Canary Gold Corp. Receives Positive Heavy-Mineral Results From ODM Ltd, Supporting Gold Bearing Sedimentary Model At The Madeira River Project, Rondonia, Brazil

Executive Summary

• Independent heavy‑mineral concentrate analysis by Overburden Drilling Management Ltd (ODM) confirms the presence of gold‑bearing, mature placer gravels (“mocururu”) in the Madeira River basin, reinforcing Canary Gold’s geological model.
• Visible gold was identified in sonic drill hole SN‑007 and in panned concentrates from three air‑core holes (AC‑001, AC‑003, AC‑004).
• All IPO warrants (12,355,617) and 948,152 finder’s warrants were exercised, generating $3.09 M and $0.16 M respectively; only 595,939 IPO warrants expired unexercised.

Key Details

• Heavy‑Mineral Findings – ODM reports iron‑cemented gravels rich in quartz (5–10% ilmenite, no magnetite), indicating a very mature placer system sourced from the Andes.
• Visible Gold – Detected in:
• Sonic drill hole SN‑007 (mocururu sample)
• Outcrop mocururu samples (2 locations)
• Pan concentrates from air‑core holes AC‑001, AC‑003, AC‑004 (7 samples total)
• Exploration Milestones Integrated – April 2025 (visible gold in air‑core), June 2025 (sonic drill mobilization), August 2025 (tenement expansion).
• Next Exploration Steps – Integrate ODM data with geochemical, stratigraphic and geophysical datasets; conduct additional surface sampling and drilling beneath shallow cover; refine screw‑auger, air‑core and follow‑up drilling plans for high‑priority targets.
• Warrants Exercise Summary –
• IPO warrants exercised: 12,355,617 (gross proceeds $3,088,904.25)
• Unexercised IPO warrants: 595,939
• Finder’s warrants exercised: 948,152 (gross proceeds $157,545)
• Qualified Person – Andrew Lee Smith, P.Geo., Executive Director, reviewed and approved all technical information (NI 43‑101).
• Cautionary Statements – Heavy‑mineral data are qualitative; no quantitative gold grades or resource estimates provided. Visible gold observations do not confirm economic viability.

Notable Quotes

“ODM’s results provide independent confirmation that our reconnaissance sampling successfully identified the presence of the targeted sediments hosting gold occurrences across multiple tenements…underscoring the enormous scalability and district‑wide potential of the project.” – Mark Tommasi, President