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Canagold Mobilizes Two Diamond Drills and Commences 24,000 Meter Drill Program at New Polaris Gold Mine, BC
VANCOUVER, BC / ACCESSWIRE / May 18, 2021 / Canagold Resources Ltd. (TSX:CCM)(OTCQB:CRCUF)(Fr...
About this update from Canagold Resources Ltd
[{"type":"text","content":"Canagold Mobilizes Two Diamond Drills and Commences 24,000 Meter Drill Program at New Polaris Gold Mine, BCVANCOUVER, BC / ACCESSWIRE / May 18, 2021 / Canagold Resources Ltd. (TSX:CCM)(OTCQB:CRCUF)(Frankfurt:CANA) is pleased to announce that two diamond drills have been mobilized to its 100% owned New Polaris Gold project in northern British Columbia to commence a 24,000 meter drill program.Drill Program OverviewITL Diamond Drilling Ltd. will complete a 47-hole, 24,000 meter combined infill and stepout drill program designed to upgrade a large part of the Inferred Resource to the Indicated Resource category for inclusion in a future feasibility study, in addition to targeting the gold mineralization down plunge.The infill drill holes range in depth from 300 to 650 meters, providing greater density of drill intercepts in areas of sparser coverage in the modeled resource (Refer to drill collar map and inclined section). Two deeper holes of approximately 1,000 meters in length will be drilled as part of the program to test between 200 to 250 meters down plunge of the modeled extent to the gold mineralization. These will be the deepest holes drilled on the project to date and the results will serve to guide the design of future drill programs.New Polaris PEA HighlightsThe 2019 Preliminary Economic Assessment (\"PEA\") delineated Indicated Resources of 1.7 million tonnes containing 586, 000 ozs gold at 10.8 gpt and Inferred Resources of 1.5 million tonnes containing 485,000 ozs gold at 10.2 gpt**. At a gold price of US$1500 per oz, $CA/$US exchange rate of 0.71, cash costs (US$400 per oz) and AISC (US$469 per oz ), the updated PEA (news release May 20, 2020) shows an after-tax NPV (5%) of US$333 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 CA$847 million with a 68% IRR and a 1.7 year pay-back period.Project OverviewCanagold's flagship asset is the 100% owned New Polaris Gold Mine project located in northwestern British Columbia about 100 kilometers (\"km\") south of Atlin, BC and 60 km northeast of Juneau, Alaska. The property consists of 61 contiguous Crown-granted mineral claims and one modified grid claim covering 850 hectares.The deposit is an early Tertiary, mesothermal gold mineralized vein system occupying s...