We are initiating coverage on Canagold Resources with a BUY rating and C$1.85/sh target price representing 421% lift from the current share price. Canagold is focused on advancing its 100%-owned New Polaris Au project in northwestern BC. New Polaris is a past-producing operation that benefits from existing infrastructure, including ten levels of underground workings. The project is well advanced, with a ~1.0M oz (I+I) high-grade resource and a positive PEA outlining robust economics. The company is aiming to materially expand this resource through approximately 30,000m of drilling followed by the commencement of a Feasibility Study. Considering Canagold’s relatively low market capitalization, we believe the market has yet to recognize New Polaris’ potential of becoming one of the world’s highest-grade Au mines once up and running.