Near Surface High-Grade Gold At New Polaris

VANCOUVER - Canagold Resources Ltd. reported on high-grade gold assay results from the recently completed 9,000-meter 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; and 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, 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.”