Canagold Announces Positive Feasibility Study Results for the New Polaris Project

National Post

21-07-2025

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VANCOUVER, British Columbia — Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA) ('Canagold' or the 'Company') is pleased to announce positive results of the Feasibility Study ('FS') for its 100% owned New Polaris gold-antimony project located in northwest British Columbia, Canada. All dollar figures are in Canadian dollars unless otherwise indicated. The Company expects to file a technical report relating to the FS, prepared in accordance with National Instrument 43-101 ('NI 43-101'), within 45 days.
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Feasibility Study Highlights
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Robust Project Economics
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'The Feasibility Study results demonstrate exceptional economics, low Capex and low AISC for the New Polaris Gold-Antimony Project,' stated Canagold's Chief Executive Officer, Catalin Kilofliski. 'Even at a $2,500 Gold Price, the projected cash flow and economics are outstanding. While we continue to refine and optimize the Project aimed at unlocking additional revenue from antimony metal and reduction of power costs and emissions through potential run-of-river green power generation, our primary focus is now shifting toward completing the permitting process, in order to advance New Polaris toward a construction and production decision. I would like to express our sincere appreciation to the Taku River Tlingit First Nation for fostering a respectful and inclusive open dialogue every step of the way. I also want to thank all our shareholders for their patience and confidence.'
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TRTFN's Spokesperson, Charmaine Thom, says, 'Canagold's land acknowledgement of Taku River Tlingit First Nation's traditional territory and the willingness to work toward a partnership through a Consent Based Agreement, is a true testament of what reconciliation looks like.'
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However, the Feasibility Study does not include any revenue contribution from antimony or estimate an antimony reserve. This is because the process flowsheet outlined in the Feasibility Study is specifically designed to produce a sulphide concentrate.
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Antimony has been recognized at New Polaris since the early mining operations of the 1940s and 1950s. However, its economic significance has grown substantially in recent years due to global supply shortages and sharply rising prices.
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The Company is currently undertaking additional metallurgical testing and economic evaluations required to support the inclusion of antimony in the project's financial model.
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The prospect of including revenue from antimony in future phases, has the potential to improve overall project economics, particularly as the associated mining costs for antimony are largely covered by the gold mining activities. However, there are no guarantees that the future testing will support this prospect.
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Plans for Unlocking Antimony Value
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To capitalize on the full economic potential of antimony, the Company is advancing several key initiatives:
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New Polaris Feasibility Study
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The Feasibility Study for New Polaris was completed by Ausenco Engineering Canada ULC ('Ausenco'), supported by Moose Mountain Technical Services and JDS Energy & Mining Inc. The study confirms robust economics for an underground mining and milling operation, with a low initial capital cost and a high rate of return.
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Key Feasibility Study parameters are shown in Table 2.
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Table 2: New Polaris FS Project Parameters
Base Case Economic Assumptions
Gold Price (US$/oz)
$2,500
Exchange Rate (C$/US$)
0.725
Discount Rate
5%
Contained Metals Mined
Contained Gold (koz)
904
Contained Antimony (tonnes)
5173
Mining
Mine Life (years)
8.3
Waste (Mt)
1.8
Total Material Mined (Mt)
4.6
Total Mineralized Material Mined (Mt)
2.8
Processing
Processing Throughput (ktpa)
340
Average Diluted Gold Grade (g/t)
9.9
Gold Production
Gold Recovery (%)
89.1
LOM Recovered Gold in Concentrate (xoz)
806
LOM Payable Gold Production (koz)
709
LOM Avg. Annual Gold Production (koz)
85.7
Operating Costs Per Tonne
Mining Cost ($/t Milled)
$135
Processing Cost ($/t Milled)
$64
G&A Cost (C$/t Milled)
$68
Total Operating Costs ($/t Milled)
$267
Other Costs
Concentrate Transportation to Smelter ($/wmt)
$1,089
Cash Costs and All-in Sustaining Costs
LOM Cash Cost (US$/oz Au)
$997
LOM All-in Sustaining Cost (US$/oz Au)
$1,247
Capital Expenditures
Pre-production Capital Expenditures ($M)
$250
Sustaining Capital Expenditures ($M)
$225
Closure Expenditures ($M)
$21
Economics
After-Tax NPV (5%) ($M)
$425
After-Tax IRR %
30.9
After-Tax Payback Period (years)
2.4
After-Tax NPV / Initial Capex
1.7
Pre-Tax NPV (5%) ($M)
$667
Pre-Tax IRR %
38.4
Pre-Tax Payback Period (years)
2.3
Pre-Tax NPV / Initial Capex
2.7
LOM After-tax Free Cash Flow ($M)
649
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Cash costs are inclusive of mining costs, processing costs, site G&A, off-site charges and royalties
AISC includes total cash cost, sustaining CAPEX and closure cost
All dollar ($) figures are presented in CAD unless otherwise stated. Base case metal price used in this economic analysis is US$2,500 /oz Au.
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Gold Production Profile
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Mineral Resource Estimate
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The Company's current Mineral Resource Estimate ('MRE'), completed by Moose Mountain Technical Services, has an effective date of April 2, 2025 with the mineralization model as the basis for the FS. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability at this time.
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The New Polaris Mineral Resources for gold and antimony are shown in Table 3 and Table 4.
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Table 3. New Polaris April 2, 2025 Gold Resource Estimate at 4 g/t cut-off
Resource Class
Tonnes (000's)
Au (g/t)
Au Metal Ozs (000's)
Indicated
2,965
11.6
1,107
Inferred
926
8.5
266
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Table 4. Antimony Resource Estimate within the Base Case Au Resource
Resource Class
Tonnes (000's)
Sb (%)
Sb Metal (Tonnes)
Indicated
860
0.65
5,630
Inferred
100
1.2
1,195
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Notes on the Resource Tables
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About the Mineral Resource Estimate
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Mineral Reserve Estimate
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The mineral reserves are summarized in Table 5.
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Notes on the Reserve Table
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Mining Overview
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The New Polaris mine is designed as a modern, fully-mechanized underground operation, targeting the safe and cost-effective extraction of mineral reserves over an estimated 8.3 year mine life. The plan anticipates delivering approximately 2.8 million tonnes (Mt) of mill feed at an average grade of 9.9 g/t gold.
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A total of 1.8 Mt of waste rock will be generated during LOM underground development. Of this, the majority will be used as backfill material within the mine to support mined-out areas, with the remaining volume placed on surface in the integrated tailings and waste rock storage facility.
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The mineral reserves are located beneath the historic workings of the Polaris-Taku mine, which operated from 1938 to 1951 and produced 740,000 tonnes at an average grade of 10.3 g/t gold. The new underground access will be established via a ramp extending from the existing New Polaris portal, reaching an ultimate depth of approximately 780 meters. The primary ore body, known as the 'C' zone, accounts for nearly 90% of total reserves, extends up to 500 meters along strike, and dips at an average angle of 50 to 60 degrees.
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Geotechnical assessments indicate favorable rock conditions, with typical ground control measures and associated costs anticipated.
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To optimize recovery and minimize costs, two main mining methods will be employed:
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Mine development and early construction activities will be carried out by an experienced underground mining contractor, with operations transitioning to an owner-operated model upon commencement of production. The underground mine is expected to employ approximately 190 personnel, sustaining an average production rate of 950 tpd throughout the mine's operating life.
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New Polaris Mine Image
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Processing Overview
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Processing will occur in a 1000 tpd crushing, grinding and flotation plant to produce a bulk sulphide flotation concentrate which will be shipped off site for final processing at an independent processing facility.
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Crushed ore is ground to 80% minus 74um and fed into a flotation circuit consisting of one stage of rougher flotation with two cleaning stages to produce concentrate grading > 100 g/t Au.
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Flotation concentrate is thickened, filtered and dried, to a moisture of approximately 5% and flown to Juneau, Alaska, which is located approximately 60 km from site, then barged to Seattle for loading onto ocean going ships for transportation to third-party smelters worldwide.
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A portion of the process tailings will be fed to a backfill plant and used for filling underground mining voids, the balance will be filtered and trucked to a dry-stack storage facility located about 1 km from the plant site. Waste rock not used for underground backfilling will also be trucked to this facility for storage with the tailings.
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Concentrate Marketing Study
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An independent concentrate marketing study for the New Polaris Project, evaluating marketability and treatment terms for its gold concentrate has been completed as part of the FS. The study confirms that the New Polaris gold concentrate, targeted at a grade exceeding 100 g/t Au, and an average 12% As, is marketable under current global conditions.
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The report identifies potential outlets for the sale of New Polaris gold concentrate, including:
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Traditional gold roasters in Asia, which represent an established and high-capacity processing route
Blending facilities, where the concentrate can be mixed with other materials prior to shipment to smelters
Asian gold roasters, copper smelters, or lead smelters
Direct sales to international metal trading firms, which offer flexible and liquid off-take arrangements
Pressure oxidation (POX) plants
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Based on indicative commercial terms provided by several prospective buyers, the marketing study validated the project's financial modeling assumptions related to treatment charges and gold payability. The analysis concluded that an average net smelter return (NSR) of 87.9% for gold is reasonable over the LOM and reflects treatment charges associated with the presence of As in the concentrate.
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Capital Costs
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The initial capital cost is estimated at $250M (US$181M) and shown in Table 6.
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Table 6: Project Capital Cost Estimates ($M):
Initial
Sustaining
LOM Total
Mining ($M)
$63.3
$196.1
$259.4
Processing ($M)
$43.0
–
$43.0
Tailings ($M)
$7.4
$4.7
$12.1
Onsite Infrastructure ($M)
$38.5
–
$38.5
Offsite Infrastructure ($M)
$9.4
–
$9.4
Indirects ($M)
$42.3
–
$42.3
Project Delivery ($M)
$9.8
–
$9.8
Owner's Costs ($M)
$7.8
–
$7.8
Total excluding Contingency ($M)
$221.5
$200.8
$422.3
Project Contingency ($M)
$28.8
$24.2
$53.0
Closure ($M)
–
–
$20.5
Total ($M)
$250.4
$225.0
$495.8
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Note: Totals may differ slightly due to rounding
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The LOM Total Cash Cost is US$997/oz Au payable while the LOM AISC is US$1,247/oz Au payable.
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Unit Operating costs are shown in Table 7.
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Financial Analysis
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At a US$2,500 base case gold price and a C$:US$ exchange of 0.725:1, the Project generates an after-tax NPV (5%) of $425 million and IRR of 30.9%. Payback on initial capital is 2.4 years.
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The Project Financials are shown in Table 8.
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Regulatory and Environmental Assessment Process
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The Project is subject to a range of regulatory approvals, including a consent decision from the Taku River Tlingit First Nation (TRTFN) and an Environmental Assessment Certificate (EAC) under British Columbia's Environmental Assessment Act. Once the environmental assessment process is completed, the necessary construction and operating permits may be applied for and issued in accordance with applicable provincial and federal legislation.
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The project formally entered the BC Environmental Assessment (EA) process in 2023. In September 2024, the British Columbia Environmental Assessment Office (BCEAO) issued a Readiness Decision, concluding there is sufficient information to proceed with the Environmental Assessment Application. Canagold's consulting team is currently preparing the required technical studies and supporting documentation, with the EA application targeted for submission in the fourth quarter of 2025.
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The ongoing involvement, input, and support of the TRTFN have been instrumental in ensuring that their interests are recognized and addressed throughout the process. Their collaboration continues to play a critical role in helping advance and streamline the regulatory review.
The New Polaris Project is located within the territory of the Taku River Tlingit First Nation (TRTFN).
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Canagold has maintained a long-standing and respectful relationship with the TRTFN, having operated within their traditional territory since 1990. Over the years, the Company has built a strong foundation of collaboration and trust with the Nation. A formal engagement framework is in place, guiding communication, consultation, and permitting activities in alignment with TRTFN values and governance structures.
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In February 2023, Canagold and the TRTFN established a Technical Working Group (TWG) to facilitate focused collaboration on the New Polaris Project. Bi-weekly meetings have been held consistently, allowing for in-depth discussions on all aspects of the project. In addition, several open houses and community engagement sessions have been conducted to ensure transparent and inclusive dialogue with TRTFN citizens.
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Canagold remains firmly committed to continuing meaningful engagement with Indigenous communities, both in Canada and Alaska, as the project progresses.
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Opportunities to Enhance Project Value and Reduce Carbon Footprint
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The 2025 FS clearly demonstrates that New Polaris is an economically viable project.
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Several key opportunities have the potential to significantly increase the economic value of the New Polaris Project while simultaneously reducing its environmental impact:
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Antimony Recovery Optimization: Ongoing metallurgical test work aims to optimize flotation and refining conditions for antimony. Successful antimony recovery and processing could unlock substantial additional revenue
Renewable Energy Integration: An engineering study is underway to assess the feasibility of constructing a run-of-river hydroelectric facility on-site. This project could replace a significant portion of diesel-generated power, leading to a major reduction in CO₂ emissions and a corresponding decrease in energy costs—ultimately contributing to lower operating expenses
Resource Expansion Potential: The mesothermal gold deposit remains open at depth and along strike, offering potential for resource expansion beyond the current 8.3-year mine life outlined in the Feasibility Study. In addition, 2024 drilling north of the historic mining area intersected multiple mineralized veins, further supporting the opportunity to increase the defined resource base
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Qualified Persons
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In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Garry Biles, P. Eng., President & COO is the Qualified Person for the Company and has prepared, validated, and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting activities on its projects.
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Sue Bird,
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M Sc., P.Eng.,
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V.P. of Resources and Engineering at Moose Mountain Technical Services, an independent Qualified Person as defined by NI 43-101. Sue has also reviewed and approved the technical information about the 2025 MRE resource contained in this news release.
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Tommaso Roberto Raponi, P. Eng.,
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Principal Metallurgist with Ausenco Engineering Canada ULC., is an independent Qualified Person as defined by NI 43-101 and has reviewed and verified the contents of this news release. Mr. Raponi is responsible for mineral processing and metallurgical testing in the technical report.
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Kevin Murray, P. Eng.,
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Principal Process Engineer for Ausenco Engineering Canada ULC., is an independent Qualified Person as defined by NI 43-101 and has reviewed and verified the contents of this news release. Mr. Murray is responsible for processing, process and infrastructure capital and operating cost estimation, financial analysis and marketing in the technical report.
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James Millard, P. Geo.,
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Director, Strategic Projects with Ausenco Sustainability ULC., a wholly owned subsidiary of Ausenco Engineering Canada ('Ausenco') is an independent Qualified Person as defined by NI 43-101 and has reviewed and verified the contents of this news release. Mr. Millard is responsible for the sections and subsections related to environmental, permitting, and social and community aspects in the technical report.
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Jonathan Cooper, MSc., P.Eng
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.,
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Water Resources Engineer with Ausenco Sustainability ULC., a wholly owned subsidiary of Ausenco Engineering Canada ('Ausenco') is an independent Qualified Person as defined by NI 43-101 and has reviewed and verified the contents of this news release. Mr. Cooper is responsible for the sections and subsections related to site-wide water management in the technical report.
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Dino Pilotto, P. Eng.,
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General Manager, Technical Services with JDS Energy & Mining Inc., is an independent Qualified Person as defined by NI 43-101 and has reviewed and verified the contents of this news release. Mr. Pilotto is responsible for mining methods in the technical report.
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Mike Levy, P. Eng.,
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Geotechnical Manager with JDS Energy & Mining Inc., is an independent Qualified Person as defined by NI 43-101 and has reviewed and verified the contents of this news release. Mr. Levy is responsible for the underground geotechnical assessment in the technical report.
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About Canagold
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Canagold Resources Ltd. is an advanced development company dedicated to advancing the New Polaris Project through feasibility, permitting, and production stages. Additionally, Canagold aims to expand its asset base by acquiring advanced projects, positioning itself as a leading project developer. With a team of technical experts, the Company is poised to unlock substantial value for its shareholders.
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Contacts
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Catalin Kilofliski,
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