Mr. Scott Eldridge reports
CANAGOLD RESOURCES REPORTS PROGRESS ON THREE OPTIONED PROPERTIES
Canagold Resources Ltd. has provided an update on recent progress and planned 2021 activities at three of its gold properties optioned out to third parties. The option agreement terms typically include minimum annual property expenditures, cash payments, share payments and net smelter return royalties. The portfolio of marketable securities received from optionees thus far has already created significant value for Canagold.
Fondaway Canyon property, Nevada -- Getchell Gold Corp.
- Canagold optioned a 100-per-cent interest in the Fondaway Canyon and Dixie Comstock properties located in Churchill county, Nevada, to Getchell Gold.
- Getchell recently secured a drill rig and plans a 4,000-metre drill program commencing in May, 2021.
- In 2020, Getchell completed an initial drill program of 1,995 metres with positive results and the new geological information led to the recently released update of the mineralization model.
- Canagold has received the first year's anniversary payments of $100,000 (U.S.) in cash and $200,000 (U.S.) in Getchell Gold shares pursuant to the option agreement.
- The option agreement is now in the second year of property work commitment for a minimum of $400,000 (U.S.) with the first year minimum $300,000 (U.S.) having already been spent by Getchell.
Lightning Tree property, Idaho -- Ophir Gold Corp.
- Canagold optioned a 100-per-cent interest in the Lightning Tree claims (now part of the Breccia gold property) located in Lehmi county, Idaho, to Ophir Gold.
- Ophir recently signed a drill contract for a 3,200-metre drill program to commence June 1, 2021.
- Ophir is obligated to spend an aggregate $2-million in exploration expenditures over three years.
- By September, 2021, Canagold is scheduled receive an additional $25,000 cash and an additional 1.25 million Ophir Gold shares and 1.25 million Ophir Gold warrants.
Princeton property, British Columbia -- Damara Gold Corp.
- Canagold assigned its right to earn up to a 75-per-cent interest in the Princeton property from Universal Copper and Sydney Wilson to Damara Gold.
- Damara recently completed a drill program of 533 metres in nine holes and announced high-grade gold intercepts in the main vein on the property.
- Damara issued Canagold 9.9 per cent of the outstanding common shares of Damara and has taken all necessary steps to exercise the underlying option to acquire the Princeton property.
- If Damara holds its interest in the Princeton property until Dec. 31, 2021, Damara will issue additional Damara shares to increase the company's ownership in Damara to 19.9 per cent of the outstanding Damara shares.
The company remains primarily focused on advancing its 100-per-cent-owned New Polaris gold mine project in B.C. where a 47-hole, 24,000-metre drilling program will commence in May. In addition to New Polaris, Canagold holds numerous gold exploration properties, some of which are available for option.
Available projects for option
Canagold is seeking partners or buyers for the following projects in Nevada:
- Bull Run;
- Clear Trunk;
- Corral Canyon;
- Hot Springs Point;
- Silver Peak.
Garry Biles, PEng, president and chief operating officer for Canagold Resources, is the qualified person who reviewed and approved the contents of this news release.
About Canagold Resources Ltd.
Canagold Resources is a growth-oriented gold exploration company focused on generating superior shareholder returns by discovering, exploring and developing strategic gold deposits in North America.
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