Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported that independent laboratory Overburden Drilling Management Limited (ODM) identified visible gold grains in 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, detailed in a press release, 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 the gravity concentrates, with 156 grains (82.1%) reshaped, indicating transport and alluvial reworking. The grain population is fine by count, with 87.4% measuring 100 micrometres or less. However, only five grains larger than 150 micrometres accounted for approximately 44.1% of the calculated visible-gold mass, highlighting a pronounced coarse-particle tail and material nugget-effect risk. This distribution underscores the need for sampling methods that preserve both fine and coarse gold.
“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.”
The company is transitioning from discovery to evaluation, with a focus on determining whether representative sampling can produce reproducible volumetric-grade and recovery information. Canary plans 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.
Additionally, Canary has 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.
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. This staged approach is intended to provide clear decision gates before committing significant capital.
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 across the target area, consistent with an interpreted alluvial architecture.
The ODM results are geologically meaningful but semi-quantitative. ODM’s calculated visible-gold values are based on an assumed nonmagnetic concentrate mass equivalent to 0.4% of table feed and are not sample head grades, metallurgical recovery results, or mineral resource estimates. The company emphasized that concentrate observations and values will not be reported as equivalent to head grades or metallurgical recovery results.
Approximately 50 additional samples are currently being processed by ODM, and further SGS batches from RC concentrate work are pending. The proposed whole-sample testwork is expected to require approximately three to four weeks following laboratory receipt, subject to confirmation of the final scope, contracting and laboratory scheduling. Results would inform the location and configuration of initial sonic grids and refine recovery protocols.
The scientific and technical information in the 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 of Canary Gold Corp.
