Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) announced 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 drill hole RC-0032 at the Jaci Paraná target within the Madeira River Project in Rondônia, Brazil. The results provide additional vertical information at a single location but do not establish head grades or grade continuity beyond the sampled hole.
The ODM analysis identified 190 visible gold grains, with 82.1% reshaped, indicating transport and alluvial reworking. The population is dominated by fine gold: 87.4% of grains are 100 micrometres or less. However, only five grains larger than 150 µm accounted for roughly 44.1% of the calculated visible-gold mass in the concentrate, illustrating a pronounced coarse-particle tail and material nugget-effect risk.
“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 planning a two-phase evaluation program. First, approximately 40 selected one-metre RC samples, each weighing about 25 kilograms, will undergo controlled gravity concentration, with analysis of the gravity product and tails, along with mass-balance, volume, and density controls. Second, subject to results, the company is evaluating focused sonic drilling, with potential rig availability in September 2026. Sonic drilling would preserve fine and coarse gold and allow assessment of recovered volumetric gold grades in milligrams per cubic metre (mg/m³).
“Our next phase is designed to generate representative and auditable volumetric data,” Tommasi added. “We plan to test complete submitted RC sample material, quantify gravity recovery and losses and then evaluate focused sonic sampling. A major resource delineation program would only be considered if that work produces sufficiently encouraging and reproducible results.”
The broader exploration program has established a substantial body of geological evidence supporting a broad paleochannel interpretation at Jaci Paraná, covering approximately 6,700 hectares beneath 15 to 25 metres of overburden. 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.
“The current exploration database includes 45 RC holes totalling 2,851 metres, 14 PQ holes totalling approximately 902 metres, and 63 screw auger holes totalling approximately 1,297 metres,” the company reported. Gold particles have been observed in concentrated material from multiple drill locations, but individual RC holes sample a very small volume relative to the conceptual target.
The company emphasized that the ODM results are semi-quantitative and not head grades. “ODM measured process weights and visible gold grains and then calculated visible-gold values in a heavy-mineral concentrate using an assumed nonmagnetic concentrate mass equivalent to 0.4% of table feed. The reported ppb values refer to calculated visible gold in that concentrate. They are not total gold in the full RC sample, are not head grades, do not establish metallurgical recovery and should not be used to estimate mineral resources or economic value.”
Canary’s decision-gated pathway requires that only if representative sampling produces sufficiently encouraging and reproducible grade, recovery, continuity, density, and volume data would a larger sonic drilling campaign be considered, potentially exceeding 15,000 metres. The company anticipates about three to four weeks for the whole-sample testwork following laboratory receipt, with results informing sonic grid locations.
Approximately 50 additional samples are currently being processed by ODM, and further SGS batches are pending. The company will provide updates as material results are received. Qualified Person Andrew Lee Smith, P.Geo., has reviewed and approved the technical disclosure.
