Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has provided an update on exploration at its Madeira River Gold Project in Rondonia State, Brazil, reporting that deeper drilling has intersected significant vertical intervals of mature coarse sediments, including gravels and sands, which the company interprets as evidence of a large-scale paleochannel system associated with the Madeira River. Based on drilling completed to date, the paleochannel is interpreted to extend across an area measuring approximately 7 kilometres by 5 kilometres, eastward from the present-day Madeira River system.
To support the technical team, the company has engaged Clara Maria Lamus Molina, an internationally recognized geologist-engineer and specialist in the evaluation and sampling of alluvial gold deposits. Ms. Molina brings over 20 years of specialized technical expertise in sampling, geological evaluation and resource estimation of alluvial gold systems in compliance with NI 43-101 standards. She has wide experience with large-scale producing placer and alluvial operations in South America, including projects operated by Mineros S.A. in Colombia. The engagement is intended to support the establishment and implementation of robust exploration, sampling, analytical and quality assurance/quality control (QA/QC) procedures appropriate for large-scale alluvial gold exploration systems, with particular emphasis on representative sampling in particulate and coarse gold environments.
The identification of the paleochannel system follows the company's previously announced geological targeting strategy and deeper drilling program, which was designed to evaluate more prospective horizons interpreted to occur stratigraphically beneath shallow, immature sand and gravel sequences. To date, the company has completed approximately 21 reverse circulation (RC) drill holes on an approximate 1-kilometre spaced grid, together with a further 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.
Deeper drilling has penetrated to vertical depths of up to 75 metres and intersected sedimentary units interpreted by the company to form part of a large-scale paleochannel system associated with the Madeira River across an area measuring approximately 7 kilometres by 5 kilometres. The paleochannel system includes mature sedimentary horizons up to 20 metres in thickness consisting of rounded quartz pebble gravels and sands hosted within a ferruginous matrix containing ilmenite and organic material (carbonized wood fragments), as well as harder indurated ferruginous horizons interpreted to represent possible remnant Mocururu.
Ms. Molina will work with Canary's technical team to review current drilling, sampling and concentrate preparation methodologies; assist in the design of representative sampling protocols for coarse gold and alluvial depositional environments; evaluate sedimentological and depositional controls on gold concentration; support refinement of QA/QC and chain-of-custody procedures aligned with industry best practices; assist with geological modelling and future resource evaluation workflows; and support the company's objective of positioning the project for a potential future NI 43-101 compliant mineral resource estimate, subject to continued exploration success and the collection of sufficient supporting technical data.
Mark Tommasi, President of Canary Gold, commented: '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.' Mr. Tommasi continued: 'Alluvial and paleochannel-hosted gold systems require careful attention to sample representativity, gold particle size distribution, sedimentary architecture and depositional controls. This engagement strengthens our technical team and supports our objective of advancing Madeira in a disciplined manner toward the standards required for future resource evaluation work.'
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 by the company have tested only a limited portion of the broader land package. Canary continues to advance drilling programs focused on defining the geometry and extent of interpreted paleochannel systems and identifying sedimentary environments considered favorable for potential gold concentration.
The company cautions investors that exploration at Madeira remains at an early stage. No mineral resource has yet been defined, and there can be no assurance that continued exploration will result in the delineation of an economic mineral deposit.
