Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported that independent laboratory Overburden Drilling Management Limited (ODM) identified visible gold grains in laboratory-prepared gravity concentrates from 29 of 30 consecutive one-metre reverse-circulation (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 within the approximately 6,700-hectare conceptual paleochannel target but do not establish representative grade or grade continuity beyond the sampled hole.
ODM identified 190 visible gold grains in total, with 156 grains (82.1%) reshaped, consistent with transport and alluvial reworking. The visible-gold population is fine by particle count: 166 grains (87.4%) measured 100 micrometres (µm) or less, but only five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass reported for the concentrate. This illustrates a pronounced coarse-particle tail and material nugget-effect risk, which is critical for designing appropriate sampling and processing protocols.
“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,” said Mark Tommasi, President of Canary Gold. “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.”
Canary 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. The company is planning an intermediate quantitative test program comprising approximately 40 selected one-metre RC samples, each expected to weigh approximately 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 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. Gold particles have been observed in concentrated material from multiple drill locations, but individual RC holes sample a very small volume relative to the conceptual paleochannel target.
“Our next phase is designed to generate representative and auditable volumetric data,” added Tommasi. “We plan to test complete submitted RC sample material, quantify gravity recovery and losses and then evaluate focused sonic sampling. A major resource delineation program would only be considered if that work produces sufficiently encouraging and reproducible results.”
The ODM observations are geologically meaningful but semi-quantitative. Reported 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 company is developing enhanced QA/QC protocols for the sonic program, including documented wet and dry weights, interval recovery, volume, density, feed and product masses, duplicates, blanks, standards where appropriate, chain of custody and recovery by particle-size fraction.
The scientific and technical information contained 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 of Canary Gold Corp.
