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Exhibit
99.1
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CANAGOLD RESOURCES LTD.
810-625 Howe Street
Vancouver, BC V6C 2T6
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T: 604.685.9700
F: 604.6685-9744
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www.canagoldresources.com
CCM: TSX
CRCUF: OTCQB
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Canagold Intersects 17.1 gpt Au Over 8.4 m in Hanging-Wall C10 Vein
and 25.7 gpt Au Over 2.1 m in C West Main Vein at New Polaris,
BC
Company to Host Webinar Today at 9:00 am PDT / 12:00 pm
EDT
__________________________________________________________________
Vancouver, Canada – September 22, 2021 – Canagold
Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA)
announces high-grade gold assays for four 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.
The
focus of the drill program is infill and step-out drilling in the C
West Main (“CWM”) vein system which hosts a major part
of the gold resources at New Polaris. The intercepts reported below
include results for two holes that also intercepted significant
mineralization in a parallel vein (“C10”) located in
the hanging-wall of the CWM vein.
Highlights:
●
Hole 21-1890E1
intersected 17.1 gpt Au over 8.4
m from 343.0 m in the C10 Vein and 8.58 gpt Au over 2.1 m from 442.5 m in
the CWM Vein
●
Hole 21-1890E2
intersected 7.25 gpt Au over 4.3
m from 368.0 m in the C10 Vein and 25.7 gpt Au over 2.1 m from 481.7 m in
the CWM Vein
●
Hole 21-1859E1
intersected 4.84 gpt Au over 2.2
m from 393.3 m in the CWM Vein
●
Hole
21-1800E1 intersected
8.60 gpt Au over 2.5 m from
534.6 m in the CWM Vein
Scott Eldridge, CEO and Director, said, “Intercepting high-grade
gold over robust widths in the C10 vein parallel to the CWM vein
was an unexpected bonus. The C10 vein has returned high-grade gold
results in the past, but we have not previously estimated any
resources for it. With these new drill results and further
drilling, there is an opportunity for the C10 vein to add
additional resources at New Polaris.
“Additionally, we continue to intercept high-grade gold
results in every infill drill hole intersecting the CWM vein. These
drill results fall within the PEA mine plan and increase the
density of drilling in the deposit so that we can upgrade inferred
resources to indicated resources. We anticipate further assays from
both the C10 and W West veins in the coming
weeks.”
The Company will host a webinar today at 9:00 am PDT / 12:00 pm EDT
where management will be available to answer questions following
the presentation. Online registration and participation details may
be found at the following link:
https://us02web.zoom.us/webinar/register/WN_VuzUgp0RQkuquTYTFaI6hQ
The infill drill holes continue to intercept good gold grades over
mineable widths throughout the CWM vein system and they support the
current resource at depth as predicted by the geological model. An
additional vein, the C10 vein, has been intersected in the CWM
hanging-wall about 90 to 100 meters above the CWM vein and has
returned high grade gold over mineable widths in two of the holes
(21-1890E1 and 21-1890E2) of the infill program so far
(Cross
Section). Three holes from
previous drill campaigns by Canagold had also intersected this zone
of mineralization:
●
13.7
gpt Au over 3.8 m from 318.6 m in hole P95C42
●
15.1
gpt Au over 2.5 m from 354.5 m in hole P95C43
●
14.9
gpt Au over 1.6 m from 297.5 m in hole 06-1859E2
These previous drill intercepts were never incorporated into the
geological model. More holes of the infill drill program are
expected to intercept this parallel vein and an updated geological
model incorporating all of these intercepts will be made at the end
of the drill program.
Out of the planned 47-hole, 24,000 m program, 26 holes have now
been completed, of which assay results have been received for 12
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
four 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. Additional drill
results are anticipated approximately every two weeks or
so.
Infill Holes to Upgrade Inferred Resources to Indicated
Resources
The program is designed primarily to in-fill drill the Inferred
Resources of the CWM vein system within the currently defined
resources in the PEA*. 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 Inferred Resources to Indicated Resources for inclusion in a
future feasibility study.
*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.
Exploration Holes to Test Down Plunge Potential and Expand
Mineralized Zone
Two
deeper exploration holes of approximately 1,000 m in length are
being drilled 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 to depths far exceeding the
current 600 m depth of the New Polaris Resources. Similar high
grade mesothermal gold mineralization at Red Lake, Ontario for
example has been mined to depths of more than 2,200 m.
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. 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 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 meters in length and
14 meters in width. Average 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: Knox Henderson, VP Corporate
Development
Toll Free: 1-877-684-9700 Tel: (604) 604-416-0337 Cell: (604)
551-2360
Email: knox@canagoldresources.com
Website: www.canagoldresources.com
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.
Table 1: Drill Hole Collar Information
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Hole ID
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Mine East
|
Mine North
|
Elevation
|
Dip
|
Azimuth
|
Final Depth
|
|
21-1800E1
|
1802.0m
|
518.5m
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19.4m
|
-74°
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346°
|
560m
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21-1859E1
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1859.9m
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637.7m
|
19.6m
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-72°
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355°
|
425m
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21-1890E1
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1882.3m
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590.3m
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19.7m
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-69°
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348°
|
491m
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21-1890E2
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1881.4m
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585.2m
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19.7m
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-78°
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350°
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500m
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Table 2: Drill Core Sample Results Details
|
Hole ID
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To (m)
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Length (m)
[True Width]
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Au (gpt)
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21-1800E1
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534.6
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535.6
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1.0
|
8.07
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21-1800E1
|
535.6
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537.1
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1.5
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8.97
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21-1800E1
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534.6
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537.1
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2.5 [2.0]
|
8.60
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21-1859E1
|
393.3
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393.7
|
0.4
|
18.1
|
|
21-1859E1
|
393.7
|
394.7
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1.0
|
0.025
|
|
21-1859E1
|
394.7
|
395.5
|
0.8
|
4.21
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21-1859E1
|
393.3
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395.5
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2.2 [1.7]
|
4.84
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21-1890E1
|
343.0
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344.0
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1.0
|
13.3
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|
21-1890E1
|
344.0
|
345.0
|
1.0
|
26.4
|
|
21-1890E1
|
345.0
|
345.8
|
0.8
|
6.60
|
|
21-1890E1
|
345.8
|
347.0
|
1.2
|
15.0
|
|
21-1890E1
|
347.0
|
348.0
|
1.0
|
23.9
|
|
21-1890E1
|
348.0
|
349.2
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1.2
|
30.4
|
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21-1890E1
|
349.2
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350.3
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1.1
|
13.1
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21-1890E1
|
350.3
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351.4
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1.1
|
6.06
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21-1890E1
|
343.0
|
351.4
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8.4 [6.8]
|
17.1
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21-1890E1
|
442.5
|
443.5
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1
|
9.77
|
|
21-1890E1
|
443.5
|
444.6
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1.1
|
7.50
|
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21-1890E1
|
442.5
|
444.6
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2.1 [1.7]
|
8.58
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|
21-1890E2
|
368.0
|
368.8
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0.8
|
7.18
|
|
21-1890E2
|
368.8
|
370.5
|
1.7
|
0.025
|
|
21-1890E2
|
370.5
|
371.3
|
0.8
|
12.9
|
|
21-1890E2
|
371.3
|
372.3
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1.0
|
15.4
|
|
21-1890E2
|
368.0
|
372.3
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4.3 [3.4]
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7.25
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|
21-1890E2
|
481.7
|
483.0
|
1.3
|
30.5
|
|
21-1890E2
|
483.0
|
483.8
|
0.8
|
18.0
|
|
21-1890E2
|
481.7
|
483.8
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2.1 [1.7]
|
25.7
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Composites were calculated from length weighted Au sample interval
results. Grade capping and cut-off have not been
applied.