Canary Gold Corp. (CSE: BRAZ | Frankfurt: K5D) has announced encouraging results from heavy-mineral analyses conducted by Overburden Drilling Management Ltd (ODM), a Canadian laboratory specializing in heavy-mineral concentrate evaluation. The results 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 Ltd confirmed strong heavy-mineral assemblages consistent with gold-bearing alluvial and paleoplacer environments in samples from the Madeira River Project Area. The findings reinforce prior work, including visible gold recovered in panned samples from reconnaissance air-core drilling announced in April 2025. They also align with data from the sonic drilling program mobilized in June 2025 to capture continuous sediment profiles for detailed analysis. Heavy-mineral indicators support ongoing target refinement across the Company's tenements, including additional tenements added in August 2025.
Samples derived from reconnaissance surface outcrop sampling and sonic drilling were submitted to ODM Ltd for preparation and independent laboratory evaluation. ODM's report supports the project's conceptual model, stating that the iron-cemented gravel (mocururu) is clearly of the very mature, heavy-mineral-enriched placer type and 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 report notes that 'the modern gold placers of the Madeira River are presumed to be second-generation placers produced by erosion of these placer gravels along the river course and re-concentration of their thus liberated gold in favourable traps along the riverbed.'
The ODM report further describes the matrix of the prospective mocururu gravel consists of well-rounded quartz grains, indicating a long transport history and a very distal source area at a much higher elevation—presumably the Andes Mountains. This inference is supported by the lithologies of the pebbles in the coarsest sample, which includes ~20% less robust volcano-sedimentary clasts but no coarse-grained granite clasts matching the local bedrock. The sandy matrix contains 5-10% detrital ilmenite grains, indicating a placer gravel. The absence of magnetite, which is chemically less resistant than ilmenite, further indicates that the placer is very mature and may contain significant concentrations of other resistant minerals including gold.
ODM's investigation 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.
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. These findings validate our exploration model and support our view that the mocururu horizon represents a gold-endowed system worthy of systematic drill testing. Importantly, 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 ODM mineralogical data with geochemical, stratigraphic, and geophysical datasets, undertaking additional sampling via surface occurrence sampling and drilling beneath shallow cover, and advancing drill plans for high-priority mocururu targets. The Company also reported that warrants attached to the Initial Public Offering have now expired, with 12,355,617 IPO warrants exercised providing proceeds of $3,088,904.25, and 948,152 finders' warrants exercised for total proceeds of $157,545.
The scientific and technical information in this news release has been reviewed and approved by Andrew Lee Smith, P.Geo., Executive Director of Canary Gold Corp., who is a Qualified Person as defined under National Instrument 43-101. The Qualified Person has verified the data by reviewing all available geological logs, field notes, sampling documentation, heavy-mineral concentrate reports, and analytical certificates. The information relates to early-stage exploration results, and heavy-mineral analyses do not provide quantitative gold grades. Visible gold described is a qualitative field observation only and does not confirm grade or economic mineralization.
