Canagold Confirms Near Surface High-Grade Gold, Including 53.8 gpt Au over 2.78 m and 18.0 gpt Au over 5.64 m in Y-Vein System at New Polaris
Vancouver, B.C. – February 06, 2023 – Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA) (“Canagold” or “the Company”) is pleased to announce its 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.
Highlights of gold mineralized intervals and true widths (“m”)
- 53.8 gpt Au over 2.78 m [2.03 m] from 63.92 m down hole P22Y10 in the Y20 vein
- 18.0 gpt Au over 5.64 m from 120.08 m down hole P22Y15W1 in a previously unmodeled vein
- 9.64 gpt Au over 7.14 m [5.66 m] from 47.81 m down hole P22Y09 in the Y20 vein
- 12.5 gpt Au over 4.70 m [2.16 m] from 213.05 m down hole P22Y06 in the Y20 vein
- 11.0 gpt Au over 4.56 m [2.84 m] from 85.85 m 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 m that remains open to the north and the south. Grades and widths vary from very high-grade intervals, such as 53.8 gpt Au over a true width of 2.03 m from 63.92 m in hole P22Y10, to significant true widths of 5.66 m @ 9.64 gpt Au 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 gpt Au over 5.64 m down hole at 120.08 m in hole P2215W1 and 19.5 gpt Au over 0.3 m down hole from 148.20 m in hole P22Y07A in previously unmodeled 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 m below surface, 50 m deeper than any previous drill hole and returned an encouraging interval of 7.54 gpt Au over 4.15 m. 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, Canagold 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 Y-vein system has two parallel, steeply dipping veins striking north–south (Y19 and Y20 veins) located just north of the main resource of the C-West Main vein. By infilling the previous drilling, the recently completed drill holes will improve the resource category from inferred to indicated level for inclusion in the feasibility study being conducted by Ausenco Engineering.
Technical Studies Update
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. Ausenco Engineering is conducting the Feasibility Study and Ausenco Sustainability the Environmental Assessment work.
Management Appointments
The Company would like to announce that Mr. Mihai Draguleasa will join the Company as Chief Financial Officer and Corporate Secretary, effective immediately. Mr. Draguleasa is a Chartered Professional Accountant (CPA) with over fifteen years of accounting experience. He earned his CPA in Vancouver, British Columbia, while working in the multinational public accounting firms Deloitte and Ernst & Young. His mining related financial work experience at Deloitte and Ernst & Young included due diligence reviews, audits, and tax recoveries projects for large and medium mining companies.
Mr. Draguleasa replaces Mr. Philip Yee, who has resigned from his CFO and Corporate Secretary positions with the Company. The Board of Directors thanks Mr. Yee for his service and wishes him success in his future endeavours.
New Polaris Deposit Overview
Y-Vein Drilling Plan Map
Y19 Vein Longitudinal Section
Y20 Vein Longitudinal Section
Cross Section 1200
Cross Section 1250
Cross Section 1300
Cross Section 1350
Cross Section 1400
*The New Polaris resource is contained within a preliminary economic assessment (“PEA”) report which was prepared by Moose Mountain Technical Services in the format prescribed by NI43-101 Standards of Disclosure for Mineral Projects and filed on SEDAR April 18, 2019.
Table 1: Drill Core Sample Results Details
Section
Vein
Hole ID
From (m)
To (m)
Interval (m)
True Width (m)
Au (gpt)
Unknown
P22Y05
117.30
118.40
1.10
7.74
1350
Y19
P22Y05
123.00
124.00
1.00
1.86
1350
Y20
P22Y05
206.00
207.52
1.52
Mine Workings
1350
Y19
P22Y06
184.65
185.85
1.20
1.73
1400
Y20
P22Y06
213.05
217.75
4.70
2.16
12.5
Including
214.10
215.00
0.90
19.8
and
215.70
216.80
1.10
35.8
1350
Unknown
P22Y07A
67.20
70.63
3.43
6.46
Including
69.98
70.63
0.65
29.0
1350
Y19
P22Y07A
87.25
92.86
6.86
0.48
1325
Y20
P22Y07A
115.83
121.76
5.91
4.65
2.24
1300
Unknown
P22Y07A
148.20
148.50
0.30
19.5
1250
Y20
P22Y08
40.95
50.00
9.05
0.25
1300
Y19
P22Y09
15.40
16.40
3.00
1.68
1300
Y20
P22Y09
47.81
54.95
7.14
5.66
9.64
1300
Unknown
P22Y09
77.00
79.30
2.30
8.72
1300
Unknown
P22Y10
28.70
32.20
3.50
7.44
Including
31.60
32.20
0.60
18.2
1300
Y20
P22Y10
63.92
66.70
2.78
2.03
53.8
Including
63.92
64.95
1.03
80.8
Including
64.95
65.70
0.75
85.5
1300
Y19
P22Y10
86.89
88.11
1.22
6.76
1300
Unknown
P22Y10
111.58
114.40
2.82
4.88
Including
111.58
112.40
0.82
14.45
1300
Unknown
P22Y11
43.09
45.34
2.25
15.6
1300
Y20
P22Y11
52.25
58.04
5.79
3.29
2.60
1300
Y19
P22Y11
75.11
77.12
2.01
1.16
4.74
1250
Unknown
P22Y12
13.35
14.35
1.00
17.2
1250
Unknown
P22Y12
32.32
34.28
1.96
10.8
1250
Y20
P22Y12
73.50
75.46
1.96
1.33
1.47
1250
Y19
P22Y12
85.85
90.41
4.56
2.84
11.0
Including
86.60
87.44
0.84
42.5
1200
Y19
P22Y13
90.65
94.35
3.70
2.74
0.67
1200
Y20
P22Y13
137.40
143.50
6.10
4.53
7.06
Including
142.62
143.50
0.88
24.5
1200
Unknown
P22Y14
53.55
58.59
5.04
1.64
1200
Y19
P22Y14
78.45
84.00
5.55
5.08
0.99
1200
Y20
P22Y14
99.62
107.73
8.11
5.22
1.37
1200
Unknown
P22Y14
113.00
114.65
1.65
3.73
1200
Unknown
P22Y15W1
120.08
125.72
5.64
18.0
Including
122.00
122.86
0.86
31.9
Including
124.77
125.72
0.95
38.7
1200
Unknown
P22Y16
72.58
74.00
1.42
37.6
1200
Y20
P22Y16
199.25
200.78
1.53
0.88
1.87
1200
Y20
P22Y17
300.63
304.30
3.67
2.26
5.10
1200
Unknown
P22Y18
280.77
281.68
0.91
12.7
1250
Y19
P22Y19
238.35
240.06
1.71
0.75
3.55
1250
Y20
P22Y19
293.89
298.08
4.19
2.20
1.60
1250
Unknown
P22Y20
174.51
176.83
2.32
4.17
1300
Unknown
P22Y21
232.80
238.35
5.55
3.89
1300
Y20
P22Y21
411.12
418.65
7.53
1.85
8.09
1300
Y20
P22Y22
315.90
319.30
3.40
2.03
6.71
Including
318.45
319.30
0.85
23.0
1300
Unknown
P22Y23
167.00
169.30
2.30
9.72
1225
Unknown
P22Y24
88.47
92.00
3.53
9.53
1350
Unknown
P22Y25
324.10
326.10
2.00
10.81
1350
Y19
P22Y25
452.00
456.15
4.15
2.30
7.54
Table 2: Drill Hole Collar Information
Section
Hole ID
Mine East (m)
Mine North (m)
UTM East NAD83 Z8 (m)
UTM North NAD83 Z8 (m)
Elevation (m)
Dip (°)
Azimuth (°)
Final Depth (m)
1350
P22Y05
1774.5
1365.5
579570.0
6507645.0
21.7
-48
258
225
1400
P22Y06
1724.5
1371.5
579518.5
6507655.0
24.3
-57
289
248
1350
P22Y07A
1724.5
1371.5
579518.5
6507655.0
24.3
-45
235
173
1250
P22Y08
1656.6
1259.1
579454.4
6507536.3
22.9
-70
268
74
1300
P22Y09
1668.3
1307.6
579465.0
6507585.0
28.9
-70
268
101
1300
P22Y10
1615.5
1300.0
579412.4
6507576.3
39.4
-55
088
125.0
1300
P22Y11
1615.5
1300.0
579412.4
6507576.3
39.4
-45
088
101.0
1250
P22Y12
1588.0
1250.3
579385.9
6507526.1
37.9
-45
096
134.0
1200
P22Y13
1725.0
1200.0
579523.9
6507478.6
21.4
-58
270
161.0
1200
P22Y14
1725.0
1200.0
579523.9
6507478.6
21.4
-45
270
137.0
1200
P22Y15W1
1777.2
1195.0
579576.2
6507474.6
21.4
-58
262
302.0
1200
P22Y16
1777.2
1195.0
579576.2
6507474.6
21.4
-48
262
227.0
1200
P22Y17
1825.0
1200.0
579623.9
6507480.6
21.1
-58
265
332.0
1200
P22Y18
1825.0
1200.0
579623.9
6507480.6
21.1
-52
265
302.0
1250
P22Y19
1826.6
1251.0
579624.4
6507531.6
21.9
-58
270
326.0
1250
P22Y20
1826.6
1251.0
579624.4
6507531.6
21.9
-50
270
293.4
1300
P22Y21
1814.0
1290.0
579611.0
6507570.4
22.0
-63
270
425.0
1300
P22Y22
1814.0
1290.0
579611.0
6507570.4
22.0
-58
270
338.0
1300
P22Y23
1814.0
1290.0
579611.0
6507570.4
22.0
-48
270
266.0
1200
P22Y24
1772.2
1195.0
579576.2
6507474.6
21.4
-50
285
201.0
1325
P22Y25
1875.0
1325.0
579671.3
6507606.6
21.4
-62
275
470.0
New Polaris Overview
Canagold’s flagship asset is the 100% 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. New Polaris lies within the Taku River Tlingit First Nation 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 New Polaris gold deposit is an early Tertiary, mesothermal gold-bearing vein system occupying shear zones cross-cutting late Paleozoic andesitic volcanic rocks. It was mined by underground methods from 1938 to 1942, and again from 1946 to early 1951, producing approximately 245,000 oz gold from 740,000 tonnes of ore at an average grade of 10.3 gpt 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 down dip, still open for expansion. The gold occurs dominantly in finely disseminated arsenopyrite within quartz-carbonate stock-work veins and altered wall-rocks. Individual mineralized zones extend up to 250 metres in length and 14 meters in width. Average widths more commonly range from 2 to 5 metres.
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 ten 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 Yellowknife, NT for preparation and assaying. The entire sample is crushed to 70% passing -2 millimeters and a 250 gram aliquot is split and pulverized to 85% passing -75 microns. Analysis for gold is by 30 gram fire assay and gravimetric finish. A suite of 30 other elements including arsenic, antimony, sulfur 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.
Qualified Person
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.
On Behalf of the Board of Directors
“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: knox@canagoldresources.com
Website: www.canagoldresources.com
Neither the Toronto 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 equipment 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.