Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has received additional technical observations and recommendations from internationally recognized geologist-engineer Clara Maria Lamus Molina, providing a roadmap to advance its Rio Madeira alluvial gold project from preliminary geological observations toward systematic, representative and auditable technical data, the company announced June 25, 2026.
The review supports the company's view that Rio Madeira represents a prospective large-scale alluvial exploration target where the next phase of technical advancement will depend on disciplined validation of paleochannel geometry, gravel continuity, recoverable gold content and volumetric grade. Ms. Molina's work provides Canary with a practical roadmap to advance from preliminary geological observations toward systematic, representative and auditable technical data.
The company believes the review represents an important next step in positioning the Madeira River Project for future exploration milestones, evaluation of whether sufficient technical information can ultimately support a National Instrument 43-101 compliant mineral resource estimate subject to continued exploration success, additional drilling, representative sampling, QA/QC, recovery testing and geological modelling.
Ms. Molina's review highlights several positive indicators and technical priorities at the Madeira River Project, including active alluvial gold mining observed within the Madeira River system, visible free gold observed during the inspection of active alluvial mining operations within the broader Madeira River system, favourable gravel intervals identified in areas of exploration interest, geomorphological features compatible with alluvial plains, terraces, paleochannels and high-energy channel environments, paleochannels and coarse-gravel systems identified as priority targets for alluvial gold concentration, sonic drilling recommended as a preferred validation tool in priority target areas, recovered-volume control recommended to evaluate gold content on a reliable volumetric basis, standardized logging, granulometry, gold-particle classification, QA/QC and chain-of-custody procedures recommended, and geological-volumetric modelling identified as a key step toward future resource-readiness.
As announced on June 10, 2026, recent deeper drilling has intersected targeted mature coarse sediments, including gravels and sands, supporting the company's interpretation of a large-scale paleochannel system associated with the Madeira River.
Mark Tommasi, President of Canary Gold, commented: “Rio Madeira exhibits several characteristics commonly associated with alluvial gold systems, including interpreted paleochannel targets, favourable gravel horizons and active alluvial mining within the broader Madeira River region. The next step is disciplined validation. Ms. Molina's review gives us a clear technical pathway to test the project in a way that is systematic, auditable and meaningful for investors.”
Mr. Tommasi continued: “Alluvial gold systems are different from conventional hard-rock deposits. They are generally evaluated on a volumetric basis, where the size and continuity of the paleochannel, the thickness of favourable gravels, recoverable gold content, stripping ratio, processing efficiency and throughput are all important. Our objective is to define the channel, measure the gravel, validate the grade, test recovery and build the database step by step.”
Alluvial, or placer, gold systems are formed when gold is naturally liberated from source rocks, transported by ancient or modern river systems and concentrated by hydraulic sorting within favourable sedimentary environments such as coarse gravels, sand bars, terraces, channel bases and paleochannels. Canary's exploration model at the Madeira River Project is focused on identifying preserved paleochannel and high-energy gravel environments within the broader Madeira River system where gold may have been naturally concentrated and preserved.
The company is currently in the early stages of this pathway. The next phase is intended to validate geometry, continuity, gravel thickness, representative grade and recovery characteristics. A central recommendation from Ms. Molina is the use of sonic drilling in priority target areas, which is considered well suited to unconsolidated alluvial environments because it can improve sample recovery, preserve stratigraphic relationships, reduce interval contamination, improve fine-material recovery and support more accurate measurement of recovered sample volume.
Future work is expected to focus on systematic sonic drilling in priority areas, metre-by-metre geological logging, recovered-volume measurement by interval, controlled sample processing and gravity concentration, gold-particle recovery, classification and weighing, laboratory validation of selected samples, robust QA/QC and chain-of-custody procedures, and geological-volumetric modelling.
The company also reviewed mature alluvial gold systems to better understand the technical pathway required to move an alluvial discovery toward resource definition and potential development. One relevant example is the Nechí alluvial gold system in Colombia, operated by Mineros S.A., which has NI 43-101 mineral resource and reserve disclosure, extensive drilling, production history and operating reconciliation. Canary cautions that Nechí is referenced solely as an educational and technical benchmark and no inference should be drawn that the Madeira River Project hosts comparable mineralization.
The company is now reviewing budgets, logistics, access and sequencing for a priority sonic-drilling and sample-processing program at the Madeira River Project. The company cautions investors that exploration remains at an early stage, no mineral resource has been defined, and there can be no assurance that continued exploration will result in the delineation of an economic mineral deposit.
