Canary Gold Reports Visible Gold Grain Observations from Jaci Paraná Target
Vancouver, British Columbia – August 14, 2026 – Leads & Copy – Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) has reported visible gold grain observations from 30 consecutive one-metre reverse-circulation samples collected from RC-0032 at the Jaci Paraná target within the Company’s Madeira River Project in Rondônia, Brazil. Independent specialist laboratory Overburden Drilling Management Limited (ODM) identified visible gold grains in laboratory-prepared gravity concentrates from 29 of the 30 samples, demonstrating repeated downhole recovery of visible gold grains in RC-0032. However, these results do not represent head grades or establish grade continuity beyond the sampled hole.
ODM identified a total of 190 visible gold grains. Of these, 156 grains, or 82.1%, were reshaped, consistent with transport, abrasion, and alluvial reworking within an auriferous sedimentary system. The visible gold population is fine by particle count, with 166 grains (87.4%) measuring 100 micrometres (µm) or less. However, a pronounced coarse-particle tail and material nugget-effect risk are indicated, as five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass reported for the concentrate.
The ODM observations are described as geologically meaningful but semi-quantitative. Reported calculated ppb values relate to visible gold in a heavy-mineral concentrate and are based partly on an assumed concentrate mass, not sample head grades, metallurgical recovery results, or mineral resource estimates. The results from RC-0032 provide additional vertical information at one location within the approximately 6,700-hectare conceptual paleochannel target. Results from the broader exploration program support the paleochannel interpretation but do not yet establish representative grade or grade continuity.
Canary Gold is planning an intermediate quantitative test program comprising approximately 40 selected one-metre RC samples, each expected to weigh approximately 25 kilograms. This proposed work would include controlled gravity concentration, analysis of the gravity product and tails, and mass-balance, volume, and density controls, subject to final laboratory scope and Qualified Person review. The company has also received an indication of potential sonic-drill availability in September 2026 and is evaluating contracting, site access, permitting, program design, and budget requirements. Focused sonic sampling would be designed to assess representative recovered volumetric gold grades, expressed in milligrams per cubic metre (mg/m³), while preserving both fine and coarser gold fractions.
A larger sonic drilling campaign, potentially exceeding 15,000 metres, would only be considered if representative sampling produces sufficiently encouraging and reproducible grade, recovery, continuity, density, and volume data to justify resource delineation work. The company’s exploration emphasis is transitioning from discovery toward technical evaluation, with the immediate objective to determine whether representative sampling can produce reproducible volumetric-grade and recovery information sufficient to justify further evaluation.
“The significance of the ODM results is the repeated recovery of visible gold grains through the submitted interval in RC-0032, rather than any single calculated concentrate value,” said Mark Tommasi, President of Canary Gold. “The results provide additional vertical information at that location and support continued evaluation, but they are not representative head grades or metallurgical recovery results and do not establish grade continuity beyond the sampled hole. Our next phase is designed to generate representative and auditable volumetric data. We plan to test complete submitted RC sample material, quantify gravity recovery and losses and then evaluate focused sonic sampling. A major resource delineation program would only be considered if that work produces sufficiently encouraging and reproducible results.”
The current exploration database includes 45 RC holes totalling 2,851 metres, 14 PQ (dry diamond drilling) holes totalling approximately 902 metres, and 63 screw auger holes totalling approximately 1,297 metres, for a combined 2026 drilling and auger program of approximately 5,050 metres. Drilling has intersected repeated intervals of rounded to subrounded granules, pebbles, gravels, and coarse sands across the target area, consistent with the interpreted alluvial architecture. Gold particles have been observed in concentrated material from multiple drill locations.
Canary’s next work program is deliberately staged to test representativeness and recovery before the company commits capital to a major resource delineation campaign. Each phase is intended to answer a specific technical question and to provide a clear decision gate for the next level of expenditure. This includes whole-sample RC validation testwork and focused sonic drilling and bulk sampling. The principal reporting metric is expected to be milligrams of recovered gold per cubic metre (mg/m³), supported by density, moisture, sample recovery, and mass-balance data. Only if representative sampling produces sufficiently encouraging and reproducible grade, recovery, continuity, density, volume, and mining-characteristic data would Canary consider a larger sonic drilling campaign, subject to those results.
Approximately 50 additional samples are currently being processed by ODM. Further SGS batches from RC concentrate work are also pending or in progress. The company intends to use these discovery-stage results to refine the geological model, identify priority intervals, and improve sampling procedures. The proposed whole-sample testwork is expected to require approximately three to four weeks following laboratory receipt, subject to confirmation of the final scope, contracting, and laboratory scheduling. Results would be used to inform the location and configuration of initial sonic grids and to refine the recovery protocol before any field mobilization decision.
The scientific and technical information contained in this news release has been reviewed and approved by Andrew Lee Smith, P.Geo., a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Smith is the Executive Chairman of Canary Gold Corp. and is not independent of the Company within the meaning of National Instrument 43-101.
Canary Gold Corp. is a Canadian public exploration company focused on the acquisition and advancement of gold projects in Brazil. The Company holds an option to earn up to a 70% undivided interest in the Rio Madeira Project through a series of staged exploration expenditures and milestone payments. In August 2025, Canary further expanded its regional strategy by entering into a definitive agreement to acquire a 100% interest in ten additional mineral tenements totaling approximately 94,700 hectares from Talisman Venture Partners Ltd.
Source: Canary Gold Corp.
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