VANCOUVER, BRITISH COLUMBIA - Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has 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 from hole RC-0032 at the Jaci Paraná target within the Madeira River Project in Rondônia, Brazil. The results demonstrate repeated downhole recovery of visible gold grains, but the company emphasizes they do not represent head grades or establish grade continuity.
ODM identified 190 visible gold grains in the batch, with 82.1% being reshaped, indicating transport and alluvial reworking. The gold population is fine by particle count, with 87.4% of grains measuring 100 micrometres or less. However, only five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass, illustrating a pronounced coarse-particle tail and material nugget-effect risk. The ODM observations are semi-quantitative and based on an assumed concentrate mass, not head grades or metallurgical recovery results.
The results provide additional vertical information at one location within the approximately 6,700-hectare conceptual paleochannel target. The broader exploration program supports the paleochannel interpretation but does not yet establish representative grade or continuity. Mark Tommasi, President of Canary Gold, stated, "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. 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 is planning an intermediate quantitative test program comprising approximately 40 selected one-metre RC samples, each expected to weigh approximately 25 kilograms. The proposed work would include controlled gravity concentration, analysis of the gravity product and tails, and mass-balance, volume and density controls. The company also received an indication of potential sonic-drill availability in September 2026 and is evaluating contracting, site access, permitting, program design and budget requirements. Focused sonic sampling would be designed to assess representative recovered volumetric gold grades in milligrams per cubic metre (mg/m³), preserving both fine and coarse gold fractions.
The current exploration 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. Drilling has intersected repeated intervals of rounded to subrounded granules, pebbles, gravels and coarse sands, consistent with an alluvial architecture. Gold particles have been observed in concentrated material from multiple drill locations, but the ODM batch discussed comes from a single hole.
The company's next phase is deliberately staged to test representativeness and recovery before committing to a major resource delineation campaign. The first step is whole-sample RC validation testwork, followed by focused sonic drilling and bulk sampling. Each sonic interval would be processed to assess recovered gold per controlled sample volume, with the principal reporting metric expected to be milligrams of recovered gold per cubic metre (mg/m³). Only if representative sampling produces sufficiently encouraging and reproducible grade, recovery, continuity, density and volume data would Canary consider a larger sonic drilling campaign, potentially exceeding 15,000 metres, to determine if an inferred mineral resource estimate can be prepared in accordance with National Instrument 43-101.
Approximately 50 additional samples are currently being processed by ODM, and further SGS batches are pending. The proposed whole-sample testwork is expected to take approximately three to four weeks following laboratory receipt. The company will provide further updates as material results are received.
The scientific and technical information in this news release has been reviewed and approved by Andrew Lee Smith, P.Geo., a Qualified Person as defined by National Instrument 43-101. Mr. Smith is not independent of the Company, as he serves as Executive Chairman.
