Initial Results from Phase 3 Drilling at Tartan Mine Extends High-Grade Mineralization to the West 7.3 gpt Gold Over 7.0 Metres & Discovers Potential New Zone

Toronto, Ontario – October 16, 2024 – Canadian Gold Corp. (TSXV: CGC) (“Canadian Gold” or the “Company”) is pleased to announce initial results from its Phase 3 Drill Program at the Tartan Mine, located near Flin Flon, Manitoba. Results in this news release have 1) Extended the high-grade mineralization along the western limits of the Main Zone (MZ) and 2) Discovered a potential parallel zone, located 100 metres south of the MZ (Fig. 2).  In addition, the Company is starting work to prepare its full data set of the over 21,000 metres of drilling that the Company will have completed since the Company’s last NI 43-101 resource estimate in 2017. This initial work will allow the Company to advance quickly when it decides to update the 43-101 resource estimate upon the completion of the Phase 3 Drill Program.

Phase 3 Drilling Update

1) Main Zone – Extending the Western Limits

The first objective of the Phase 3 Drill Program was to target the western limit of the Hanging Wall Zone (HWZ). Drilling below and west of TLMZ21-12 and TLMZ21-12W4 that returned 47.6 gpt gold over 5.8 metres and 20.6 gpt gold over5.7 metres, intersected 7.3 gpt gold over 7.0 metres, including 12.0 gpt gold over 3.0 metres in drill hole TLSZ24-29W2, extending the zone 27 metres west and down plunge (Fig. 1). Follow-up drilling to further extend this intercept to the west is ongoing with assays pending.

2) Potential New Zone Discovered

Testing the MZ at depth from the South, which had not previously been attempted, has resulted in the discovery of a potential new zone that returned 6.0 gpt gold over 3.0 metres including 15.9 gpt gold over 1.0 metres (Fig. 2). This new zone was intersected 475 metres below surface and is situated approximately 100 metres south and parallel to the MZ. The discovery is open in all directions and furthers the Company’s objective of increasing Tartan’s total ounces per vertical metre. This is an important objective as it allows the Company to spread development costs over more ounces, bringing down the potential cost of production.  Additional drilling targeting this zone has just been completed and assays pending.

Advancing on an Updated Resource Estimate & PEA

Looking to Improve Financial Returns & Sustainability

The Company is currently preparing its data set in anticipation of updating its mineral resource estimate and a new Preliminary Economic Assessment (“PEA”) study, which would be focused on minimizing the initial capital and time required to restart the Tartan Mine. An updated resource estimate and PEA would incorporate the results from the approximately 21,000 additional metres of drilling, which has expanded the vertical extent of the MZ resource by 72%. It will also incorporate new metallurgical test work that would look to maximize gold recoveries, while lowering technical risk, include tax holidays and financial incentives provided by the province of Manitoba and outlined in the Company’s June 5, 2023 news release and exercising the Company’s right to buyback the 2% net smelter royalty prior to production for CDN$2 million. The Tartan Mine benefits from existing surface and underground infrastructure, which is anticipated to significantly reduce capital costs and time needed to commence production. The Tartan Mine would be powered by the nearly 100% renewable energy from Manitoba Hydro. Additionally, potential for offsite toll milling alternatives would also be evaluated.

Table 1. Phase 3 Drill Assay Highlights

Table 2. Details of drill holes reported in this press release.

For Further Information, Please Contact:

Michael Swistun, CFA                                             
President & CEO
Canadian Gold Corp.
(204) 232-1373
info@canadiangoldcorp.com

Qualified Person
The scientific and technical information disclosed in this news release was reviewed and approved by Wesley Whymark, P. Geo., Consulting Geologist for the Company, and a Qualified Person as defined under National Instrument 43-101.

Technical Information
The samples collected by Canadian Gold Corp. described in this news release were transported in secure sealed bags for preparation and assay by ALS Labs in Thunder Bay, Ontario. The samples reported were crushed in their entirety to 80% passing 2 mm, with one 500 g subsample analysed for gold by photon assay. 

About Canadian Gold Corp.
Canadian Gold Corp. is a Toronto-based mineral exploration and development company whose objective is to expand the high-grade gold resource at the past producing Tartan Mine, located in Flin Flon, Manitoba. The historic Tartan Mine currently has a 2017 indicated mineral resource estimate of 240,000 oz gold (1,180,000 tonnes at 6.32 g/t gold) and an inferred estimate of 37,000 oz gold (240,000 tonnes at 4.89 g/t gold). The Company also holds a 100% interest in greenfields exploration properties in Ontario and Quebec adjacent to some of Canada’s largest gold mines and development projects, specifically, the Canadian Malartic Mine (QC), the Hemlo Mine (ON) and Hammond Reef Project (ON). The Company is 35% owned by Robert McEwen, who was the founder and CEO of Goldcorp and is Chairman and CEO of McEwen Mining.

CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release of the Company contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Canadian Gold’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.

Figure 1. Tartan Mine – Main Zone Long Section.

Figure 2. Tartan Mine – Long Section and Cross Section illustrating the new zone.