Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) announced that independent 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, demonstrate repeated downhole recovery of visible gold and support the Company's transition to more representative sampling methods.
The ODM analysis of Batch 4028 found 190 visible gold grains, with 82.1% reshaped, indicating transport and alluvial reworking. While 87.4% of grains were 100 micrometres or less, a pronounced coarse-particle tail was evident: five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass. This fine-coarse dichotomy underscores the nugget effect risk and the need for sampling protocols 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.”
Canary'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 company has completed 45 RC holes, 14 PQ diamond holes, and 63 auger holes, totalling about 5,050 metres, intersecting gravels and coarse sands consistent with alluvial architecture.
To move from discovery to evaluation, Canary is planning a staged program. First, approximately 40 selected one-metre RC samples, each about 25 kilograms, will undergo whole-sample quantitative testwork, including controlled gravity concentration and analysis of products and tails, with mass-balance and density controls. Second, focused sonic drilling is being evaluated, with potential rig availability in September 2026. Sonic drilling would provide better recovery and volume control, enabling calculation of recovered gold in milligrams per cubic metre (mg/m³).
Only if representative sampling yields encouraging and reproducible results would Canary consider a larger sonic campaign potentially exceeding 15,000 metres to support resource delineation under NI 43-101. The company emphasized that current ODM values are not head grades or metallurgical recoveries, and any future resource estimate would require robust QA/QC protocols.
Andrew Lee Smith, P.Geo., Executive Chairman and Qualified Person, reviewed and approved the technical disclosure. He is not independent under NI 43-101. Canary holds an option to earn up to 70% interest in the Rio Madeira Project and has agreed to acquire additional tenements covering about 94,700 hectares, consolidating its land position in the region.
