Canary Gold Corp. has reported encouraging early results from its ongoing drill program at the Madeira River Project in Brazil, supporting the identification of a potentially significant paleochannel gold system. Recent shallow drilling targeting interpreted paleochannel environments intersected continuous sand and gravel horizons ranging from approximately 1 to 3 metres in thickness at depths of 10 to 20 metres, consistent with the company's geological model for preserved auriferous fluvial systems.
Gold has been recovered from seven consecutive drill holes completed along a single drill fence extending 200 meters, demonstrating lateral continuity within the target horizon. Two of these holes returned gold grain counts over approximately 3 metre vertical intervals, with individual samples yielding in excess of 105 fine gold grains. These represent the highest gold grain counts recorded to date across the company's project area and compare favorably with internal benchmark samples. The company emphasizes that gold grain counts are not equivalent to gold grade and should not be interpreted as a measure of gold concentration or economic viability.
The identification of lithologies associated with the Mocururu Formation in multiple drill holes provides further support for the company's exploration model and targeting approach. Based on these early-stage results, the preliminary interpretation indicates a preserved paleochannel system width exceeding 200 metres has been intersected. While still at an early stage of exploration, these results indicate potential for a laterally extensive gold-bearing system, subject to additional drilling, sampling, and analysis.
This development is significant because it represents a potential breakthrough in understanding gold distribution in Brazil's Madeira River region, one of the country's most prospective yet underexplored gold provinces. The discovery of a preserved paleochannel system could indicate a different type of gold deposit than traditionally explored in the area, potentially opening new exploration models for the region. For the mining industry, successful identification of such systems could lead to more efficient exploration targeting and potentially lower discovery costs in similar geological settings worldwide.
Canary is advancing systematic follow-up drilling, including step-out holes along parallel fences, to better define the geometry, continuity, and controls on gold distribution within the system. The company is also implementing enhanced sampling and analytical protocols to support more robust quantitative evaluation. Operational capacity continues to improve, with additional equipment deployed to optimize drilling efficiency and sample recovery. A combined air-core/reverse circulation rig is expected to be mobilized in the near term, which is anticipated to accelerate drilling and expand coverage across the broader target area.
Mark Tommasi, President of Canary Gold Corp., stated that the consistency of the geology combined with gold recovered across multiple consecutive holes gives increasing confidence that the company is vectoring into a meaningful gold-bearing system. The scientific and technical information 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. Sample splits were submitted to independent analytical laboratories including Overburden Drilling Management Ltd. (ODM) Ottawa, Canada and SGS - Geosol Laboratories Ltd, Vespasiano - MG, Brazil for further analysis. Quality assurance and quality control procedures include sample splitting and the use of independent laboratories for verification.
