Gold Explorer Discovers Breakthrough Paleochannel System in Brazil

1. Canary Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Canary Gold Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

1. Disclosure for the quote from the John Newell article published on December 5, 2025

1. For the quoted article (published on December 5, 2025), Canary Gold Corp. has paid Street Smart, an affiliate of Streetwise Reports, US$3,500.
2. Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a  U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

John Newell Disclaimer

As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

2. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Canary Gold Corp. (BRAZ:CSE; CNYGF:OTC; K5D:FSE) announced preliminary results from its current drilling activities at the Madeira River Project in Brazil which suggest the presence of a significant paleochannel gold system, according to a March 24 release.

The recent shallow drilling efforts aimed at exploring paleochannel environments have successfully intersected continuous layers of sand and gravel, varying in thickness from about 1 to 3 meters at depths between 10 and 20 meters. These findings align well with the company’s geological expectations for ancient auriferous river systems.

"We consider these results a breakthrough in our exploration efforts at Madeira," Canary President Mark Tommasi said. "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. While still early, we are highly encouraged by what we are seeing and are moving systematically to define the scale and continuity of this target."

From a single drill line extending 200 meters and positioned perpendicular to the anticipated channel direction, gold has been extracted from seven consecutive drill holes, confirming lateral continuity within the targeted horizon. The spacing between these holes ranged from 25 to 50 meters.

Notably, two of these holes showed exceptionally high gold grain counts in roughly 3-meter vertical sections, with some samples containing over 105 fine gold grains — marking the highest counts observed so far within the project area and showing favorable comparison to internal benchmarks, the company said. It is important to note that gold grain counts do not correlate directly with gold grade and are not a direct measure of gold concentration or its economic potential.

Additionally, the discovery of rock types associated with the Mocururu Formation in several drill holes lends further credence to the company’s exploration strategy and targeting methodology, the release said. These early-stage results have led to a preliminary assessment that a preserved paleochannel system wider than 200 meters has been intersected. Although these explorations are in their initial phases, they suggest the possibility of a broad, gold-rich system, pending further drilling, sampling, and detailed analysis.

Advancing the Next Phase of Exploration

Canary Gold is progressing with systematic follow-up drilling, which includes creating step-out holes along parallel lines to more accurately determine the shape, consistency, and gold distribution within the system.

The company said it is also enhancing its sampling and analytical methods to enable more comprehensive quantitative assessments. Operational capabilities are being strengthened with the addition of new equipment aimed at enhancing drilling efficiency and sample recovery.

The deployment of a combined air-core/reverse circulation (AC/RC) drilling rig is expected soon, which should speed up drilling activities and widen exploration across the larger target area, Canary said.

New Listing an 'Important Step' for Company

As of March 19, Canary's common shares have started trading on the OTCQB Venture Market under the ticker symbol CNYGF. This move represents a significant milestone for the company amidst its ongoing extensive exploration activities at the Madeira project, where it is currently conducting a 20,000-meter drilling program with dual rigs.

"Listing on the OTCQB marks an important step in expanding Canary's market presence and accessibility to U.S. investors," Tommasi said the time. He also highlighted the strategic timing of this listing, saying, "We believe this enhanced North American exposure will help broaden our shareholder base and elevate the company's profile at a pivotal time, as we continue to advance exploration at the Madeira River project and deliver consistent news flow."

The OTCQB is a platform managed by OTC Markets Group Inc., designed to offer a recognized U.S. public market for entrepreneurial and development-stage companies that meet specific reporting standards. Canary Gold's inclusion in this market is expected to boost its visibility among U.S. investors and make trading its shares more accessible, particularly as transactions can now occur in U.S. dollars during U.S. market hours.

Investors seeking information on Canary Gold can find real-time quotes and market data on the OTC Markets website under the ticker CNYGF. This accessibility is anticipated to improve liquidity and encourage broader investor engagement. Despite its new listing on the OTCQB, Canary Gold will continue to be listed on the Canadian Securities Exchange under the symbol BRAZ and on the Frankfurt Stock Exchange under the symbol K5D, according to the release.

Analyst: Co. In Favorable Position

¹Canary Gold Corp. finds itself in a favorable position, capitalizing on the rising gold prices and a supportive market environment in Brazil. Technical Analyst John Newell, on December 5, 2025, commended Brazil for its innovative methods in the discovery, tracking, and regulation of gold, and highlighted the significant contributions of Canary in these processes. The company manages approximately 163,000 hectares along the Madeira River system, an area historically celebrated for its abundant placer deposits, which yielded over 7 million ounces of gold from the 1970s through the 1990s.

Newell pointed out that Canary is investigating a hypothesis that the gold historically collected by local artisans may have originated from the Bolivian Andes, traveled to the Madeira Basin, and settled in a cemented, iron-rich stratum known as Mocururu. This layer is thought to constitute a preserved paleoplacer surface that covers a large portion of Canary's project area and could be the main source of the region's alluvial gold.

For the past three years, Canary has conducted comprehensive geological surveys, including resistivity surveys, radiometrics, sonic drilling, and aircore drilling, to delineate this horizon and confirm its presence under a shallow cover along an approximately 80-kilometer stretch, according to Newell. The investigations have revealed visible gold in Mocururu sediments and pan concentrates, with high-resistivity bands showing that the duricrust horizon lies 1–30 meters beneath the surface. The company is now shifting from theoretical exploration to systematic drill testing.

Looking forward to 2026, Newell expressed optimism that if the drilling program yields favorable outcomes within a strong gold market, progressing towards a more ambitious long-term goal could be feasible. He noted that the stock appears "coiled rather than broken and could respond quickly to positive news." He observed that with the stock currently priced in the CA$0.30–0.33 range and near support, the next technical target is around CA$0.60. Newell concluded by endorsing Canary Gold Corp. as a Speculative Buy for investors seeking leveraged exposure to an evolving Brazilian gold story, marked by significant forthcoming drilling events.

The Catalyst: Gold on a Roller Coaster

Gold prices experienced a significant drop on Monday, only to rebound sharply as new hopes for a de-escalation in the Iranian conflict emerged, according to a report by Joseph Wilkins and Hugh Leask for CNBC on March 23.

Initially, spot gold plunged over 5% to US$4,262.50 in the morning but later recovered to US$4,431.09. This volatility followed President Donald Trump's announcement that the U.S. would delay strikes on Iranian energy infrastructure after "good and productive" discussions between the two countries.

Despite the recovery, gold futures closed the day down by 0.7% at US$4,574.20, after nearly a 10% drop earlier in the day. The metal had its worst performance since September 2011 last week, losing almost 10% and approximately 25% since reaching a record high of US$5,594.92 per ounce at the end of January.

The pullback in gold, typically regarded as a safe haven during market turmoil, aligns with the broader risk-off mood in the markets amid concerns that the Iran conflict might stoke inflation and elevate energy prices. The possibility of higher interest rates due to the war could make government bonds more attractive to investors, potentially at the expense of non-yielding assets like precious metals, according to market strategists speaking to CNBC.

In the bond markets, yields on eurozone government bonds were on the rise again early Monday as the conflict intensified, leaving investors with few places to turn. The escalation followed Trump's ultimatum to Iran to reopen the Strait of Hormuz and threats from Iran against buyers of U.S. Treasury bonds, CNBC reported.

Nic Puckrin, co-founder of Coin Bureau, commented on the situation, stating, "The stakes in the Iran war just escalated, and what we’re seeing is the ultimate flight to safety. This is exactly how crowded momentum trades come to an end."

According to Wilkins and Leask, he also noted that the shift in precious metals indicates that central banks and Gulf states are utilizing their gold reserves built up over recent years, shifting from accumulation to capital preservation, which "will put a natural cap on gold prices."

Analysts are observing that the ongoing conflict with Iran is acting as a significant emergency-liquidity trade for the U.S. dollar, with rising uncertainties expected to bolster the dollar further and pose challenges for gold, wrote Neils Christensen for Kitco News on March 23.

Concurrently, disruptions in the global supply chain due to the war are pushing energy prices up, heightening inflationary pressures. This scenario is prompting global central banks to hold off on any potential monetary easing and maintain a neutral "wait-and-see" approach. According to analysts, this cautious shift in global monetary policy is likely to support higher interest rates, which in turn increases the opportunity cost of holding gold, a non-yielding asset.

Alex Kuptsikevich, Chief Market Analyst at FxPro, commented on the prolonged nature of the conflict with Iran, suggesting that it could continue to negatively impact gold. He drew parallels with Russia’s conflict with Ukraine, indicating potential for the U.S. dollar to strengthen further.

"In February 2022, investors also expected the conflict in Eastern Europe to be short-lived," he said, according to the report. "Their views then changed, and the U.S. dollar rose by 15% over the next three months. Since the start of this war, the USD index has risen by just 2%. The potential for a rally in the U.S. currency is still huge."

He continued, "Gold is considered a safe-haven and a hedge against inflation, but recent geopolitics has increased inflation risks, pushing up the likelihood of rate hikes, not cuts, as before March. From another angle, Gold simply failed to pass the safe-haven test, falling victim to speculative trading. The rapid rise in the precious metal’s price in 2025 and early 2026 led to an overcrowded market, and now the conflict has burst the inflated bubble.”

Ownership and Share Structure²

Approximately 4.02% of the company is owned by insiders and management, along with a strategic corporation, Earth Sciences Inc., which holds 4.97%. The remainder is held by retail investors.

Other significant shareholders include CEO Andrew Lee Smith with 2.69%, CEO Mark Tommasi with 0.67%, Hein Poulus with 0.53%, and Al Kanji with 0.13%.

The company's market capitalization is CA$15.63 million, with 74.41 million shares outstanding. It trades within a 52-week range of CA$0.19 to CA$0.48.