Canarc Resource Corp. (CCM.TO; CRCUF.OTC) has the good fortune to own one of the highest-grade undeveloped gold deposits on the planet.

An upcoming name change to Canagold Resources and concurrent share consolidation — pending a C$8.4 million financing that will close in the coming days — are creating a tantalizing entry point that’s just days away.

Dear Fellow Investor,

High-grade gold often translates into a high-profit mine.

In a time where gold prices are hovering near all-time record levels, you can make a lot of money when the deposit you’re mining carries a lot more gold per tonne than a typical deposit.

Consider that average gold grades for an open-pit mine are just below 1 g/t and the average underground operations are around 5 g/t to 6 g/t. High-grade underground projects whether in production or development stage are scarce.

Now consider this: New Polaris, Canarc Resource Corp.’s (CCM.TO; CRCUF.OTC) flagship project, boasts average diluted gold grades in excess of 10 g/t.

This asset speaks volumes to the new wave of cost focused gold miners where the industry is shifting from “how many ounces” to “how profitable are the ounces.”

As you’ll see in a moment, that makes this gold deposit in northwestern British Columbia one of the higher-grade undeveloped gold projects in the world today.

New Name And New Focus Spells New Opportunity

Indeed, the nature of the New Polaris gold asset is a key reason why Canarc will shortly become Canagold Resources.

The name change is a nod to the company’s emphasis on developing and exploring gold assets in the uber-safe mining jurisdiction that is western Canada.

Up to this point, Canarc had focused on assets spread across North America, including several projects it currently has joint ventured in Nevada.

With the change to Canagold Resources, the company will look to sell or spin out those projects so that it can focus on its flagship asset at New Polaris. (And what an asset it is, as you’ll see in a moment.)

Note that in preparation for these changes, the soon-to-be Canagold Resources is on the verge of closing the second tranche of a two-tranche financing that will gross C$8.4 million in total.

In the next few days, it will officially become Canagold and will clean up its share structure by conducting a 5-for-1 share consolidation.

But before we home in on the opportunity this event will create for investors, let’s review why New Polaris is such a special asset.

One Of The World’s Highest-Grade Undeveloped Gold Deposits

New Polaris lies just 60 kilometers north of Juneau, Alaska, and gold was first discovered there in 1929.

It was mined from 1937 to 1942 (before World War II shut it down) and then again from 1946 to 1951. During those periods, the underground mine produced 232,000 ounces of gold from 691,000 tonnes grading 11.9 g/t.

After a few years in the mid-1950s spent processing ore from other nearby mines, the Polaris-Taku operation, as the project was called then, lay dormant for 30 years.

Canarc acquired the project in 1992 and, over the intervening decades, has drilled it with 63,000 meters of core in 244 holes.

That work has left New Polaris with a high-grade, underground resource of 586,000 indicated ounces (1.7 million tonnes of 10.8 g/t) and 485,000 inferred ounces (1.5 million tonnes of 10.2 g/t).

Just how rich are those grades?

Well, if this resource were in production today, it would be the world’s third highest-grade underground gold mine. Typically, high-grade underground mines are the lowest quartile on the cost curve, giving them a competitive advantage.

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Compelling Economics

According to a recent preliminary economic assessment of New Polaris, those high-grades would translate into remarkable profitability.

Using a $1,500 gold price, the PEA forecasts an after-tax NPV, discounted at 5%, of C$469 million and an after-tax IRR of 56%. The economics are driven by the grade and associated world class AISC of $510 per gold ounce produced.

Capital costs to ramp up operations are a modest US$111 million (C$147 million) to build a mine that would produce 80,000 ounces of gold per year in dore bars. The operation would have a mine life of 8.7 years.

That the economics of New Polaris are that good, in spite of needing to fly those dore bars to Juneau for shipping, speaks to the richness of the resources there.

And then there’s this: At its current market cap of around C$40 million, that C$469 million NPV suggests this project alone could be worth over 10 times that market cap!

We’ve got a ways to go before Canagold approaches that valuation, but even a modest move in that direction could result in a very significant increase in its share price.

A Near-Ideal Entry Point Straight Ahead

This last possibility is what makes now such an exciting time for investors to get involved in Canagold Resources.

Upon closing the C$8.4 million raise, the company will have all the money it needs to conduct the 24,000-meter infill program that it plans to start in early 2021 at New Polaris.

While that program will focus on proving up the project’s inferred resources into the indicated category, the news from this aggressive program should flow well into the fall.

More importantly, the high-grade assays the work will produce will remind the market that Canagold holds one of the world’s richer gold assets.

Since gold will likely be soaring on the back of a second wave of Covid-related stimulus at that point, this news flow should make Canagold a great lever on rising prices.

With the 5-to-1 share-price consolidation due to take effect in the next few days, you have a tailor-made opportunity to get in before the market wakes up to this story.

If you want to take advantage, you’ll want to look into Canarc Resource Corp. as soon as it becomes Canagold Resources, likely in the next day or two.

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