Canary Gold Corp. Reports Elevated Gold Grain Counts from Drilling Supporting Paleochannel Discovery at Madeira River Project, Brazil

Executive Summary

• Canary Gold reports early‑stage drill results from the Madeira River Project that intersect continuous sand‑and‑gravel horizons with high gold grain counts, indicating a potentially extensive paleochannel gold system.
• Seven consecutive holes along a 200 m fence showed lateral continuity; two holes yielded >105 fine gold grains over ~3 m intervals – the highest counts recorded for the project to date.
• The company will commence follow‑up step‑out drilling and has added an air‑core/reverse‑circulation rig to accelerate exploration coverage.

Key Details

• Drill Program: Shallow drilling targeting paleochannel environments; sand/gravel horizons 1–3 m thick at depths of 10–20 m.
• Hole Spacing & Extent: Seven consecutive holes over a 200 m fence, spaced 25–50 m apart, oriented perpendicular to the interpreted channel direction.
• Gold Grain Counts: Two holes returned >105 fine gold grains over ~3 m vertical intervals – highest counts recorded across the project area (grain count is qualitative and not equivalent to grade).
• Lithology: Identification of Mocururu Formation lithologies in multiple holes supports the exploration model.
• Preliminary Interpretation: Indicates a preserved paleochannel system >200 m wide with potential for laterally extensive gold‑bearing material, pending further drilling and analysis.
• Next Phase: Systematic follow‑up drilling including step‑out holes along parallel fences; enhanced sampling and analytical protocols being implemented.
• Equipment Upgrade: Deployment of a combined air‑core/reverse circulation (AC/RC) rig expected soon to improve drilling efficiency and coverage.
• Sampling Methodology: Screw auger drilling on ~30 m grid; 1 m interval samples split 50% for heavy‑mineral concentrate processing, gold grain counting performed in controlled lab conditions; additional assays by ODM (Ottawa) and SGS‑Geosol (Brazil).
• Qualified Person: Andrew Lee Smith, P.Geo., Executive Director of Canary Gold Corp. reviewed and approved the technical information (NI 43‑101).

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, Canary Gold Corp.