is Canagold’s flagship asset, which is the 100% owned gold mine project located in
northwestern B.C. about 100 kilometres south of Atlin, B.C. and 60 kilometres northeast of Juneau, Alaska.
The property consists of 61 contiguous Crown -granted mineral claims and one mod ified grid claim
covering 850 hectares. New Polaris lies within the Taku River Tlingit First Nation (“TRTFN”) traditional
territory. Canagold is firmly committed to working closely with the TRFTN on all aspects of project’s,
consultations, planning and fut ure development plans. The Company’s primary objective is to build a
successful long-term partnership with TRTFN, in order to plan and create together a project with a long -
lasting positive impact on the environment, the members of the TRTFN, the local community of Atlin and
other surrounding communities.
Feasibility Study
The updated Mineral Resource Estimate will be integrated into the New Polaris Feasibility Study (“FS”)
that commenced in 2022 and that the Company continues to advance over the course of 2023.
The FS is a definitive study building on the 2019 Preliminary Economic Assessment (“PEA”) that
demonstrated reasonable prospects for eventual economic extraction of the New Polaris Project. Using a
gold price of US $1,500 per oz, the PEA i ndicated cash costs of US$400 per oz, an after -tax Net Present
Value (NPV with 5% discount) of CA$469 million with an after-tax Internal Rate of Return (IRR) of 56% and
a 1.9 year pay-back period.
The PEA proposed an underground mine with a 750 tonnes per day (tpd) process plant that would operate
year-round, producing approximately 80 koz of doré gold annually at full production . The project site
would include an on -site camp and airstrip, as well as a downstream ba rge landing site. Major bulk
supplies for mining and processing would be barged along the Taku River to the barge landing site
between May and September. Minor supplies and personnel would be flown to and from the mine site
via small aircraft or helicopter.
Backed by the positive results of the updated Mineral Resource Estimate, the Company is evaluating the
prospect of increased annual gold production , potentially increas ing the throughput design basis
underlying the FS.
The FS is supported by Ausenco Engineering Canada Inc. (“Ausenco”) who have been retained to provide
basic engineering and study services for surface infrastructure and the process plant, freight logistics and
environmental baseline work. AMC Mining Consultants (Canada) Ltd. (“AMC”) have been retained to
provide all study requirements associated with mining. The Company expects to conclude the FS during
2024.
Qualified Person
The 2023 MRE was prepared by Sue Bird, M Sc., P.Eng. V.P. of Resources and Engineering at Moose
Mountain Technical Services, an independent Qualified Person as defined by NI 43 -101. Sue has also
reviewed and approved the technical information about the 2023 MRE contained in this news release.
Garry Biles, P.Eng, President & COO for 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 T oronto 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.
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States private securities
litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian
securities legislation. Statements contained in this news release that are not historical facts are forward -looking
information that involves known and unknown risks and uncertainties. Forward -looking statements in this news
release include, but are not limited to, statements with respect to the future performance of Canagold, and the
Company's plans and exploration programs for its mineral properties, including the timing of such plans and
programs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "has
proven", "expects" or "does not expect", "is expected", "potential", "appears", "budget", "scheduled", "estimates",
"forecasts", "at least", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will be
taken", "occur" or "be achieved".
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors
include, among others risks related to the uncertainties inherent in the estimation of mineral resources; commodity
prices; changes in general economic conditions; market sentiment; currency exchange rates; the Company's ability
to continue as a going concern; the Company's ability to raise funds through equity financings; risks inherent in
mineral exploration; risks related to operations in foreign countries; future prices of metals; failure of equip ment or
processes to operate as anticipated; accidents, labor disputes and other risks of the mining industry; delays in
obtaining governmental approvals; government regulation of mining operations; environmental risks; title disputes
or claims; limitations on insurance coverage and the timing and possible outcome of litigation. Although the
Company has attempted to identify important factors that could affect the Company and may cause actual actions,
events or results to differ materially from those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly, do not place undue reliance on forward -
looking statements. All statements are made as of the date of this news release and the Company is under no
obligation to update or alter any forward-looking statements except as required under applicable securities laws.