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 RC-0032 at the Jaci Paraná target within the Madeira River Project in Rondônia, Brazil. The results provide further geological evidence for the presence of an auriferous sedimentary system and support the transition to more quantitative evaluation methods.
ODM processed the samples and identified a total of 190 visible gold grains. Of these, 156 grains (82.1%) were reshaped, indicating transport and alluvial reworking. The grain population is dominated by fine particles, with 87.4% measuring 100 micrometres or less, and the median maximum grain length is 50 µm. However, a pronounced coarse-particle tail exists: only five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass reported for the concentrate. This distribution highlights the nugget effect risk and the need for sampling methods that preserve both fine and coarse gold.
The ODM observations are semi-quantitative, based on an assumed concentrate mass, and do not represent head grades, metallurgical recovery, or mineral resource estimates. They do, however, demonstrate repeated downhole recovery of visible gold grains at RC-0032, providing additional vertical information at one location within the approximately 6,700-hectare conceptual paleochannel target.
Mark Tommasi, President of Canary Gold, stated, “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.”
Canary is planning an intermediate quantitative test program comprising approximately 40 selected one-metre RC samples, each expected to weigh about 25 kilograms. The proposed work would include controlled gravity concentration, analysis of the gravity product and tails, and mass-balance, volume, and density controls. This phase aims to provide a more quantitative estimate of gold recovered from each complete submitted sample and to inform the selection of priority intervals for sonic drilling.
Additionally, the Company 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, expressed in milligrams per cubic metre (mg/m³), while preserving both fine gold and the important coarser-gold fraction. 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 (dry diamond drilling) holes totalling approximately 902 metres, and 63 screw auger holes totalling approximately 1,297 metres, for a combined 2026 drilling and auger program of approximately 5,050 metres. Drilling has intersected repeated intervals of rounded to subrounded granules, pebbles, gravels, and coarse sands across the target area, consistent with the interpreted alluvial architecture.
The Company’s exploration emphasis is transitioning from discovery to technical evaluation. The immediate objective is to determine whether representative sampling can produce reproducible volumetric-grade and recovery information sufficient to justify further evaluation. Approximately 50 additional samples are currently being processed by ODM, and further SGS batches from RC concentrate work are pending or in progress.
The scientific and technical information in this news release has been reviewed and approved by Andrew Lee Smith, P.Geo., a Qualified Person as defined by National Instrument 43-101. Mr. Smith is not independent of the Company as he serves as Executive Chairman.
