Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported visible gold grains in gravity concentrates from 29 of 30 consecutive one-metre reverse-circulation (RC) samples collected from drill hole RC-0032 at the Jaci Paraná target within the Madeira River Project in Rondônia, Brazil. Independent laboratory Overburden Drilling Management Limited (ODM) identified 190 visible gold grains, with 82.1% reshaped, indicating alluvial transport and reworking. The results are significant because they demonstrate repeated downhole recovery of gold, but they do not establish head grades or grade continuity beyond the sampled hole.
The findings support the company's transition from discovery to technical evaluation. Canary is planning an intermediate quantitative test program involving approximately 40 selected one-metre RC samples, each weighing about 25 kilograms, to conduct controlled gravity concentration, analysis of products and tails, and mass-balance controls. Additionally, the company has received an indication of potential sonic-drill availability in September 2026 and is evaluating contracting, site access, and program design. Focused sonic sampling aims to assess representative recovered volumetric gold grades in milligrams per cubic metre (mg/m³), preserving both fine and coarse gold fractions.
The visible-gold population is predominantly fine, with 87.4% of grains measuring 100 micrometres or less, but a few larger grains contribute disproportionately to the calculated mass. This highlights the nugget effect and the need for sampling methods that capture both fine and coarse gold. The company emphasizes that the ODM results are semi-quantitative and not head grades, and they should not be used for resource estimation.
Canary's exploration program has amassed a substantial database, including 45 RC holes, 14 PQ diamond drill holes, and 63 screw auger holes, totaling approximately 5,050 metres in 2026. The interpreted paleochannel target spans about 6,700 hectares beneath 15 to 25 metres of overburden, with alluvial packages up to 30 metres thick. The next phases are designed as decision gates: whole-sample validation testwork, focused sonic drilling, and a potential resource delineation campaign exceeding 15,000 metres if results are encouraging.
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." He added that the next phase aims to generate representative and auditable volumetric data, with a major resource program only considered if results justify it.
The company plans to process additional samples at ODM and SGS, using results to refine the geological model and prioritize intervals. The proposed whole-sample testwork is expected to take three to four weeks after laboratory receipt. Any expansion to resource delineation will be based on quantitative data, not visible-gold observations alone. The scientific and technical information has been reviewed by Andrew Lee Smith, P.Geo., a Qualified Person under NI 43-101, who is Executive Chairman of the company.
