Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) reported 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 drill hole RC-0032 at the Jaci Paraná target within the Madeira River Project in Rondônia, Brazil. The results, which demonstrate repeated downhole recovery of visible gold, mark a transition from discovery to technical evaluation as the company moves toward representative whole-sample testwork and focused sonic sampling.
ODM identified a total of 190 visible gold grains in the 30 samples, with 156 grains (82.1%) reshaped, indicating transport and alluvial reworking within an auriferous sedimentary system. The grain population is dominated by fine particles, with 87.4% measuring 100 micrometres or less, and a median maximum grain length of 50 micrometres. However, only five grains larger than 150 micrometres accounted for approximately 44.1% of the calculated visible-gold mass, highlighting a pronounced coarse-particle tail and material nugget-effect risk.
“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 substantial body of geological evidence supporting a broad paleochannel interpretation at Jaci Paraná, with a conceptual target area of approximately 6,700 hectares beneath 15 to 25 metres of overburden. The current 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 program of approximately 5,050 metres.
Canary is now planning a staged technical evaluation program. The first phase comprises approximately 40 selected one-metre RC samples, each expected to weigh approximately 25 kilograms, for quantitative metallurgical screening. This work would include controlled gravity concentration, analysis of the gravity product and tails, and mass-balance, volume, and density controls. The second phase involves focused sonic drilling, with potential rig availability beginning in September 2026, to assess representative recovered volumetric gold grades in milligrams per cubic metre (mg/m³) while preserving both fine and coarse gold.
The proposed sonic program would use close-spaced grids across selected priority areas, with each grid potentially involving approximately 800 metres of drilling. 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 ODM observations are semi-quantitative and do not represent head grades or metallurgical recovery results. The reported calculated ppb values relate to visible gold in a heavy-mineral concentrate and are based partly on an assumed concentrate mass. The company emphasized that these results are geologically meaningful but should not be used to estimate mineral resources or economic value.
Canary is developing enhanced QA/QC protocols for the sonic program, including documented weights, volume, density, and mass-balance controls, and will review final procedures with its Qualified Person. The scientific and technical information in this release has been reviewed and approved by Andrew Lee Smith, P.Geo., who serves as Executive Chairman and is not independent under NI 43-101.
The company intends to use the discovery-stage results to refine the geological model and prioritize sampling areas. Approximately 50 additional samples are currently being processed by ODM, and further SGS batches are pending. The proposed whole-sample testwork is expected to require approximately three to four weeks following laboratory receipt, with results informing the location and configuration of initial sonic grids.
