Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported that independent laboratory analysis 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, from Overburden Drilling Management Limited (ODM), demonstrate repeated downhole recovery of visible gold but do not represent head grades or establish grade continuity.
The ODM analysis identified 190 visible gold grains, with 82.1% reshaped, indicating transport and alluvial reworking. The population is fine by count, with 87.4% of grains measuring 100 micrometres or less, yet a pronounced coarse-particle tail exists: only five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass. This nugget effect risk underscores the need for representative sampling methods.
“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’s exploration program has established a broad paleochannel interpretation covering approximately 6,700 hectares, with overburden depths of 15 to 25 metres and alluvial packages 10 to 30 metres thick. The company is transitioning from discovery to technical evaluation, aiming to determine if representative sampling can produce reproducible volumetric-grade and recovery data.
The next phase includes whole-sample validation testwork on approximately 40 selected one-metre RC samples, each expected to weigh about 25 kilograms. This program will use controlled gravity concentration and analyze both product and tails, with mass-balance and density controls. Additionally, the company has received an indication of potential sonic-drill availability in September 2026 and is evaluating contracting and permitting for focused sonic sampling, designed to assess recovered gold per cubic metre (mg/m³) while preserving fine and coarse gold fractions.
“Our next phase is designed to generate representative and auditable volumetric data,” Tommasi added. “A major resource delineation program would only be considered if that work produces sufficiently encouraging and reproducible results.”
The decision-gated pathway requires that representative sampling yields reproducible grade, recovery, continuity, density, and volume data before considering a larger sonic campaign exceeding 15,000 metres for resource delineation. The company is also processing additional ODM samples and SGS batches to refine the geological model.
Qualified Person Andrew Lee Smith, P.Geo., Executive Chairman of Canary Gold, has reviewed and approved the technical information in this release. He is not independent under NI 43-101.
Canary Gold is focused on advancing the Madeira River Project, holding an option to earn up to 70% interest, and has agreements to acquire additional tenements totaling approximately 94,700 hectares. The company’s strategic land position in Rondônia State positions it in one of Brazil’s most prospective gold provinces.
