Vancouver, British Columbia - Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) ('Canary Gold' or the 'Company') is pleased to report visible-gold-grain observations from 30 consecutive one-metre reverse-circulation ('RC') samples collected from RC-0032 at the Jaci Parana target within the Company's Madeira River Project in Rondonia, Brazil.
Overburden Drilling Management Limited ('ODM') identified visible gold grains in laboratory-prepared gravity concentrates from 29 of the 30 samples. The results demonstrate repeated downhole recovery of visible gold grains at RC-0032, but do not represent head grades or establish grade continuity beyond the sampled hole.
Highlights
Independent specialist laboratory Overburden Drilling Management Limited ('ODM') identified visible gold grains in laboratory-prepared gravity concentrates from 29 of 30 consecutive one-metre RC samples collected from RC-0032.
ODM identified 190 visible gold grains. Of these, 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 (-microm) or less. However, only five grains larger than 150 -microm 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.
The RC-0032 results provide additional vertical information at one location within the approximately 6,700-hectare conceptual paleochannel target. Results received from the broader exploration program support the paleochannel interpretation 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 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/m-3), 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.
A Large Prospective Paleochannel Moving from Discovery to Evaluation
Canary's 2026 exploration program has established a substantial body of geological evidence supporting a broad paleochannel interpretation at the Jaci Parana target within the Madeira River Project. The area currently encompassed by the Company's conceptual interpretation is approximately 6,700 hectares, beneath approximately 15 to 25 metres of overburden, with prospective alluvial sedimentary packages locally interpreted to reach approximately 10 to 30 metres in thickness. These dimensions remain conceptual and are not a mineral resource or volume estimate.
The Company's exploration emphasis is transitioning from discovery-demonstrating the presence and distribution of gold within sampled paleochannel material-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.
Near-Term Work and News Flow
Approximately 50 additional samples are currently being processed by ODM. Further SGS batches from RC concentrate work are also pending or in progress. Canary intends to use these discovery-stage results to refine the geological model, identify priority intervals and improve sampling procedures; however, concentrate observations and values will not be reported as equivalent to head grades or metallurgical recovery results.
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 be used to inform the location and configuration of initial sonic grids and to refine the recovery protocol before any field mobilization decision.
The Company will provide further updates as material results are received and the sonic sampling program is finalized. Any decision to expand to resource delineation would be based on representative quantitative data rather than visible-gold observations alone.
Quality Assurance, Quality Control and Analytical Methodology
ODM Batch 4028 comprised 30 consecutive one-metre RC samples of sand and gravel material from RC-0032 that were submitted to Overburden Drilling Management Limited ('ODM') at its laboratory in Ottawa (Nepean), Ontario, Canada. ODM recorded bulk received weights, retained an approximately 300-gram archival split, screened and processed sample material, and examined pan concentrates for visible gold and fine-grained metallic indicator minerals. Visible gold grains were counted, classified by morphology and measured. ODM's calculated visible-gold values are based in part on an assumed nonmagnetic heavy-mineral-concentrate mass equivalent to 0.4% of table feed and are therefore semi-quantitative. The ODM work was not a metallurgical recovery test.
SGS work referenced in the Company's technical reporting relates to centrifuge or heavy-mineral concentrates that reduce the original sample mass by approximately 100-fold to 200-fold. Those concentrate values do not represent the gold grade of the original bulk sample. The proposed validation program is intended to improve quantitative characterization by testing substantially larger complete submitted samples, recording sample volume and density, applying mass-balance controls and analyzing both recovered product and tails. Any SGS results used to support public geological conclusions should be disclosed with applicable sample information, methods and QA/QC.
About Canary Gold Corp.
Canary Gold Corp. is a Canadian public exploration company focused on the acquisition and advancement of gold projects in Brazil. The Company holds an option to earn up to a 70% undivided interest in the Rio Madeira Project through a series of staged exploration expenditures and milestone payments.
In August 2025, Canary further expanded its regional strategy by entering into a definitive agreement to acquire a 100% interest in ten additional mineral tenements totaling approximately 94,700 hectares from Talisman Venture Partners Ltd., a private British Columbia corporation. The total consideration of CAD $1.7 million has been satisfied through staged cash and share payments.
Talisman retains a 1.0% net smelter return (NSR) royalty on future production from the acquired tenements, one-half of which (reducing the NSR to 0.5%) may be repurchased by the Company at any time for CAD $1.0 million.
Together, these interests provide Canary Gold with a dominant and strategically consolidated land position in the Madeira River region of Rondonia State - one of Brazil's most prospective yet underexplored gold provinces.
Contact:
Mark Tommasi
Tel: (604) 318-1448
Web: www.canarygold.ca
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws, including statements regarding additional ODM and SGS work; the proposed whole-sample test program and its scope, methods, timing and objectives; potential sonic-drill availability, contracting and mobilization; site access and permitting; the design, timing and scale of possible sonic sampling and resource delineation programs; the ability of future work to generate representative volumetric-grade, recovery, continuity, density and volume information and the possible preparation of a mineral resource estimate. Forward-looking information is based on management's current expectations and assumptions, including laboratory and contractor availability, satisfactory completion of program design and Qualified Person review, access to equipment and personnel, receipt of any required permits and approvals, availability of financing, satisfactory sample recovery and analytical performance, and results that justify additional work. These assumptions may prove incorrect. Risks and uncertainties include sampling and recovery limitations associated with fine and coarse gold, the nugget effect, laboratory or contractor delays, equipment availability, access and permitting constraints, financing risk, cost escalation, failure to obtain representative or reproducible results, and the possibility that results will not support further drilling, a mineral resource estimate or an economic mining case, together with the risks described in the Company's continuous disclosure filings. Actual results and future events may differ materially from those anticipated. Readers should not place undue reliance on forward-looking information. The forward-looking information in this release is made as of its date, and the Company will update it only as required by applicable law.
(C) 2026 Electronic News Publishing, source ENP Newswire