Canagold drills 53.8 g/t gold over 2.78 metres at New Polaris, British Columbia

Canagold Resources Ltd. [CCM-TSX; CRCUF-OTC; CANA-FSE] reported high-grade gold assay results for 21 drill holes from the recently completed 9,000-metre drill program which has confirmed the high-grade and near-surface gold potential of the Y-Vein System at New Polaris, northwest British Columbia.

Highlights of gold mineralized intervals and true widths include 53.8 g/t gold over 2.78 metres [2.03 m] from 63.92 metres down hole P22Y10 in the Y20 vein; 18.0 g/t gold over 5.64 metres from 120.08 metres down hole P22Y15W1 in a previously unmodelled vein; 9.64 g/t gold over 7.14 metres [5.66 m] from 47.81 metres down hole P22Y09 in the Y20 vein; 12.5 g/t gold over 4.70 metres [2.16 m] from 213.05 metres down hole P22Y06 in the Y20 vein; and 11.0 g/t gold over 4.56 metres [2.84 m] from 85.85 metres down hole P22Y12 in the Y19 vein.

The results from the Y-vein infill drill holes confirm the high-grade gold potential of the Y19 and Y20 veins, especially at shallower depths and over a strike length of 300 metres that remains open to the north and the south. Grades and widths vary from very high-grade intervals, such as 53.8 g/t gold over a true width of 2.03 metres from 63.92 metres in hole P22Y10, to significant true widths of 5.66 metres of 9.64 g/t gold in hole P22Y09 for the Y20 vein. Both fit well within the resource parameters for the 2019 preliminary economic assessment mine plan.

Intervals of 18.0 g/t gold over 5.64 metres down hole at 120.08 metres in hole P2215W1 and 19.5 g/t gold over 0.3 metres down hole from 148.20 metres in hole P22Y07A in previously unmodelled veins are indicative of the en echelon nature of the Y vein system.

The final drill hole of P22Y25 was designed to intercept Y19 at a depth of 400 metres below surface, 50 metres deeper than any previous drill hole and returned an encouraging interval of 7.54 g/t gold over 4.15 metres. The presence of parallel Y-veins with high-grade gold now being delineated by deeper drilling prove the continuation of the Y19 vein to depths that highlight the potential for the system to yield additional ounces of gold to the resource.

“Our high-grade drilling results demonstrate the significant potential for adding more ounces of gold from a new zone that is both completely separate and nearer to the surface in the C-West Main vein,” said Catalin Kilofliski, CEO. “It’s a most welcome and rewarding development for all of us at New Polaris as the Y-veins were not originally part of the mine plan from the 2019 Preliminary Economic Assessment. It is a further testament to the support we have received from all of our project stakeholders, including Company shareholders, Sun Valley Investments, our largest shareholder, the local community and the Taku River Tlingit First Nation.”

The drill program was completed at the end of November, 2022 with a total of 8,940 metres drilled in 28 diamond core drill holes. One of the holes was designed to collect geotechnical data for underground development purposes as part of the feasibility study, and two additional holes were used to test a limestone unit that outcrops just south of the New Polaris deposit for possible use in ore processing. Three more drill holes targeted the C-vein system to improve the drill spacing at key locations. A total of 25 drill holes targeted the shallow high-grade Y-vein system.

The New Polaris Feasibility Study and the Environmental Assessment application preparations are progressing. Entry into the BC Environmental Assessment process is targeted for later in February and completion of the Feasibility Study is expected to take about 12 months.

Mihai Draguleasa will join the company as Chief Financial Officer and Corporate Secretary, effective immediately. Draguleasa is a Chartered Professional Accountant (CPA) with over 15 years of accounting experience. Draguleasa replaces Philip Yee, who has resigned from his CFO and Corporate Secretary positions.

Canagold’s flagship asset is the 100%-owned New Polaris Gold Mine project located about 100 km south of Atlin, B.C. and 60 km northeast of Juneau, Alaska.