Canary Gold Corp. (CSE: BRAZ | Frankfurt: K5D) announced encouraging results from heavy-mineral analyses completed by Overburden Drilling Management Ltd (ODM), a Canadian laboratory specializing in heavy-mineral concentrate evaluation. The findings strengthen the Company’s geological thesis that gold-bearing sediments, originating from erosion of the Andes Mountains, have accumulated within the Madeira River basin in Rondonia, Brazil, over extended periods. This supports the potential for sediment-hosted and paleoplacer gold systems across Canary’s expanding land position.
ODM confirmed strong heavy-mineral assemblages consistent with gold-bearing alluvial and paleoplacer environments in samples from the Madeira River Project Area. The results reinforce prior work, including visible gold recovered in panned samples from reconnaissance air-core drilling announced in April 2025. Findings also align with data from the sonic drilling program mobilized in June 2025 to capture continuous sediment profiles.
Samples derived from reconnaissance surface outcrop sampling and sonic drilling were submitted to ODM. The report describes the iron-cemented gravel, known as mocururu, as clearly of the very mature, heavy-mineral-enriched placer type. Its pebble varieties support the interpretation that the gravel is sourced primarily from the Andes, a known gold-endowed area that the Madeira River drains. The matrix consists of well-rounded quartz grains, indicating a long transport history from a distal source area at higher elevation, presumably the Andes. This inference is supported by pebble lithologies, which include coarse vein quartz, fine-grained cherty sediments, and about 20% less robust volcano-sedimentary clasts, with no coarse-grained granite clasts matching local bedrock.
The sandy matrix contains 5-10% detrital ilmenite grains, indicating the host gravel is a placer gravel. The absence of magnetite, chemically less resistant than ilmenite, further indicates the placer is very mature and may contain significant concentrations of other resistant minerals including gold. ODM identified visible gold particles in a mocururu sample from sonic drill hole SN-007 and from two outcrop mocururu samples within Canary Gold’s tenement holdings. Additionally, Canary Gold’s field team identified visible gold in pan concentrates of seven samples from three air-core drill holes (AC-001, AC-003, and AC-004).
These findings support the interpretation that the Madeira River basin has acted as a long-term collector of gold-rich sediment, consistent with its historic reputation as one of Brazil’s most productive alluvial gold regions. The ODM results integrate with key milestones previously reported: visible gold in April 2025, sonic drill mobilization in June 2025, and tenement expansion in August 2025. Mark Tommasi, President of Canary Gold, stated: “ODM’s results provide independent confirmation that our reconnaissance sampling successfully identified the presence of the targeted sediments hosting gold occurrences across multiple tenements... to date we have tested only roughly 2% of our extensive tenement package with reconnaissance drilling, underscoring the enormous scalability and district-wide potential of the project.”
The Company will integrate ODM’s data into its regional exploration model to refine target prioritization ahead of the upcoming tenement-wide drilling campaign. Next steps include integrating mineralogical data with geochemical, stratigraphic, and geophysical datasets; undertaking additional sampling; and advancing drilling plans for high-priority mocururu targets.
