- Canagold Resources Ltd. (CCM, CRCUF) releases positive feasibility study results for the New Polaris Project.
- The project shows an after-tax NPV of $425 million and an IRR of 30.9% at a $2,500/oz gold price.
- Spot gold price scenario increases the after-tax NPV to $793 million and an IRR of 47.3%.
Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF) announced favorable feasibility study outcomes for its fully owned New Polaris gold-antimony project in British Columbia. The study presents a robust economic potential with low capital and operating costs, showcasing a high-grade underground mining prospect with low capital expenditures, estimated at $250 million.
Under a base case scenario with a gold price of USD 2,500 per ounce, the project boasts an after-tax net present value (NPV) of $425 million, an internal rate of return (IRR) of 30.9%, and a payback period of 2.4 years. At a spot price of USD 3,300 per ounce, the after-tax NPV rises to $793 million with a 47.3% IRR, reducing the payback to 1.7 years.
The life of mine (LOM) production is projected at 805,589 ounces of gold, with an all-in sustaining cost (AISC) of USD 1,247 per ounce. The project also anticipates a LOM free cash flow of $649 million at the base gold price, with a potential to increase to $1.1 billion at the spot price.
CEO Catalin Kilofliski stated the company is focusing on completing the permitting process for New Polaris, while also exploring additional revenue streams from antimony and reducing operational costs through renewable energy integration. This marks a step forward in ensuring economic viability and environmental responsibility for the project.
The feasibility study was conducted by Ausenco Engineering, with Moose Mountain Technical Services and JDS Energy & Mining Inc. supporting the initiative. The study's completion aligns with Canagold's ongoing efforts to foster a strong partnership with the Taku River Tlingit First Nation, reinforcing commitments to community engagement and sustainable development.
