Canagold Drills 22.1 Grams per Tonne Gold over 4.3 Metres in Y-Vein System at New Polaris

Vancouver, B.C. – October 27, 2022 - Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA) (“Canagold” or the “Company”) announces high-grade gold assay results from the first four drill holes of 20 completed as part of an 8,000-metre drill program targeting the Y-veins at New Polaris.

The 8,000 metres (“m”) of drilling currently underway for 2022 primarily targets the shallow high-grade Y-vein system, located just north of the main resource of the C-West Main vein. The Y-vein system contains two parallel, steeply dipping veins striking north–south (Y19 and Y20 veins). By infilling the previous drilling, the planned holes will improve the resource category from the inferred to indicated level for inclusion in the feasibility study for which Canagold has engaged Ausenco Engineering.*

The results are from the first four infill holes, which are located in the northern part of the Y-vein system. These results clearly confirm the high-grade historic resource.

Gold mineralized intervals and true widths [m] from the assay results include:

• 22.1 gpt Au over 4.3 m [1.8 m] from 225.7 m down hole P22Y04 in the Y19 vein

• 22.9 gpt Au over 3.0 m [2.1 m] from 194.6 m down hole P22Y03 in the Y19 vein

• 9.39 gpt Au over 7.3 m [2.6 m] from 272.6 m down hole P22Y03 in the Y20 vein

• 7.48 gpt Au over 4.7 m [2.9 m] from198.0 m down hole P22Y02 in the Y19 vein

• 7.85 gpt Au over 3.3 m [unknown] from 123.2 m down hole P22Y04 in the previously unmodeled vein

• 5.81 gpt Au over 5.5 m [2.1 m] from 308.0 m down hole P22Y04 in the Y20 vein

(Details of drilling set out in Table 1 and Table 2 below)

"These high-grade drill results demonstrate the potential to add more ounces of gold in a completely separate, and nearer-to-surface zone from the C-West Main vein, and to this point, the Y-veins are not in the mine plan of our 2019 PEA,” said Canagold CEO Catalin Kilofliski. 

“To date, we’ve completed over 5,400 metres of our 8,000-metre program that is running ahead of schedule and under budget. The program is further testament to our commitment to shareholders as well as the support we’re receiving from our largest shareholder, Sun Valley Investments.  Since the formation of our new Board of Directors, we have raised the necessary capital to continue our exploration drill program, we’ve engaged Ausenco Engineering to commence a full feasibility study on New Polaris, and most recently, our full Board and management team was on site engaging with the local community and the Taku River Tlingit First Nations.”  

*The New Polaris resource is contained within a preliminary economic assessment (“PEA”) report that was prepared by Moose Mountain Technical Services in the format prescribed by NI43-101 Standards of Disclosure for Mineral Projects and filed on SEDAR on April 18, 2019.

New Polaris Deposit Overview

Y-Vein Drilling Plan Map

Y19 Vein Longitudinal Section

Y20 Vein Longitudinal Section

Table 1:  Drill Core Sample Results Details

Table 2:  Drill Hole Collar Information

New Polaris Overview

Canagold’s flagship asset is the 100% owned New Polaris Gold Mine project located in northwestern British Columbia 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 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 metres in length and 14 metres in width. Average widths more commonly range from 2 to 5 metres.

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 10 on a rotating basis to monitor laboratory performance and provide quality assurance 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 Yellowknife, NT for preparation and assaying. The entire sample is crushed to 70% passing -2 millimetres 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 analysed 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.

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.

About Sun Valley

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