Canagold Announces Groundbreaking Collaboration Agreement with Taku River Tlingit First Nation at New Polaris Project

Vancouver, B.C. – March 30, 2023 - Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA) (the “Company” or “Canagold”), is pleased to announce it has entered into a groundbreaking collaborative engagement  agreement with the Taku River Tlingit First Nation (“TRTFN”) to enshrine its commitment to the spirit of reconciliation and sustainability in economic development in respect of the Company’s New Polaris project (“New Polaris”, or the “project”) situated in the traditional territory of the TRTFN  approximately 100 kilometres south of Atlin, B.C. 

The agreement establishes a robust framework for a long-term cooperative and mutually respectful working relationship between the parties in support of Canagold’s New Polaris exploration and advancement activities while undertaking to minimize any adverse impacts on the rights and interests of the TRTFN. In addition, this initial accord creates a platform for future negotiation of agreements as the project progresses through its permitting, construction and production phases. 

“I’m particularly pleased to announce the pioneering agreement that Canagold has reached with TRTFN for the development of Canagold’s New Polaris located in their traditional territory,” said Catalin Kilofliski, CEO of Canagold. “The accord places our collaboration on a strong, formal footing and underscores our Company’s deeply felt commitment to the environment and the shared values around reconciliation and sustainable economic development that we hold with TRTFN.”  

The agreement 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 seeking consent and support for the development of the New Polaris gold project within the TRTFN territories.

About TRTFN

The TRTFN territory covers over 40,000 square kilometres and includes what is now known as British Columbia, Yukon and Alaska. The town of Atlin, B.C., a community of about 400 people is the main community where the government and administration officials for the Taku River Tlingit First Nation are located. The TRTFN territory contains high mountains, expansive forests rich in wildlife and rivers filled with salmon.

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 TRFTN on all aspects of 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.

About Sun Valley

Sun Valley is a private equity firm focussed on the precious metals industry with portfolio companies and branch offices in the Americas, Europe and Asia. Sun Valley seeks to invest in sustainable development projects and operations with growth potential, low cash costs of production, or the operating flexibility to insulate against volatility in the commodity markets.

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