Gold Co. With Paleochannel System Discovery Expands Exploration in Brazil

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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.

1. 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) is announced the recent installation and commissioning of a new centrifuge at its exploration sampling facility in Porto Velho, Rondônia, Brazil, according to an April 9 release.

This second centrifuge is set to boost the sample processing capacity, significantly aiding the company's expanding reconnaissance drilling efforts at the Madeira River Project.

Canary Gold has been actively conducting a systematic exploration program across its extensive land package, which spans about 80 kilometers of gold-bearing stratigraphy linked to the Madeira River system. The addition of this centrifuge is aimed at enhancing processing capabilities, thereby reducing turnaround times and accommodating the growing volume of samples as field operations increase.

The Madeira River Project continues to be a pivotal element of Canary Gold’s exploration strategy. The company is focused on swiftly assessing and prioritizing targets throughout the extensive project area through a data-driven methodology.

"We are pleased to have installed a second centrifuge at our Porto Velho facility, which represents another important step in scaling our exploration activities at the Madeira River Project," said President Mark Tommasi. This additional capacity is expected to enhance our ability to process samples efficiently and support the continued advancement of our reconnaissance drilling efforts across the project."

Gold centrifuges play a critical role in sampling and mining by using high G-forces to efficiently separate fine gold from lighter waste materials. They excel at recovering fine-grained, free gold, often achieving up to 99% recovery in both hard rock and alluvial deposits. 

Breakthrough Paleochannel System Discovered

Last month, the company released preliminary results from drilling at its Madeira River Project in Brazil, indicating the discovery of a significant paleochannel gold system. The company's recent shallow drilling efforts have successfully intersected continuous layers of sand and gravel, ranging from 1 to 3 meters in thickness at depths of 10 to 20 meters, aligning with geological expectations for ancient gold-bearing river systems. Tommasi described the findings as a breakthrough, noting the geological consistency and the recovery of gold across multiple consecutive drill holes which boosts confidence in the potential of a substantial gold-bearing system.

From a single 200-meter drill line, gold has been extracted from seven consecutive drill holes, demonstrating lateral continuity within the targeted horizon, with spacing between holes ranging from 25 to 50 meters, the company said at the time. Remarkably, two of these holes revealed exceptionally high gold grain counts in approximately 3-meter vertical sections, with some samples containing over 105 fine gold grains, the highest observed within the project area to date. It's important to note that gold grain counts do not directly correlate with gold grade or economic potential.

Canary said the discovery of rock types associated with the Mocururu Formation in several drill holes further supports its exploration strategy. These early-stage results have led to a preliminary assessment that a preserved paleochannel system wider than 200 meters has been intersected, suggesting the potential for a broad, gold-rich system, pending further exploration.

Canary Gold is advancing the next phase of exploration with systematic follow-up drilling, including creating step-out holes along parallel lines to more accurately determine the shape, consistency, and distribution of gold within the system.

The company is also enhancing its sampling and analytical methods for more comprehensive assessments and boosting operational capabilities with new equipment to improve drilling efficiency and sample recovery. The expected deployment of a combined air-core/reverse circulation (AC/RC) drilling rig should accelerate drilling activities and expand exploration across the larger target area.

Region Renowned for Rich Placer Deposits

¹According to a review of the stock by Technical Analyst John Newell on December 5, 2025, Canary is strategically positioned to benefit from the rising gold prices and a favorable market environment in Brazil.

Newell praised the country for its innovative approaches in gold discovery, tracking, and regulation, and acknowledged Canary Gold's significant role in these advancements. The company oversees about 163,000 hectares along the Madeira River system, a region renowned for its rich placer deposits that historically produced over 7 million ounces (Moz) of gold from the 1970s through the 1990s.

Newell discussed Canary's exploration theory that the gold historically gathered by local artisans might have originated from the Bolivian Andes, traveled to the Madeira Basin, and accumulated in a cemented, iron-rich layer known as Mocururu. This layer is believed to be a preserved paleoplacer surface that spans a large part of Canary's project area and could be the primary source of the region's alluvial gold.

Over the past three years, Canary has carried out extensive geological surveys, including resistivity surveys, radiometrics, sonic drilling, and aircore drilling, to map this horizon and verify its presence under a shallow cover across an approximately 80-kilometer stretch. These efforts have uncovered visible gold in Mocururu sediments and pan concentrates, with high-resistivity bands indicating that the duricrust horizon is situated 1–30 meters below the surface. The company is now transitioning from theoretical exploration to systematic drill testing.

Looking ahead, Newell is optimistic about the potential outcomes of the drilling program within a robust gold market, suggesting that progressing towards a more ambitious long-term goal could be within reach. He noted that the stock has the potential to quickly react to positive developments, with a next technical target around CA$0.60.

Concluding his analysis, Newell recommended Canary Gold Corp. as a Speculative Buy for investors looking for leveraged exposure to an unfolding Brazilian gold narrative, underscored by significant upcoming drilling activities.

The Catalyst: Gold Inches Higher

On Thursday, gold prices saw an increase of over 1% as a weakening U.S. dollar provided support, amidst investor scrutiny of the ongoing fragile ceasefire between Washington and Tehran and anticipation of the U.S. consumer price index data for March, scheduled for release on Friday, according to a report by Reuters published on CNBC April 9.

Spot gold rose by 1.7% to US$4,796.50 per ounce by 11:37 a.m. ET, reaching a near three-week high, while U.S. gold futures also climbed by 1% to US$4,823.00. The dip in the U.S. dollar index made gold more accessible to buyers holding other currencies.

Bob Haberkorn, a senior market strategist at RJO Futures, commented, "The weaker dollar has helped gold regain its footing, but there is caution in the market as participants try to interpret what the ceasefire means."

He noted that although the ceasefire news initially boosted gold prices, they have since retracted from those peaks as uncertainties emerge, the article noted. Further complicating the geopolitical landscape, Israel conducted more bombings in Lebanon, which Tehran insists must be included in the ceasefire agreement, and there was no indication that Iran had ended its blockade of the Strait of Hormuz.

These geopolitical tensions and the potential breakdown in negotiations threaten to escalate energy costs and inflation, potentially prompting the Federal Reserve to maintain higher interest rates for an extended period. This scenario could diminish the attractiveness of non-yielding gold, despite its status as a traditional hedge against inflation. Since the onset of the U.S.-Israeli conflict with Iran on February 28, spot gold has fallen nearly 10%. The market is now poised for the upcoming release of U.S. consumer price index data for March, which could further influence investment decisions.

Montreal-based BCA Research has maintained a bullish stance on gold since late 2022, and despite adopting a tactically cautious approach since the beginning of the year, the firm continues to hold a long-term positive view on this precious metal, reported Neils Chrinstensen for Kitco News on April 9.

In a discussion with Kitco, Roukaya Ibrahim, chief commodity strategist at BCA Research, expressed that although gold prices are currently facing vulnerabilities from speculative positioning, real interest rates, and geopolitical tensions, she anticipates an upward trend in prices continuing into early 2027.

Ibrahim detailed that the ongoing bull market for gold has progressed through several distinct stages, starting with robust purchasing by central banks, escalating to increased demand due to geopolitical tensions, and most recently, experiencing a wave of speculative buying.

"The latest phase has been very, very speculative in nature," Ibrahim remarked, highlighting the significant contributions from Asian investors funneling money into exchange-traded funds. She cautioned, "The risk is that these flows can reverse quickly once prices begin to decline, which creates vulnerability for the market."

This recent speculative surge has led to gold increasingly mirroring the behavior of a risk asset, showing a stronger correlation with equities than in the past. Concurrently, Ibrahim noted that gold has resumed its traditional inverse relationship with real interest rates, positioning monetary policy expectations as a crucial determinant of its future price movements.

Ownership and Share Structure²

Approximately 3.32% of the company is owned by insiders and management, along with a strategic corporation, Earth Sciences Inc., which holds 4.92%. The remainder is held by retail investors.

Other significant shareholders include CEO Andrew Lee Smith with 2.66%, CEO Mark Tommasi with 0.52%, Hein Poulus with 0.52%, and Al Kanji with 0.13%.

The company's market capitalization is CA$16.55 million, with 75.21 million shares outstanding. It trades within a 52-week range of CA$0.19 to CA$0.48.