Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) announced that independent laboratory Overburden Drilling Management Limited (ODM) identified visible gold grains in 29 of 30 consecutive one-metre reverse-circulation (RC) samples from drill hole RC-0032 at the Jaci Paraná target, part of the Madeira River Project in Rondônia, Brazil. The results demonstrate repeated downhole recovery of visible gold grains but do not establish head grades or grade continuity beyond the sampled hole, the company stated.
ODM reported 190 visible gold grains in total, with 156 grains (82.1%) reshaped, indicating transport and alluvial reworking. The grain population is predominantly fine: 87.4% measure 100 micrometres or less, but only five grains larger than 150 µm account for approximately 44.1% of the calculated visible-gold mass, illustrating a pronounced coarse-particle tail and material nugget-effect risk. The observations are semi-quantitative, based on an assumed concentrate mass, and are not head grades, metallurgical recovery results, or mineral resource estimates.
“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.”
The company is transitioning from discovery to technical evaluation, planning a staged program to generate representative and auditable volumetric data. The next phase involves approximately 40 selected one-metre RC samples, each weighing about 25 kilograms, for quantitative metallurgical screening, including controlled gravity concentration, analysis of gravity product and tails, and mass-balance, volume, and density controls. This work is designed to assess gold recovery and losses, and inform selection of priority intervals for sonic sampling.
Canary has received an indication of potential sonic-drill availability in September 2026 and is evaluating contracting, site access, permitting, and program design. Focused sonic sampling would assess representative recovered volumetric gold grades in milligrams per cubic metre (mg/m³), preserving fine and coarse gold fractions. 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 program of approximately 5,050 metres. Drilling has intersected repeated intervals of rounded to subrounded granules, pebbles, gravels, and coarse sands consistent with an interpreted alluvial architecture across a conceptual paleochannel target of approximately 6,700 hectares.
The ODM results are geologically meaningful but semi-quantitative, and the company emphasizes the critical technical boundary: calculated ppb values relate to visible gold in a heavy-mineral concentrate, not total gold in the full RC sample. The company is developing enhanced QA/QC protocols, including documented weights, volumes, densities, duplicates, blanks, and standards, to be reviewed by the Qualified Person before implementation.
Andrew Lee Smith, P.Geo., the Qualified Person under National Instrument 43-101, has reviewed and approved the technical information in this release. He is not independent of the company as he serves as Executive Chairman.
