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Canagold says gold resource up by 89% at Polaris gold project in B.C.

New Polaris gold mining operation in B.C. is Canagold’s flagship asset
Drill core from New Polaris.

An updated mineral resource estimate (MRE) for Canagold Resources’s (TSX:CCM, OTC-QB:CRCUF, Frankfurt:CANA) New Polaris Gold project has been released by the company. The project is located approximately 100 km south of Atlin, B.C. 

3 million tonnes at 11.6 g/t gold for 1.1 million oz. contained gold indicated and 930,000 tonnes at 8.93 g/t gold for 270,000 oz. contained gold inferred. 

Highlights from the MRE: 

  • 89% increase in the Indicated category contained ounces of gold compared to the 2019 preliminary economic assessment (“PEA”) resource due to a very successful 2021-22 infill drill program. 
  • 23% Increase to the overall resource tonnage due to the additional veins defined by the 2021-22 infill drilling that were integrated into the new geological model. 
  • Gold grade improvement by 8% in the Indicated category to 11.61 gpt Au, up from 10.8 gpt Au in the 2019 PEA due to the refined geological model constrained by the additional drilling.  

The updated 2023 MRE comes after the company completed an additional 40,000 metres of infill drilling, targeting areas of previously inferred category resource from the 2019 PEA. Using a gold price of US $1,500 per oz, the PEA indicated cash costs of US$400 per oz, an after-tax net present value (NPV with 5% discount) of $469 million with an after-tax Internal rate of return of 56% and a 1.9 year pay-back period.  

New Polaris is Canagold’s flagship asset, the 100% project is 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’s 2021-22 exploration program has proved highly successful in reaching our primary objective of adding more gold ounces into the Indicated category,” said Catalin Kilofliski, CEO of Canagold.  

“The company’s goal has been to hit our target of more than one million ounces to feed into the feasibility study currently underway with Ausenco Engineering. Right now, we’re working with a potential mine plan that targets 100,000 ounces per year based on an approximately 10-year mine life and assuming the current drilling depth we’ve achieved to date,” Kilofliski said.