Canagold Resources reviews 2021 activities
2022-01-12 14:17 ET - News Release
Mr. Scott Eldridge reports
CANAGOLD SUMMARIZES 2021 RESULTS AND OUTLINES 2022 PLANS TO ADVANCE THE HIGH GRADE NEW POLARIS GOLD MINE PROJECT, BRITISH COLUMBIA
Canagold Resources Ltd. has highlighted the results of its 2021 activities and has outlined its 2022 plans to advance the high-grade New Polaris gold mine project in British Columbia and other gold exploration projects in the United States and Canada.
Scott Eldridge, CEO and Director, said, "2021 was an exciting year for Canagold, both at the corporate level and at New Polaris. We continue to see impressive high-grade intervals in our infill drilling which demonstrates the continuity of New Polaris' mineralization. What's more, we are now finding impressive high-grade intercepts in the C9 and C10 veins, parallel to the C-West Main (CWM) vein.
The rising number of thick, high grade drill intercepts in the C-9 and C-10 veins from last year's infill drill program is bringing about a rethinking of the economic potential of the other parallel veins in the stacked C vein system. We look forward to receiving more assay results pending from last year in addition to results we'll receive from this winters' ongoing drilling."
2021 Highlights:
Corporate
Strengthened the Management Team with the addition of Knox Henderson as Vice-President Corporate Development. Previously, Mr. Henderson held similar roles with Great Bear Resources and Kodiak Copper.Closed a private placement of common shares for gross proceeds of CAD $5.3million.
New Polaris Project, British Columbia
Successfully completed a 47-hole, 24,000 meter drilling program to upgrade the Inferred Resources to a Measured or Indicated Resource category for inclusion in a future feasibility study. Results confirmed the continuous and high-grade nature of the C-West Main deposit and discovered potential for resource expansion in two parallel veins located in the hanging wall of the C-West Main zone. Due to assay lab backlogs, assay results for only 20 of the 47 holes have been completed. Highlights of the CWM drill results are shown in Table 1.
Several drill holes returned significant intercepts of gold mineralization in two hanging-wall veins of the CWM Vein system. Combined with holes previously drilled in 1995 and 2006, the number of intercepts to date include nine in the C-9 vein and thirteen in the C-10 vein. Highlights of the intercepts are shown in Table 2 below.
The samples were submitted to the ALS Geochemistry lab in Whitehorse, YT for preparation and assaying.Conducted 12 months of baseline data collection needed for submission with an Environmental Assessment application.
Windfall Hills Project, British ColumbiaPlan to conduct analysis of the structural and lithological controls on mineralization needed to determine the next steps for the Windfall Hills property. Canagold may seek a partner to advance the project.
Princeton Project, British ColumbiaIn 2020 Canagold assigned its rights to earn up to a 75% interest in the Princeton property from Universal Copper and Sydney Wilson to Damara Gold Corp. On December 31, 2021 Damara issued an additional 9,841,371 Damara Shares to increase the Company's ownership in Damara to 19.9% of the outstanding Damara Shares.The 9,841,371 Damara shares issued to Canagold have an aggregate deemed value of $787,310 at eight cents per Damara share.
Fondaway Canyon and Dixie Comstock Projects, NevadaReceived US $100,000 cash and $200,000 share consideration as well as a $65,000 reduction in annual holding costs from Getchell Gold who has optioned the Fondaway Canyon and Dixie Comstock properties in Churchill County, Nevada.Getchell can acquire 100% of the two projects at any time on or before the 4th anniversary of the agreement by paying Canagold US $2.0M in cash and US $2.0M in Getchell shares and granting Canagold a 2% net smelter return royalty (NSR).In 2021, Getchell completed 10 drill holes at Fondaway Canyon for a total 3,874 metres.
Lightning Tree Project, IdahoReceived 1,250,000 common shares of Ophir Gold Corp and 1,250,000 warrants and $12,500 in cash per the terms of the option agreement allowing Ophir to earn a 100% interest in the Lightning Tree Property. Ophir completed a 10-hole 2,063 meter drilling program at the property in 2021.
2022 Plans:
Canagold's strategies to create shareholder value in 2022 include:Continuing to focus on advancing our core asset, the New Polaris gold mine project, with additional infill and exploration drilling.Continue environmental baseline studies and geotechnical and engineering work needed to support an application to the BC Environmental Assessment office for an Environmental permit to build the mine.Continue discussions with interested parties to find partners to advance the Windfall Hills project and to option or sell the remaining US gold exploration projects.Pursue opportunistic acquisition of strategic new projects where we can add significant value.
New PolarisConduct an additional 10,000 meters of infill and exploration drilling to expand and upgrade the defined resource.Update the resource model with results from the 2021 and ongoing diamond drilling program.Conduct additional metallurgical testing of the BIOX process to obtain detailed information needed for feasibility engineering studies.Complete baseline studies, summarize and analyze baseline sampling results and complete geotechnical and engineering work needed to support the Environmental Assessment application.
Windfall HillsContinue further analysis of the structural and lithological controls on mineralization to determine the next phase of exploration for the property. Canagold may seek a partner to advance the project.
Nevada ProjectsSeek partners or buyers for the rest of the Company's projects in Nevada, including:A&T - 2 patented claims covering 42 acres on Winnemucca Mountain, Humboldt CountyBull Run - 34 patented claims covering 586 acres near Jerritt Canyon, Elko CountyClear Trunk - 77 unpatented claims and fee mineral lands covering a total of 4,627 acres south of Winnemucca, Pershing and Humboldt CountiesCorral Canyon - 92 unpatented lode claims covering 1,798 acres in Humboldt County.Hot Springs Point - A quarter section mineral and surface rights covering 160 acres in Eureka CountyJarbridge - 8 patented claims covering 128 acres in Elko CountySilver Peak - 2 patented mining claims covering 36 acres within the Mineral Ridge gold mine claim block, Esmeralda County