Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) announced that independent specialist laboratory Overburden Drilling Management Limited (ODM) identified visible gold grains in gravity concentrates from 29 of 30 consecutive one-metre RC samples collected from drill 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 but do not establish head grades or grade continuity beyond the sampled hole.
The ODM analysis identified 190 visible gold grains, with 156 grains (82.1%) reshaped, consistent with transport and alluvial reworking. The population is dominated by fine gold: 87.4% of grains are 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, highlighting a pronounced coarse-particle tail and material nugget-effect risk.
These observations are geologically meaningful but semi-quantitative. The calculated ppb values relate to visible gold in a heavy-mineral concentrate and are based partly on an assumed concentrate mass. They are not sample head grades, metallurgical recovery results, or mineral resource estimates.
The results support the Company's transition from discovery to technical evaluation. 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, subject to final laboratory scope and Qualified Person review.
Additionally, the Company 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.
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.”
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. 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 toward technical evaluation. The immediate objective is to determine whether representative sampling can produce reproducible volumetric-grade and recovery information sufficient to justify further evaluation. 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.
Approximately 50 additional samples are currently being processed by ODM, and further SGS batches are pending. The proposed whole-sample testwork is expected to require approximately three to four weeks following laboratory receipt. Results will be used to refine the geological model and identify priority intervals for sonic sampling.
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 is not independent of the Company as he serves as Executive Chairman.
