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 results significantly 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 Canary Gold's 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. The findings align with data from a 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 package, including additional tenements added in August 2025.
ODM's report supports the project's conceptual model, noting 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. The modern gold placers of the Madeira River are presumed to be second-generation placers produced by erosion of these placer gravels. 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).
The ODM results integrate directly with previous milestones: visible gold recovered in April 2025, sonic drill mobilization in June 2025, and tenement expansion in August 2025. These datasets collectively support Canary's phased exploration strategy as it advances toward a major drilling programme across its extensive tenement holdings. Mark Tommasi, President of Canary Gold, stated that ODM's results provide independent confirmation that reconnaissance sampling successfully identified gold occurrences across multiple tenements, validating the exploration model. He noted that only about 2% of the tenement package has been tested with reconnaissance drilling, underscoring the scalability and district-wide potential.
The Company will integrate ODM's data into its regional exploration model to refine target prioritization ahead of a tenement-wide drilling campaign. Next steps include integrating mineralogical data with geochemical and geophysical datasets, undertaking additional sampling, and advancing drilling plans for high-priority mocururu targets. The Company also reported that warrants attached to the Initial Public Offering have 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 has been reviewed and approved by Andrew Lee Smith, P.Geo., Executive Director of Canary Gold Corp., a Qualified Person as defined under NI 43-101. The Qualified Person noted that heavy-mineral analyses and field observations do not provide quantitative gold grades and cannot be used to estimate mineral resources. Visible gold is a qualitative field observation only and does not confirm grade or economic mineralization. The geological models are interpretive hypotheses based on limited datasets. Further details can be found in the original release at NewMediaWire.
