Canary Gold Corp. has reported encouraging early results from its ongoing drill program at the Madeira River Project in Brazil, supporting the identification of a potentially significant paleochannel gold system. Recent shallow drilling targeting interpreted paleochannel environments has intersected continuous sand and gravel horizons ranging from approximately 1 to 3 metres in thickness at depths of 10 to 20 metres. These results are consistent with the company's geological model for preserved auriferous fluvial systems.
Gold has been recovered from seven consecutive drill holes completed along a single drill fence, extending 200 meters, oriented perpendicular to the interpreted channel direction, demonstrating lateral continuity within the target horizon. Within this fence, holes were spaced from 25 to 50 meters. Notably two of these holes returned gold grain counts over approximately 3 metre vertical intervals, with individual samples yielding in excess of 105 fine gold grains. These represent the highest gold grain counts recorded to date across the company's project area and compare favourably with internal benchmark samples. The company emphasizes that gold grain counts are not equivalent to gold grade and should not be interpreted as a measure of gold concentration or economic viability.
In addition, the identification of lithologies associated with the Mocururu Formation in multiple drill holes provides further support for the company's exploration model and targeting approach. Based on these early-stage results, the company's preliminary interpretation indicates a preserved paleochannel system width exceeding 200 metres has been intersected. While still at an early stage of exploration, these results indicate potential for a laterally extensive gold-bearing system, subject to additional drilling, sampling, and analysis. The company has provided visual documentation of these findings, including Figure 2 - Drill sample/core from hole 28 showing sand and gravel horizons along with respective recovered gold grains from 9 to 12 meters.
Canary is advancing systematic follow-up drilling, including step-out holes along parallel fences, to better define the geometry, continuity, and controls on gold distribution within the system. The company is also implementing enhanced sampling and analytical protocols to support more robust quantitative evaluation. Operational capacity continues to improve, with additional equipment deployed to optimize drilling efficiency and sample recovery. A combined air-core/reverse circulation (AC/RC) rig is expected to be mobilized in the near term, which is anticipated to accelerate drilling and expand coverage across the broader target area.
"We consider these results a breakthrough in our exploration efforts at Madeira," said Mark Tommasi, President of Canary Gold Corp. "The consistency of the geology, combined with gold recovered across multiple consecutive holes, gives us increasing confidence that we are vectoring into a meaningful gold-bearing system. While still early, we are highly encouraged by what we are seeing and are moving systematically to define the scale and continuity of this target."
The scientific and technical information contained in the news release has been reviewed and approved by Andrew Lee Smith, P.Geo., Executive Director of Canary Gold Corp., who is a Qualified Person as defined under National Instrument 43-101. In verifying the scientific and technical information disclosed, the Qualified Person has reviewed available geological logs, field notes, sampling documentation, heavy-mineral concentrate reports, analytical certificates, laboratory procedures, and other relevant technical records associated with the company's 2026 exploration program. Verification included assessment of sampling methods, chain-of-custody protocols, and analytical methods used by Overburden Drilling Management Ltd., an independent Canadian laboratory specializing in heavy-mineral evaluation.
Screw Auger drilling was conducted on an approximate 30 metre grid, with samples collected at consistent 1 metre intervals. The samples are considered representative of the unconsolidated sand and gravel horizons encountered within each interval; however, due to the early-stage and reconnaissance nature of the program, results may not be representative of the overall mineralization within the target area. Samples representing a 50% split of each 1m interval of the material recovered from the core barrel was processed using a Brastorno CONSPEED LAB-CONCENTRATOR-CENTRIFUGE to produce a heavy mineral concentrate. Gold grain counts were completed from the concentrates under controlled laboratory conditions. Following grain counting, the concentrate material was returned to the original sample to preserve sample integrity.
Sample splits were subsequently submitted to Overburden Drilling Management Ltd. (ODM) Ottawa, Canada and SGS - Geosol Laboratories Ltd, Vespasiano - MG, Brazil, both independent analytical laboratories, for further analysis. Quality assurance and quality control procedures include sample splitting and the use of independent laboratories for verification. Due to the nature of gold grain count analysis, results are qualitative and are not directly comparable to gold assay grades. The information disclosed relates to early-stage exploration results, including heavy-mineral indicator mineral data, reconnaissance sampling, and preliminary geological interpretations. Additional drilling and systematic sampling are required to further evaluate the significance of the geological features described.
