Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported that recent deeper drilling at its Madeira River Gold Project in Rondonia State, Brazil, intersected significant vertical intervals of mature coarse sediments, supporting the interpretation of a large-scale paleochannel system associated with the Madeira River. The Company has also engaged Clara Maria Lamus Molina, an internationally recognized geologist-engineer specializing in alluvial gold evaluation, to strengthen its technical team.
The paleochannel, interpreted to extend across an area measuring approximately 7 kilometres by 5 kilometres eastward from the present-day Madeira River, includes sedimentary horizons up to 20 metres thick consisting of rounded quartz pebble gravels and sands. Deeper drilling reached vertical depths of up to 75 metres, encountering mature sedimentary horizons that the Company believes represent favorable depositional environments for gold concentration.
Ms. Molina brings over 20 years of specialized expertise in sampling, geological evaluation, and resource estimation of alluvial gold systems in compliance with NI 43-101 standards. She has experience with large-scale producing placer and alluvial operations in South America, including projects operated by Mineros S.A. in Colombia. Her engagement aims to establish robust exploration, sampling, analytical and QA/QC procedures appropriate for large-scale alluvial gold systems, with emphasis on representative sampling in particulate and coarse gold environments.
Mark Tommasi, President of Canary Gold, stated: "The engagement of a specialist alluvial gold consultant is a direct response to the technical progress we are seeing at Madeira. As our drilling continues to define what we interpret to be a large-scale paleochannel system, it is important that we build the sampling, QA/QC and geological evaluation framework correctly from the outset." He added that alluvial and paleochannel-hosted gold systems require careful attention to sample representativity, gold particle size distribution, sedimentary architecture, and depositional controls.
To date, the Company has completed approximately 21 reverse circulation drill holes on an approximate 1-kilometre spaced grid, together with 14 PQ-diameter drill holes on approximately 250-metre spaced infill sections within selected target areas. Analytical results from the current drilling program remain pending and will be reported once received, compiled, and reviewed.
The Madeira River Project covers approximately 80 kilometres of prospective tenure east of the Madeira River in an area with a long history of historic and active artisanal gold dredging operations. Current exploration activities have tested only a limited portion of the broader land package. The Company cautions investors that exploration remains at an early stage, with no mineral resource defined yet, and there is no assurance of an economic deposit.
Canary Gold is a Canadian public exploration company focused on gold projects in Brazil. It holds an option to earn up to a 70% undivided interest in the Rio Madeira Project through staged exploration expenditures and milestone payments. In August 2025, the Company expanded its position by acquiring a 100% interest in ten additional mineral tenements totaling approximately 94,700 hectares from Talisman Venture Partners Ltd.
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 NI 43-101, who serves as Executive Chairman of Canary Gold. The Company continues to advance drilling programs focused on defining the geometry and extent of interpreted paleochannel systems and identifying sedimentary environments favorable for potential gold concentration.
