Canary Gold's Madeira River Project Shows Promising Gold Indicators Through Independent Analysis

Canary Gold Corp. has announced encouraging results from heavy-mineral analyses completed by Overburden Drilling Management Ltd (ODM), a globally recognized Canadian laboratory specializing in heavy-mineral concentrate evaluation. The findings significantly strengthen the company's geological thesis that gold-bearing sediments, originating from erosion of the Andes Mountains, have accumulated within the Madeira River basin in Rondonia, Brazil, over extended periods.

ODM Ltd confirmed strong heavy-mineral assemblages consistent with gold-bearing alluvial and paleoplacer environments in samples submitted from Canary Gold's Madeira River Project Area. These results reinforce prior work, including visible gold recovered in panned samples from reconnaissance air-core drilling initially announced in April 2025. The findings align with data from the sonic drilling program mobilized in June 2025 to capture continuous sediment profiles for detailed analysis.

According to ODM's technical report, the iron-cemented gravel, known as mocururu, is clearly of the very mature, heavy-mineral-enriched placer type. The report states that pebble varieties support the interpretation that the gravel is sourced primarily from the Andes, a known gold-endowed area that the Madeira River drains. The matrix of the prospective mocururu gravel consists of well-rounded quartz grains, indicating a long transport history and suggesting a very distal source area at a much higher elevation - presumably the Andes Mountains.

ODM's investigation identified visible gold particles in a mocururu sample from sonic drill hole SN-007 and from two outcrop mocururu samples collected within Canary Gold's tenement holdings. The laboratory's analysis revealed that although consisting primarily of quartz grains, the sandy matrix of the gravel contains 5-10% detrital ilmenite grains. Since ilmenite is a heavy mineral, its high concentration indicates that the host gravel is a placer gravel. The absence of magnetite, which is chemically less resistant than ilmenite, further indicates that the placer is very mature and may contain significant concentrations of other resistant minerals including gold.

Mark Tommasi, President of Canary Gold, stated that ODM's results provide independent confirmation that the company's reconnaissance sampling successfully identified the presence of targeted sediments hosting gold occurrences across multiple tenements. These findings validate the exploration model and support the view that the mocururu horizon represents encouraging evidence of a gold-endowed system worthy of systematic drill testing. Importantly, to date the company has tested only roughly 2% of its extensive tenement package with reconnaissance drilling, underscoring the enormous scalability and district-wide potential of the project.

The modern gold placers in the Madeira River are presumed to be second-generation placers produced by erosion of the older, iron-cemented placer gravel from the river course and reconcentration of its gold in suitable traps in the riverbed. These findings support the interpretation that the Madeira River basin has acted as a long-term collector of gold-rich sediment, consistent with its historic reputation as one of Brazil's most productive alluvial gold regions.

The company will integrate ODM's data into its regional exploration model to refine target prioritization ahead of the upcoming tenement-wide drilling campaign. Next steps include integrating ODM mineralogical data with geochemical, stratigraphic, and geophysical datasets, undertaking additional sampling via surface occurrence sampling and drilling beneath shallow cover, and advancing screw-auger and air-core drilling plans for high priority mocururu targets.