Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported visible gold grains in laboratory-prepared 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. The independent analysis, conducted by Overburden Drilling Management Limited (ODM), identified 190 visible gold grains, with 156 grains (82.1%) reshaped, indicating transport and alluvial reworking within an auriferous sedimentary system. The results provide repeated downhole recovery of visible gold but do not represent head grades or establish grade continuity beyond the sampled hole.
The particle size distribution reveals a fine-dominated population: 166 grains (87.4%) measured 100 micrometres or less, with a median maximum grain length of 50 µm. However, only five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass in the concentrate. This pronounced coarse-particle tail presents a material nugget-effect risk, as a single 250 × 400 × 50 µm grain in sample 3087 contributed about 94% of that sample’s calculated visible-gold response. The combination of abundant fine gold and rare coarse particles necessitates sampling and processing methods that preserve fine gold while capturing the low-frequency coarse particles that can significantly influence average recovered grade.
Mark Tommasi, President of Canary Gold, emphasized the significance of the repeated recovery of visible gold grains rather than any single calculated concentrate value. “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,” he said. The company is transitioning from discovery to technical evaluation, focusing on determining whether representative sampling can produce reproducible volumetric-grade and recovery information.
Canary is planning an intermediate quantitative test program comprising approximately 40 selected one-metre RC samples, each expected to weigh about 25 kilograms. 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. Additionally, the company 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.
The exploration program at the Jaci Paraná target has established a substantial body of geological evidence supporting a broad paleochannel interpretation covering approximately 6,700 hectares, beneath 15 to 25 metres of overburden, with prospective alluvial sedimentary packages locally reaching 10 to 30 metres in thickness. The current 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. Drilling has intersected repeated intervals of rounded to subrounded granules, pebbles, gravels, and coarse sands, consistent with the interpreted alluvial architecture.
The ODM results are considered geologically meaningful but semi-quantitative, as the 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. The company’s next phase is deliberately staged to test representativeness and recovery before committing capital to a major resource delineation campaign. 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 scientific and technical information in this release has been reviewed and approved by Andrew Lee Smith, P.Geo., a Qualified Person as defined by National Instrument 43-101. Mr. Smith serves as Executive Chairman of Canary Gold Corp. and is not independent of the company.
