Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported that independent laboratory Overburden Drilling Management Limited (ODM) identified visible gold grains in 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, which demonstrate repeated downhole recovery of visible gold grains, are significant for advancing the project's geological understanding but do not establish grade continuity or economic viability.
ODM identified a total of 190 visible gold grains, with 156 grains (82.1%) reshaped, indicating transport and alluvial reworking. The gold population is predominantly fine, with 87.4% of grains measuring 100 micrometres or less, yet a small number of larger grains account for a disproportionate share of the calculated visible-gold mass. Five grains larger than 150 µm represent approximately 44.1% of the calculated mass, illustrating a pronounced coarse-particle tail and material nugget-effect risk. This distribution poses challenges for sampling and recovery, as both fine and coarse gold must be adequately captured to obtain representative grades.
These results support the transition from discovery-phase exploration to a more rigorous evaluation phase. Canary is planning an intermediate quantitative test program involving approximately 40 selected one-metre RC samples, each expected to weigh about 25 kilograms. The program will include controlled gravity concentration, analysis of gravity product and tails, and mass-balance, volume, and density controls. This work aims to provide more representative data on gold recovery and to inform the design of a potential sonic drilling campaign. 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 in milligrams per cubic metre (mg/m³), preserving both fine and coarse gold fractions.
The broader exploration program has established a substantial body of geological evidence supporting a paleochannel interpretation at the Jaci Paraná target. The conceptual target spans approximately 6,700 hectares with overburden thickness of 15 to 25 metres and prospective alluvial packages up to 10 to 30 metres thick. However, individual RC holes sample a very small volume relative to the target, and the ODM results come from a single hole. Therefore, these results are not representative of the entire target and do not establish grade continuity.
Mark Tommasi, President of Canary Gold, emphasized the significance of the repeated recovery of visible gold grains rather than any single calculated concentrate value. "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," he said. "Our next phase is designed to generate representative and auditable volumetric data."
The Company's decision-gated technical pathway includes whole-sample RC validation testwork, focused sonic drilling, and representative recovered gold per unit volume. Only if representative sampling produces sufficiently encouraging and reproducible data would Canary consider a larger sonic drilling campaign potentially exceeding 15,000 metres for resource delineation. This cautious approach is designed to manage risks associated with the nugget effect and the need for robust QA/QC protocols.
Approximately 50 additional samples are currently being processed by ODM, and further SGS batches are pending. The proposed whole-sample testwork is expected to take three to four weeks following laboratory receipt, and results will inform the location and configuration of initial sonic grids. The Company will provide updates as material results are received.
The scientific and technical information in this release has been reviewed and approved by Andrew Lee Smith, P.Geo., a Qualified Person as defined by National Instrument 43-101. Mr. Smith serves as Executive Chairman of Canary Gold and is not independent of the Company.
