Canagold Announces Additional Results From New Polaris Drill Program Including 14.3 gpt Au Over 2.7 m and 15.3 gpt Au Over 1.7 m

Vancouver, Canada – July 19, 2021 – Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA) announces high-grade gold assay results for two more drill holes from the ongoing 24,000 meter (m), 47-hole drill program at its 100% owned New Polaris Gold project in northwestern British Columbia, located 100 kilometers (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 at New Polaris.

Highlights

  • 14.3 grams per tonne (gpt) gold (Au) over 2.7 meters (m) in hole 21-1783E3
  • 15.3 gpt Au over 1.7 m in hole 21-1829E1

Scott Eldridge, CEO and Director, said, “Following up our first two holes, which intersected 24.2 grams per tonne gold over 6.6 metres and 15.8 grams per tonne gold over 13.0 metres, these latest results support the excellent continuity of high gold grades within our inferred resources.

As with the first two holes of the current drill program, these results fall within the PEA mine plan and support our goal to upgrade the inferred resources to the indicated category. The second objective of the current drill program is to test the depth potential by drilling deeper than the 600 metre limit of the current resource.”

Similar to the first three mineralized drill hole intercepts reported in the previous news release (dated July 6, 2021), these two drill holes intercepted the mineralized zone within meters of the anticipated intersection depth. The two mineralized intervals compare well to surrounding holes drilled in 2006 on a gram-meter (g-m) gold basis (Au gpt X length of intercept in meters) that further confirms the consistency of the C West Main mineralization from hole to hole:

  • 15 g-m Au in hole 06-1813E2
  • 26 g-m Au in hole 21-1829E1
  • 39 g-m Au in hole 21-1783E3
  • 53 g-m Au in hole 06-1707DE1
  • 85 g-m Au in hole 06-1768E4A

Out of the planned 47-hole, 24,000 m program, twelve holes have now been completed, of which assay results have been received for five holes. All the samples collected from the mineralized zone in these holes have been submitted to the ALS Geochemistry lab in Whitehorse, YT for gold analysis. Detailed information for the two drill holes and the sample assay results and mineralized intercepts are provided in Table 1 and Table 2 below. 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.

Results from the remaining 42 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 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 – 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 modeled 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, ON for example has been mined to depths of more than 2,200 m.).

*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.

New Polaris Overview

Canagold’s flagship asset is the 100% owned New Polaris Gold Mine project located in northwestern British Columbia about 100 kilometers south of Atlin, BC and 60 kilometers 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 cross-cutting 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 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 the quartz-carbonate stock-work veins and altered wall-rocks. Individual mineralized zones extend for up to 250 meters in length and up to 14 meters in width, though mineralized widths more commonly range from 2 to 5 meters.

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.

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 Whitehorse, YT 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.

“Scott Eldridge”

____________________
Scott Eldridge, Chief Executive Officer
CANAGOLD RESOURCES LTD.

About Canagold – Canagold Resources Ltd. is a growth-oriented gold exploration company focused on generating superior shareholder returns by discovering, exploring and developing strategic gold deposits in North America. Canagold shares trade on the TSX: CCM and the OTCQB: CRCUF.

For More Information – Please contact: Scott Eldridge, CEO
Toll Free: 1-877-684-9700 Tel: (604) 685-9700 Cell: (604) 722-5381
Email: scott@canagoldresources.com Website: www.canagoldresources.com