Canary Gold signs contract for Madeira River drilling

Executive Summary

• Canary Gold Corp. has signed a drilling services contract with Geosol and Geosedna (subsidiaries of Geopar) to execute a major 20,000-meter dual-focused drilling program at its Madeira River Project in Rondonia, Brazil.
• The program consists of approximately 5,000 meters of screw-auger drilling to validate known outcrops and trace shallow extensions, and approximately 15,000 meters of reverse circulation-aircore (RC-AC) drilling to evaluate the concealed 80-kilometer strike length of the Mocururu trend.
• This initiative follows positive heavy-mineral results from Overburden Drilling Management Ltd. (ODM) and aims to define the scale, continuity, and grade distribution of gold-bearing Mocururu targets.

Key Details

• Contractor: Geosol and Geosedna, wholly owned subsidiaries of Geopar (Brazil's largest drilling services group).
• Total Program Size: Approximately 20,000 meters.
• Screw-Auger Drilling (Geosol):
  • Volume: Approximately 5,000 meters.
  • Technique: Modified dry diamond technique for complete sample profiles through unconsolidated and consolidated sedimentary formations.
  • Objective: Validate/expand known Mocururu outcrops, trace lateral extensions beneath shallow cover, and map near-surface geometry using 25 to 50-meter infill stepouts.
• RC-AC Drilling (Geosedna):
  • Volume: Approximately 15,000 meters.
  • Objective: Systematically evaluate the extensive concealed Mocururu search space.
  • Grid Configuration: Two km by one km drill-fence/grid.
  • Coverage: Full 80-kilometer strike length of prospective stratigraphy within Canary's tenements.
• Strategic Context:
  • Program builds on positive ODM heavy-mineral observations reported in a prior release.
  • Mobilization scheduled for early January, with drilling commencing after site preparation and land access.
  • Data will be used to refine geological models and determine the distribution, thickness, and continuity of gold-bearing zones.
• Recent Corporate Activity (Referenced in "About" section):
  • In August 2025, the company entered a definitive agreement to acquire 100% interest in 10 additional mineral tenements (~94,700 hectares) from Talisman Venture Partners Ltd.
  • Consideration: $1.7 million via staged cash and share payments.
  • Royalty: Talisman retains a 1.0% NSR royalty (reducible to 0.5% via $1.0 million repurchase option).

Notable Quotes

• Mark Tommasi, President: "Securing Geosol and Geosedna, both part of Geopar, is a major operational milestone for Canary Gold. The scale and design of this program represent the most comprehensive subsurface evaluation undertaken by the company to date... The data generated from these drilling programs will be instrumental in defining the distribution, thickness and continuity of the gold-bearing Mocururu and related secondary targets across our dominant land position."