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Fully-funded Canagold Resources advancing one of Canada's highest grade gold projects towards near-term production

4 de dic de 2023

Canagold Resources is advancing its New Polaris gold project in western Canada through permitting and feasibility studies, with the backing of major shareholder Sanval Investments.

  • The New Polaris project hosts 1.1M indicated ounces of gold at 11 g/t, one of the highest grades among undeveloped projects in western Canada.

  • Canagold is targeting 100,000 oz annual production over a 9-10 year mine life, with all-in sustaining costs of $1,000-1,100 per oz.

  • With Sanval's financing commitment, Canagold is fully funded through permitting and feasibility, eliminating dilution risk.

  • Canagold aims to be a consolidator in the sector, evaluating stressed assets to acquire once New Polaris reaches feasibility.

As CEO of Canagold Resources, Catalin Kilofliski is advancing the company’s wholly-owned New Polaris high-grade gold project in northwestern British Columbia through permitting and feasibility studies. With indicated resources of 1.1 million ounces grading 11 g/t gold, New Polaris boasts one of the highest grades among undeveloped projects in western Canada. This grade strength helps offset the asset’s remote location and makes New Polaris economically viable even at today's higher base case cost assumptions for new mines, Kilofliski said.

“Project today, which can bring a new project to the market with the economics of $1,000-$1,100 [per oz gold], it’s a great project,” he stated.

Kilofliski noted that Canagold is targeting life-of-mine all-in sustaining costs of $1,000 to $1,100 per oz, well below the current gold price near $2,000/oz. With average annual production targeted at 100,000 oz over a 9-10 year mine life, New Polaris could generate roughly $90 million in average annual free cash flow at current prices.

Such attractive project economics are underpinned by New Polaris’ exceptional gold grades, which range from 1.5 to over 20 meters in width, averaging 11 g/t from surface to 500 meters in depth. This grade consistency negates the need for high grading, allowing reliable modeling of costs and profitability. As Kilofliski explained:

"We are fortunate that the ore is very consistent top to bottom left to right so we can always mine around 11 grams per tonne."

Importantly, Canagold also benefits from a deep-pocketed strategic backer in the form of Colombia-focused miner Sun Vally Investments. Sun Valley owns 43% of Canagold shares and has committed to finance the company fully through feasibility and permitting. This funding support eliminates dilution risk, enhances flexibility for a future construction decision, and enables Canagold to pursue M&A opportunities.

As Kilofliski stated: “We solve that problem with Sun Valley. As long as we perform on execution to get to a production decision, we do not have that risk that everybody else in the junior space faces.”

With feasibility studies now over 50% complete, Canagold appears on track to make a production decision on New Polaris within 18-24 months. In the meantime, Sun Valley's backing uniquely positions the company to evaluate distressed assets to acquire, as it charts a course to become a consolidator amid the current bear market.

The Investment Thesis for Canagold Resources

  • New Polaris' exceptional gold grades underpin attractive economics even at higher industry cost levels

  • Initial 100,000 oz annual production scalable with further exploration upside

  • Near-term production potential; feasibility studies over 50% complete

  • Funded through feasibility/permitting by strategic backer; no dilution risk

  • Deep value at just $30M market cap; huge torque to higher gold prices

  • Positioned to be a consolidator in a beaten-down sector with the backing of a strategic investor

Canagold Resources offers investors a unique value opportunity through its fully-funded high-grade gold project at New Polaris. With construction decisions pending within 18-24 months, near-term production potential, and a strong strategic backer, Canagold shares appear poised for substantial upside as gold markets strengthen. The company's tight capital structure and funding eliminate dilution risks during this critical phase. Canagold also stands ready to acquire stranded assets from distressed peers, leveraging its strategic backing from Sun Valley Investments. As one of few junior developers able to advance projects without relying on volatile public markets, Canagold presents a compelling leveraged play on the inevitable recovery in gold.


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