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Canagold Resources Ltd
Symbol CCM
Shares Issued 70,796,123
Close 2021-07-26 C$ 0.58
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Canagold drills 3.9 m of 30.8 g/t Au at New Polaris

2021-07-27 07:47 ET - News Release

Mr. Scott Eldridge reports

CANAGOLD DRILLS 30.8 GPT GOLD OVER 3.9 METERS AT NEW POLARIS PROJECT

Canagold Resources Ltd. has released high-grade gold assay results for three additional drill holes from the continuing, fully financed 24,000-metre, 47-hole drill program at its 100-per-cent-owned New Polaris gold project in northwestern British Columbia. The property is located 100 kilometres south of Atlin, B.C., and 60 km northeast of Juneau, Alaska.

The focus of the 2021 drill program is the C West Main vein system, which hosts a major part of the gold resources at New Polaris.

Highlights:

  • 30.8 grams per tonne gold over 3.9 m from 433.6 m in hole 21-1783E5, including:
    • 48.9 g/t Au over 1.8 m;
  • 16.0 g/t Au over 1.5 m from 411.3 m in hole 21-1873E6;
  • 11.6 g/t Au over 5.1 m from 464.9 m in hole 21-1829E2, including:
    • 35.2 gpt Au over 1.1 m.

Scott Eldridge, chief executive officer and director, said: "Our infill drilling continues to yield impressive high-grade gold intercepts with very good continuity of mineralization. The first eight holes of the 2021 drill program have each returned high-grade gold intercepts, the most notable being 24.2 grams per tonne gold over 6.6 metres and 15.8 grams per tonne gold over 13.0 metres. All 2021 drill holes to date fall within our PEA mine plan and support our goal of converting the inferred resources to the indicated category. We plan to collar our first deeper stepout exploration hole in early August."

The infill drill holes continue to deliver gold grades and mineralized widths that support the current resource at downhole depths as predicted by the geological model. The consistency of the C West Main mineralization is highlighted when the infill results are plotted amongst the previous drilling in long section in terms of gram-metre (g-m) intercepts, in that every pierce point above 7.5 g-m falls within the resource definition parameters of the PEA at a cut-off grade of 4.0 g/t and a minimum mining width of two m.

Out of the planned 47-hole, 24,000 m program, 17 holes have now been drilled, of which assay results have been reported for eight holes. All the samples collected from the mineralized zone in these holes have been submitted to the ALS geochemistry lab in Whitehorse for gold analysis. Detailed information for the two drill holes and the sample assay results and mineralized intercepts are provided in the associated table. The collar locations of the two holes in relation to other drill holes of the infill program are shown on the drill hole location map and the mineralized intercepts relative to previous drilling on the long section on the company's website.

Results from the remaining holes 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 infill drill the inferred category areas of the C West Main vein system and to explore the down-plunge potential 200 to 250 m below the 600 m 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 to 25 m 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 preliminary economic assessment (PEA) to the indicated resource category for inclusion in a future feasibility study.

Exploration holes to test down-plunge 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 down plunge 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 m 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 of 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 geochemistry 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 is analyzed by aqua regia digestion inductively coupled plasma atomic emission spectroscopy (ICP-AES). ALS Canada is accredited by the Standards Council of Canada and is an ISO/IEC (International Organization for Standardization/International Electrotechnical Commission) 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.

                DRILL CORE SAMPLE RESULTS DETAILS

Hole ID           From          To     Length (true width)          Au
                   (m)         (m)                     (m)       (g/t)

21-1783E5        433.6       434.6                     1.0        12.2
21-1783E5        434.6       435.6                     1.0        16.1
21-1783E5        435.6       437.5                     1.9        48.9
21-1783E5        433.6       437.5               3.9 (3.0)        30.8
21-1783E6        411.3       412.3                     1.0        14.8
21-1783E6        412.3       412.8                     0.5        18.4
21-1783E6        411.3       412.8               1.5 (1.2)        16.0
21-1829E2        464.9       465.9                     1.0        4.41
21-1829E2        465.9       466.9                     1.0        0.79
21-1829E2        466.9       468.0                     1.1        2.61
21-1829E2        468.0       469.0                     1.0        35.2
21-1829E2        469.0       470.0                     1.0        14.5
21-1829E2        464.9       470.0               5.1 (4.1)        11.6

Composites were calculated from length weighted Au sample interval 
results. Grade capping and cut-off have not been applied.

We seek Safe Harbor.

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