Canagold Announces Agreement with Taku River Tlingit First Nation for Flagship New Polaris Project

Vancouver, B.C. – January 25, 2023 - Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA) (the “Company” or “Canagold”), is pleased to announce it has signed an agreement with the Taku River Tlingit First Nation (“TRTFN”) in respect of development of the Company’s New Polaris project (“New Polaris”, or the “project”) located within the traditional territory of the TRTFN located approximately 100 kilometres south of Atlin, B.C.

The Hà Khustìyxh/“Our Way” agreement establishes the framework for a cooperative and mutually respectful working relationship between the signatories to support Canagold’s exploration and advancement activities at New Polaris while ensuring to minimize any adverse impacts of mining activity on the rights and interests of the TRTFN. In addition, this initial accord lays the foundation for negotiation of future long-term agreements as the project progresses through its permitting, construction and production phases.

“I’m particularly pleased that Canagold has entered into this groundbreaking agreement, which underscores our Company’s strong commitment to the environment and reflects the spirit of collaboration we share with the TRTFN,” said Catalin Kilofliski, CEO of Canagold. “The agreement not only enshrines the progressive and ecologically sustainable basis of our partnership, it also demonstrates our determination to support local communities within the traditional territory while at the same time rewarding our shareholders.”  

The agreement also includes a framework for information-sharing, permitting processes, environmental protection and monitoring, as well as sharing of benefits to support community development initiatives. Through this collaborative approach, Canagold is able to obtain consent and support its exploration and evaluation activities within the TRTFN territories.

Canagold and TRTFN are committed to continue collaborating on various initiatives, including discussions on the recently announced Indigenous Protected and Conserved Area (IPCA), in line with TRTFN’s stated desire to allow environmentally sound mining to take place in the Territory.

About New Polaris

New Polaris is Canagold’s flagship asset, which is the 100% owned gold mine project located in northwestern B.C. about 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 TRTFN traditional territory. Canagold is firmly committed to working closely with the TRTFN on all aspects of the project’s consultations, planning and future development plans. The Company’s primary objective is to build a successful long-term partnership with TRTFN, in order to plan and create together a project with a long-lasting positive impact on the environment, the members of the TRTFN, the local community of Atlin and other surrounding communities.

A Preliminary Economic Assessment (PEA), completed in February 2019 by Moose Mountain Technical Services, demonstrated the robust economic viability of the project. 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 C$469 million with an after-tax Internal Rate of Return (IRR) of 56% and a 1.9 year pay-back period. On a pre-tax basis, the undiscounted life-of-mine cash flow totals C$847 million (C$/US$ exchange rate 0.71).

The current resource (from the 2019 PEA, 4g/t Au cut off) includes an Indicated resource of 586,000 oz Au (1.7Mt @ 10.8 g/t) and an Inferred resource of 485,000 oz Au (1.5Mt @ 10.2 g/t).

During 2021 and 2022 over 30,000 metres of drilling in 54 holes was completed to upgrade the inferred resource to the indicated resource category and increase the mineral resources. An update to mineral resource estimates will be made using this recent and currently ongoing drilling information for the feasibility study.

Disclaimer

The information contained or referenced herein is for information purposes only in order to provide the views of Sun Valley and the matters which Sun Valley believes to be of concern to shareholders described herein. The information is not tailored to specific investment objectives, the financial situations, suitability, or particular need of any specific person(s) who may receive the information, and should not be taken as advice in considering the merits of any investment decision. The views expressed herein represent the views and opinions of Sun Valley, whose opinions may change at any time and which are based on analyses of Sun Valley and its advisors.

Contacts

Sun Valley:

Daniel Henao

Partner / VP Business Development

Phone: 6042607046

Email: dhenao@sunvalleyinv.com