Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported that independent laboratory Overburden Drilling Management Limited (ODM) identified visible gold grains in gravity concentrates from 29 of 30 consecutive one-metre reverse-circulation (RC) samples collected from hole RC-0032 at the Jaci Paraná target within the Madeira River Project in Rondônia, Brazil. The results provide additional vertical information at one location and support the company's transition from discovery-stage exploration to quantitative evaluation of the approximately 6,700-hectare conceptual paleochannel target.
ODM processed 30 samples from RC-0032 and recovered a total of 190 visible gold grains, with 156 grains (82.1%) reshaped, consistent with transport and alluvial reworking. The grain population is dominated by fine particles: 87.4% measured 100 micrometres or less, with a median maximum length of 50 µm. However, only five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass in the concentrate, highlighting a pronounced coarse-particle tail and nugget-effect risk. This distribution underscores the need for sampling methods that preserve both fine and coarse gold to obtain representative grades.
Mark Tommasi, President of Canary Gold, said, "The significance of the ODM results is the repeated recovery of visible gold grains through the submitted interval in RC-0032, rather than any single calculated concentrate value. The results provide additional vertical information at that location and support continued evaluation, but they are not representative head grades or metallurgical recovery results and do not establish grade continuity beyond the sampled hole. Our next phase is designed to generate representative and auditable volumetric data."
The company is planning a staged program beginning with whole-sample RC validation testwork on approximately 40 selected one-metre samples, each expected to weigh about 25 kilograms. The proposed work would include controlled gravity concentration, analysis of gravity product and tails, and mass-balance, volume, and density controls, subject to laboratory scope and Qualified Person review. This phase aims to quantify gold recovery from complete samples and inform selection of priority intervals for sonic drilling.
Canary has received an indication of potential sonic-drill availability in September 2026 and is evaluating contracting, site access, permitting, program design, and budget requirements. Focused sonic sampling would be designed to assess representative recovered volumetric gold grades in milligrams per cubic metre (mg/m³) while preserving both fine and coarse gold fractions. A larger sonic drilling campaign, potentially exceeding 15,000 metres, would only be considered if representative sampling produces sufficiently encouraging and reproducible grade, recovery, continuity, density, and volume data to justify resource delineation work.
The current exploration database includes 45 RC holes totalling 2,851 metres, 14 PQ diamond drill holes totalling approximately 902 metres, and 63 screw auger holes totalling approximately 1,297 metres, for a combined 2026 program of about 5,050 metres. Drilling has intersected repeated intervals of rounded to subrounded granules, pebbles, gravels, and coarse sands consistent with an alluvial architecture. The broad spatial distribution of drilling provides geological context, but individual holes sample a very small volume relative to the target, so the company is using the results to prioritize representative sampling areas rather than infer grade continuity.
Approximately 50 additional samples are currently being processed by ODM, and further SGS batches are pending. Canary intends to use these discovery-stage results to refine the geological model and improve sampling procedures. The proposed whole-sample testwork is expected to require three to four weeks following laboratory receipt, and results will inform the location and configuration of initial sonic grids.
The scientific and technical information in this release has been reviewed and approved by Andrew Lee Smith, P.Geo., a Qualified Person as defined by National Instrument 43-101. Mr. Smith serves as Executive Chairman of Canary Gold and is not independent of the company. Canary Gold is a Canadian exploration company focused on gold projects in Brazil, holding an option to earn up to a 70% interest in the Rio Madeira Project and an agreement to acquire 100% interest in ten additional tenements covering approximately 94,700 hectares.
