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Canagold drills 13 m of 15.8 g/t Au at New Polaris

2021-07-06 09:59 ET - News Release

Mr. Scott Eldridge reports

CANAGOLD ANNOUNCES INITIAL 2021 DRILL RESULTS FROM NEW POLARIS PROJECT INCLUDING 24.2 GPT GOLD OVER 6.6 M AND 15.8 GPT GOLD OVER 13.0 M

Canagold Resources Ltd. has released initial high-grade gold assay results from the first three diamond drill holes of the 24,000-metre, 47-hole drill program currently under way at its 100-per-cent-owned New Polaris gold project in northwestern British Columbia, located 100 kilometres (km) south of Atlin and 60 km northeast of Juneau, Alaska. New Polaris lies within the Taku River Tlingit First Nations traditional territory. Canagold is committed to providing employment and business opportunities that help support the local economies in the vicinity of its exploration projects. The focus of the drill program is the C West Main vein system which hosts a major part of the gold resources.

Highlights:

  • 12.0 grams per tonne (g/t) gold (Au) over three metres (m) in hole 21-1737E1;
  • 24.2 g/t Au over 6.6 m in hole 21-1783E1;
  • 15.8 g/t Au over 13.0 m in hole 21-1783E2.

Including:

  • 25.6 g/t Au over 6.3 m;
  • 20.4 g/t Au over two m.

Scott Eldridge, chief executive officer and a director, remarked: "We are very encouraged by the initial drill results of our 2021 drill program at New Polaris. The first three holes returned stronger-than-anticipated results, with multiple intercepts returning grades up to two and one-half times higher than the average grade of our indicated and inferred resources and true widths above our three-metre average mining width from the 2019 PEA [preliminary economic assessment]. These early results should have a meaningful impact on the resource and demonstrate that the size and confidence are both increasing at New Polaris."

Drilling commenced in late May, with the first eight diamond drill core holes now complete, of which the first three have been assayed, out of the planned 47-hole, 24,000-metre program. The drill holes intercepted the mineralized zone within metres of the anticipated intersection depth which emphasizes the consistency of the mineralization from hole to hole.

All the samples collected from the mineralized zone in these holes have been submitted to the ALS lab in Whitehorse, Yukon, for gold analysis. Detailed information for the three drill holes and the sample assay results and mineralized intercepts are provided in the attached table.

Results from the remaining 44 holes to be drilled in this program will be released every few weeks as they become available throughout the summer and fall.

Infill holes to upgrade inferred resources to indicated resources

The program is designed to primarily in-fill drill the inferred category areas of the C West Main vein system and to explore the downplunge potential 200 to 250 m below the 600-metre depth of the currently defined resources. The infill drill holes range in depth from 300 to 650 m and are designed to provide greater density of drill intercepts (20-metre to 25-metre spacing) in areas of inferred resources between 150 and 600 m below surface. The improved drill density will be used to upgrade parts of the resource categorized as inferred in the 2019 PEA to the indicated resource category for inclusion in a future feasibility study.

Exploration holes to test downplunge potential and expand mineralized zone

Two deeper exploration holes of approximately 1,000 m in length will be drilled as part of the program to test between 200 to 250 m downplunge of the modelled extent to the gold mineralization. These will be the deepest holes drilled on the project to date and the results will serve to guide the design of future drill programs. Typically, mesothermal gold systems continue for depths far exceeding the current 600-metre depth of New Polaris (similar high-grade gold mineralization at Red Lake, Ont., for example has been mined to depths of more than 2,200 m.).

New Polaris overview

Canagold's flagship asset is the 100-per-cent-owned New Polaris gold mine project, located in northwestern British Columbia 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 modified grid claim covering 850 hectares.

The New Polaris gold deposit is an early Tertiary, mesothermal gold-bearing vein system occupying shear zones crosscutting late Paleozoic andesitic volcanic rocks. It was mined by underground methods from 1938 to 1942 and from 1946 to early 1951, producing approximately 245,000 ounces (oz) gold from 740,000 tonnes of ore at an average grade of 10.3 g/t gold. Three main veins (AB, C and Y) were mined to a maximum depth of 150 m and have been traced by drilling for up to 1,000 m along strike and up to 800 m downdip, still open for expansion. The gold occurs dominantly in finely disseminated arsenopyrite within the quartz-carbonate stockwork veins and altered wall rocks. Individual mineralized zones extend for up to 250 metres in length and up to 14 metres in width, though mineralized widths more commonly range from two to five metres.

Qualified person

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.

Drill core sampling and quality assurance/quality control program

Drill core is geologically logged to identify the gold mineralized zones that are allocated unique sample number tickets and marked for cutting using a purpose-built diamond blade rock saw. Half-core samples are collected in labelled bags and the other half remains in the original core box stored on site. Quality control (QC) samples, including certified reference material standards, blanks and duplicates, are inserted into the sample sequence at intervals of one in 10 on a rotating basis to monitor laboratory performance and provide quality assurance (QA) of the assay results. Several sample bags are transported together in rice bags with unique numbered security tags attached and labelled with company and lab contact information to ensure sample security and chain of custody during shipment to the lab.

The samples are submitted to the ALS lab in Whitehorse, Yukon, for preparation and assaying. The entire sample is crushed to 70 per cent passing minus two millimetres and a 250-gram aliquot is split and pulverized to 85 per cent passing minus 75 microns. Analysis for gold is by 30-gram fire assay and gravimetric finish. A suite of 30 other elements, including arsenic, antimony, sulphur and iron, are analyzed by aqua regia digestion inductively coupled plasma atomic emission spectroscopy (ICP-AES). ALS Canada Ltd. is accredited by the Standards Council of Canada and is an ISO/IEC 9001:2015 and 17025:2017 certified analytical laboratory in North America.

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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