Canary talks gold grains at Madeira River project

Executive Summary

• Canary Gold Corp. reports elevated gold grain counts from early-stage drilling at its Madeira River project in Brazil, supporting the identification of a potentially significant paleochannel gold system.
• Seven consecutive drill holes along a 200-meter fence intersected continuous sand and gravel horizons (1-3 meters thick), with two holes yielding in excess of 105 fine gold grains per sample, the highest counts recorded to date.
• The company is advancing systematic follow-up drilling, including stepout holes and enhanced sampling protocols, with a combined air-core/reverse circulation (AC/RC) rig expected to be mobilized soon to accelerate exploration.

Key Details

• Drilling Intersects: Shallow drilling intersected continuous sand and gravel horizons ranging from approximately 1 to 3 meters in thickness at depths of 10 to 20 meters.
• Gold Grain Counts: Gold was recovered from seven consecutive drill holes along a single 200-meter drill fence oriented perpendicular to the interpreted channel direction.
• High-Grade Samples: Two holes returned gold grain counts over approximately three-meter vertical intervals, with individual samples yielding in excess of 105 fine gold grains.
• Geological Model: Results are consistent with the company's geological model for preserved auriferous fluvial systems. Identification of lithologies associated with the Mocururu formation supports the exploration model.
• Preliminary Interpretation: A preserved paleochannel system width exceeding 200 meters has been intersected.
• Operational Updates: Additional equipment has been deployed to optimize drilling efficiency. A combined air-core/reverse circulation (AC/RC) rig is expected to be mobilized in the near term to accelerate drilling and expand coverage.
• Sampling Methodology: Screw Auger drilling conducted on an approximate 30-meter grid with samples collected at consistent one-meter intervals. Samples processed using a Brastorno Conspeed Lab-Concentrator-Centrifuge to produce heavy mineral concentrates.
• Laboratories: Sample splits submitted to Overburden Drilling Management (ODM) in Ottawa, Canada, and SGS-Geosol Laboratories Ltd. in Vespasiano, Brazil, for analysis.
• Disclaimer: Gold grain counts are not equivalent to gold grade and should not be interpreted as a measure of gold concentration or economic viability.

Notable Quotes

• "We consider these results a breakthrough in our exploration efforts at Madeira... 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." — Mark Tommasi, President of Canary Gold.