VANCOUVER, BRITISH COLUMBIA - Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported visible gold grains in laboratory-prepared gravity concentrates from 29 of 30 consecutive one-metre reverse-circulation (RC) samples collected from hole RC-0032 at the Jaci Paraná target within its Madeira River Project in Rondônia, Brazil. The results, from independent specialist laboratory Overburden Drilling Management Limited (ODM), demonstrate repeated downhole recovery of visible gold grains but do not represent head grades or establish grade continuity beyond the sampled hole.
The findings are significant because they support the transition from discovery-stage exploration to technical evaluation, focusing on whether representative sampling can produce reproducible volumetric-grade and recovery information. The company plans to conduct whole-sample testwork and focused sonic drilling to assess gold grades in milligrams per cubic metre (mg/m³), a critical step before considering a major resource delineation program.
ODM identified 190 visible gold grains in the batch, with 82.1% reshaped, consistent with transport and alluvial reworking. The grain population is fine, with 87.4% measuring 100 micrometres (µm) or less, but a few coarse grains dominate the calculated mass: five grains larger than 150 µm account for approximately 44.1% of the visible-gold mass in the concentrate. This highlights the nugget effect and the need for sampling methods that preserve both fine and coarse gold.
“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.”
The company’s exploration program has established a broad paleochannel interpretation covering approximately 6,700 hectares, with alluvial packages 10 to 30 metres thick beneath 15 to 25 metres of overburden. The 2026 program included 45 RC holes, 14 PQ diamond drill holes, and 63 auger holes, totaling approximately 5,050 metres, with gold particles observed in multiple locations.
The next phase involves a staged approach: first, approximately 40 selected one-metre RC samples (each ~25 kg) will undergo quantitative metallurgical screening with controlled gravity concentration and analysis of products and tails. Second, sonic drilling, with potential rig availability in September 2026, will be used for close-spaced grids across priority areas, each potentially involving ~800 metres. Sonic drilling is expected to improve recovery and volume control while preserving fine and coarse particles.
The principal reporting metric for sonic intervals will be milligrams of recovered gold per cubic metre (mg/m³), supported by density, moisture, and mass-balance data. Only if representative sampling produces sufficiently encouraging and reproducible results would Canary consider a larger sonic drilling campaign, potentially exceeding 15,000 metres, to support a National Instrument 43-101 mineral resource estimate.
The company emphasizes that the ODM results are semi-quantitative and based on an assumed concentrate mass, not head grades or metallurgical recovery. SGS concentrate values referenced in technical reporting also do not represent original sample grades. Enhanced QA/QC protocols are being developed for the sonic program, including documented weights, volumes, and mass-balance controls.
Approximately 50 additional samples are being processed by ODM, and further SGS batches are pending. The whole-sample testwork is expected to take three to four weeks following laboratory receipt, informing the location and configuration of sonic grids. Any decision to expand to resource delineation will be based on representative quantitative data, not visible-gold observations alone.
Andrew Lee Smith, P.Geo., a Qualified Person under NI 43-101, has reviewed and approved the technical information in this release. The company holds an option to earn up to a 70% interest in the Rio Madeira Project and has expanded its land position in the region through the acquisition of ten additional tenements totaling approximately 94,700 hectares.
The results from RC-0032 are a step forward in understanding the project’s potential, but the path to resource delineation remains conditional on the success of upcoming quantitative programs. As the company moves from discovery to evaluation, the focus is on generating auditable and representative data to support future economic assessments.
