Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) announced that independent specialist 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 hole RC-0032 at the Jaci Paraná target within the Madeira River Project in Rondônia, Brazil. The results, which are semi-quantitative and not head grades, provide additional vertical information at one location and support the transition to representative whole-sample testwork and focused sonic sampling.
The ODM analysis of Batch 4028 recovered a total of 190 visible gold grains, with 82.1% reshaped, indicating transport and alluvial reworking. The grain population is dominated by fine particles: 87.4% are 100 micrometres or less, with a median maximum length of 50 µm. However, only five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass, illustrating a pronounced coarse-particle tail and material nugget-effect risk. These observations are geologically meaningful but do not establish grade continuity beyond the sampled hole.
“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. Our next phase is designed to generate representative and auditable volumetric data.”
The company's 2026 exploration program has established a broad paleochannel interpretation covering approximately 6,700 hectares beneath 15 to 25 metres of overburden, with prospective alluvial packages up to 30 metres thick. However, these dimensions remain conceptual and are not a mineral resource or volume estimate. Canary's emphasis is transitioning from discovery to technical evaluation, with the immediate objective of determining whether representative sampling can produce reproducible volumetric-grade and recovery information.
To address the challenges of fine and coarse gold recovery, Canary is planning an intermediate quantitative test program comprising approximately 40 selected one-metre RC samples, each expected to weigh about 25 kilograms. The proposed work would include controlled gravity concentration, analysis of the gravity product and tails, and mass-balance, volume and density controls, subject to final laboratory scope and Qualified Person review. The company has also 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, expressed in milligrams per cubic metre (mg/m³), while preserving both fine gold and the important coarser-gold fraction. 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 drilling and auger program of approximately 5,050 metres. Drilling has intersected repeated intervals of rounded to subrounded granules, pebbles, gravels and coarse sands across the target area, consistent with the interpreted alluvial architecture.
Canary is developing enhanced QA/QC protocols for the sonic program, including documented wet and dry weights, interval recovery, volume, density, feed and product masses, duplicates, blanks, standards where appropriate, chain of custody and recovery by particle-size fraction. Final procedures will be reviewed by the Company's Qualified Person before implementation. 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, who is not independent of the Company as he serves as Executive Chairman.
The company expects approximately 50 additional samples to be processed by ODM, with further SGS batches pending. The proposed whole-sample testwork is expected to require three to four weeks following laboratory receipt. Any decision to expand to resource delineation would be based on representative quantitative data rather than visible-gold observations alone.
