Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported encouraging early results from its ongoing drill program at its Madeira River Project in Brazil, supporting the identification of a potentially significant paleochannel gold system. The announcement, made March 24, 2026, highlights the discovery of 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, oriented perpendicular to the interpreted channel direction, demonstrating lateral continuity within the target horizon. Within this fence, holes were spaced from 25 to 50 meters. Notably, 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 favourably with internal benchmark samples. However, 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 Company's 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.
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 (AC/RC) rig is expected to be mobilized in the near term, which is anticipated to accelerate drilling and expand coverage across the broader target area.
“We consider these results a breakthrough in our exploration efforts at Madeira,” said Mark Tommasi, President of Canary Gold Corp. “The consistency of the geology, combined with gold recovered across multiple consecutive holes, gives us increasing confidence that we are vectoring into a meaningful gold-bearing system. While still early, we are highly encouraged by what we are seeing and are moving systematically to define the scale and continuity of this target.”
The scientific and technical information contained in this news release has been reviewed and approved by Andrew Lee Smith, P.Geo. (British Columbia), Executive Director of Canary Gold Corp., who is a “Qualified Person” as defined under National Instrument 43-101. The information disclosed relates to early-stage exploration results, and additional drilling and systematic sampling are required to further evaluate the significance of the geological features described.
Canary Gold Corp. is a Canadian public exploration company focused on the acquisition and advancement of gold projects in Brazil. The Company holds an option to earn up to a 70% undivided interest in the Rio Madeira Project through a series of staged exploration expenditures and milestone payments. In August 2025, Canary further expanded its regional strategy by entering into a definitive agreement to acquire a 100% interest in ten additional mineral tenements totaling approximately 94,700 hectares from Talisman Venture Partners Ltd. Together, these interests provide Canary Gold with a dominant and strategically consolidated land position in the Madeira River region of Rondônia State.
