Canary Gold Corp. (CSE: BRAZ | Frankfurt: K5D) announced encouraging results from heavy-mineral analyses conducted by Overburden Drilling Management Ltd (ODM), a Canadian laboratory specializing in heavy-mineral concentrate evaluation. The findings significantly strengthen the Company's geological thesis that gold-bearing sediments, eroded from the Andes Mountains, have accumulated within the Madeira River basin in Rondonia, Brazil, over extended periods, supporting the potential for sediment-hosted and paleoplacer gold systems.
ODM's report confirms strong heavy-mineral assemblages consistent with gold-bearing alluvial and paleoplacer environments in samples from the Madeira River Project Area. The results reinforce prior work, including visible gold recovered from reconnaissance air-core drilling announced in April 2025, and align with data from a sonic drilling program mobilized in June 2025. Heavy-mineral indicators also support ongoing target refinement across the Company's tenements, including additional ground added in August 2025.
According to ODM, the iron-cemented gravel, known as mocururu, is a very mature, heavy-mineral-enriched placer type. Pebble varieties indicate the gravel is sourced primarily from the Andes, a known gold-endowed region drained by the Madeira River. The report states that modern gold placers in the Madeira River are likely second-generation placers formed by erosion of these older placer gravels and reconcentration of gold in riverbed traps. The matrix of well-rounded quartz grains suggests a long transport history from a distal, high-elevation source, presumably the Andes. Pebble lithologies include coarse vein quartz, cherty sediments, and ~20% volcano-sedimentary clasts, with no coarse-grained granite clasts matching local bedrock.
The sandy matrix contains 5-10% detrital ilmenite, a heavy mineral whose high concentration indicates placer gravel. The absence of magnetite, which is less chemically resistant, further indicates a very mature placer that may contain significant concentrations of other resistant minerals, including gold. ODM identified visible gold particles in a mocururu sample from sonic drill hole SN-007 and from two outcrop mocururu samples within Canary Gold's tenements. Additionally, Canary Gold's field team identified visible gold in pan concentrates from seven samples across three air-core drill holes (AC-001, AC-003, and AC-004).
These findings support the interpretation that the Madeira River basin has acted as a long-term collector of gold-rich sediment, consistent with its historic reputation as one of Brazil's most productive alluvial gold regions. The ODM results integrate with key milestones previously reported by the Company, including visible gold recovery in April 2025, sonic drill mobilization in June 2025, and tenement expansion in August 2025. These datasets collectively support Canary's phased exploration strategy as it advances toward a major drilling program.
Mark Tommasi, President of Canary Gold, stated: "ODM's results provide independent confirmation that our reconnaissance sampling successfully identified the presence of targeted sediments hosting gold occurrences across multiple tenements. These findings validate our exploration model and support our view that the mocururu horizon represents a gold-endowed system worthy of systematic drill testing. Importantly, to date we have tested only roughly 2% of our extensive tenement package with reconnaissance drilling, underscoring the enormous scalability and district-wide potential of the project."
The Company will integrate ODM's data into its regional exploration model to refine target prioritization ahead of the upcoming tenement-wide drilling campaign. Next steps include integrating mineralogical data with geochemical, stratigraphic, and geophysical datasets; undertaking additional sampling via surface occurrence sampling and drilling beneath shallow cover; and advancing drill plans for high-priority mocururu targets.
