Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported that Overburden Drilling Management Limited (ODM) identified visible gold grains in laboratory-prepared gravity concentrates from 29 of 30 consecutive one-metre reverse-circulation (RC) samples collected from RC-0032 at the Jaci Paraná target within the Madeira River Project in Rondônia, Brazil. The results independently demonstrate repeated downhole recovery of visible gold grains, but do not represent head grades or establish grade continuity beyond the sampled hole.
ODM identified 190 visible gold grains in total, of which 156 grains (82.1%) were reshaped, consistent with transport, abrasion, and alluvial reworking within an auriferous sedimentary system. The visible-gold population is fine by particle count: 166 grains (87.4%) measured 100 micrometres (µm) or less. However, only five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass reported for the concentrate, illustrating a pronounced coarse-particle tail and material nugget-effect risk.
The ODM observations are geologically meaningful but semi-quantitative. Reported calculated ppb values relate to visible gold in a heavy-mineral concentrate and are based partly on an assumed concentrate mass. They are not sample head grades, metallurgical recovery results, or mineral resource estimates.
Canary’s exploration emphasis is transitioning from discovery toward technical evaluation. The immediate objective is to determine whether representative sampling can produce reproducible volumetric-grade and recovery information sufficient to justify further evaluation. The RC-0032 results provide additional vertical information at one location within the approximately 6,700-hectare conceptual paleochannel target, but do not yet establish representative grade or grade continuity.
Canary is planning an intermediate quantitative test program comprising approximately 40 selected one-metre RC samples expected to weigh approximately 25 kilograms each. The proposed work would include controlled gravity concentration, analysis of the gravity product and tails, and mass-balance, volume, and density controls, subject to final laboratory scope and Qualified Person review.
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, expressed in milligrams per cubic metre (mg/m³), while preserving both fine gold and the important coarser-gold fraction.
“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. Our next phase is designed to generate representative and auditable volumetric data.”
ODM Batch 4028 comprised 30 consecutive one-metre RC samples, numbered 3075 to 3104, collected from RC-0032 and consisting of sand and sand-plus-gravel material. Visible gold grains were recovered from gravity concentrates prepared from 29 of the 30 samples, with a total of 190 grains identified. Samples 3075 to 3080 contained 101 of the 190 grains, while samples 3086 and 3087 form a second interval of interest. Sample 3087 contained six of the ten pristine grains identified in the batch, potentially indicating local variation in sediment source or transport history. Sample 3084 (36 m–37 m) was the only sample without identified visible gold.
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 drilling and auger program of approximately 5,050 metres. Drilling has intersected repeated intervals of rounded to subrounded granules, pebbles, gravels, and coarse sands across the target area, consistent with the interpreted alluvial architecture.
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 Company will provide further updates as material results are received and the sonic sampling program is finalized.
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