Canary Gold drills 300 m to date at Madeira River

Executive Summary

• Canary Gold Corp. provided an exploration update on its Madeira River project in Rondonia, Brazil, confirming that approximately 300 meters of drilling have been completed out of a planned 20,000-meter program.
• The company reported that initial results are consistent with its geological model and exploration thesis, though it cautioned that it is too early to determine if economic mineralization has been intersected.
• The release highlights a recent strategic expansion where Canary entered a definitive agreement to acquire 100% interest in 10 additional mineral tenements (approx. 94,700 hectares) from Talisman Venture Partners Ltd. for $1.7 million.

Key Details

• Drilling Progress: Approximately 300 meters of drilling completed to date.
• Drilling Plan: Total planned program is approximately 20,000 meters.
• Exploration Status: Early-stage; focused on testing geological models and building data sets to refine targets.
• Results Interpretation: Initial results support the geological framework and targeting approach; no specific assay intercepts or economic mineralization confirmed yet.
• M&A Transaction:
  • Target: 10 additional mineral tenements totaling approximately 94,700 hectares.
  • Seller: Talisman Venture Partners Ltd. (private British Columbia corporation).
  • Consideration: $1.7 million total, satisfied through staged cash and share payments (portion outstanding).
  • Royalty Terms: Talisman retains a 1.0% Net Smelter Return (NSR) royalty.
  • Royalty Buyback: Canary may repurchase one-half of the NSR (reducing it to 0.5%) at any time for $1 million.
• Regional Context: Project is located in a gold-bearing district with historic artisanal workings (Zelia and Santo Antonio) contiguous to the north and south.
• Qualified Person: Andrew Lee Smith, PGeo, Executive Director of Canary Gold.

Notable Quotes

• "This phase of drilling is focused on testing our geological model and building the data set required to guide future exploration," said Mark Tommasi, president of Canary Gold.
• "While the program remains at an early stage, the information collected to date is consistent with our stated exploration approach and will be used to progressively refine and prioritize targets."