Interview with Catalin Kilofliski, CEO of Canagold Resources Ltd.

Recording date: 29th November 2023

Led by mining veteran CEO Catalin Kilofliski, Canagold Resources is rapidly advancing its 100% owned New Polaris project in British Columbia through feasibility studies and permitting, bringing this high-grade gold asset towards a near-term production decision. With indicated resources of 1.1 million ounces grading an exceptional 11 g/t gold, New Polaris stands out as one of the highest-grade undeveloped gold projects in western Canada.

Supporting potential low-cost, highly profitable operations, these exceptional gold grades persist from surface down to 500 meters depth, ranging from 1.5 to over 20 meters in width. As Kilofliski explained, "We are fortunate that the ore is very consistent top to bottom left to right so we can always kind of mine around 11 grams per tonne." This continuity means no high-grading is required, enabling reliable modeling of costs and mine planning.

Initial studies point to annually producing 100,000 ounces of gold at all-in sustaining costs of $1,000-$1,100 per oz over a 9-10 year mine life. With gold currently trading around $1,800/oz, New Polaris could generate roughly $80-90 million in average yearly free cash flow—tremendous economics for a junior gold developer.

Importantly, Canagold also benefits from a deep-pocketed strategic investor in Sun Valley Investments, owner of two operating gold mines in Colombia. Sun Valley holds 43% of Canagold shares and is fully financing the company through feasibility and permitting work, which recently surpassed the 50% completion mark. This funding support eliminates dilution risks while providing flexibility in weighing construction financing options ahead of a production decision.

Sun Vallery's backing also enables Canagold to chart a consolidation strategy within the struggling gold junior sector, evaluating distressed assets for potential acquisitions. As Kilofliski explained, "There are still some interesting projects out there where we can bring our capital and expertise and make a difference."

Trading at just a $30 million market valuation, Canagold offers substantial upside potential as it systematically derisks New Polaris towards production. The company’s tight capital structure and fully-funded status provide a unique opportunity for investors to position ahead of construction decisions and higher gold prices. With districts-scale exploration upside and sector consolidation plans backed by a strategic investor, Canagold appears poised to create significant value at a pivotal moment in the project development timeline.
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View Canagold Resources company profile: https://www.cruxinvestor.com/companies/canagold-resources

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