Gold Explorer Targets Massive Paleochannel System in Brazil's Madeira River

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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.

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) shared an update on its exploration activities at the Madeira River Project in Rondônia, Brazil, in a May 6 release.

The company recently received analytical results from the first 33 screw auger drill holes, part of its inaugural exploration program, the release noted. To date, Canary Gold has completed 63 shallow screw auger drill holes, totaling 1,289 meters. Assay results have shown gold concentrations ranging from 10 ppb (parts per billion) to 109 ppb gold (Au) in six widely spaced holes within a 5-kilometer- by 10-kilometer area initially targeted as a potential paleochannel system.

The initial findings have confirmed the presence of gold, which was previously identified visually in pan concentrate samples from shallow, immature sand-gravel horizons, Canary said. These horizons fill a newly identified, potentially extensive paleochannel system extending some 10 kilometers east of the active Madeira river system. The company is now focusing on drilling targeting deeper, more mature, coarser sand-gravel sedimentary horizons. These horizons are characterized by rounded quartz clasts, iron enrichment, and the presence of ilmenite grains, and are believed to potentially host higher gold concentrations.

"These initial results are encouraging and provide early support for our interpretation of a laterally extensive paleochannel system at Madeira River," President Mark Tommasi said. "While the program remains at an early stage, the presence of gold within these shallow horizons across a broad area is an important step in advancing our understanding of the system. With RC drilling now underway, we are focused on systematically testing the deeper, more mature sedimentary horizons to better evaluate the potential of this target."

Following the arrival of an RC drill rig on site, the company said it has started a reverse circulation drilling program to define the geometry and lateral extent of the paleochannel system and test deeper horizons, potentially down to granite bedrock, where higher maturity sedimentary layers are interpreted to occur. Although the nearby Madeira River, located approximately 10 kilometers west of the project, has seen active and historical gold production, this is not necessarily indicative of mineralization on the company's property.

The exploration activities conducted so far represent about 5% of Canary Gold's planned exploration program and have covered only a limited portion of an interpreted 80-kilometer prospective strike length. As such, the company emphasizes that its exploration efforts are still in the early stages.

New Centrifuge Installed

The company recently said it had installed and commissioned a new centrifuge at its exploration sampling facility in Porto Velho, Rondônia, Brazil, to enhance sample processing capacity at the facility, which is crucial for supporting the company's expanding reconnaissance drilling efforts at the Madeira River Project.

The new centrifuge is specifically aimed at improving processing capabilities, thereby reducing turnaround times for sample analysis and accommodating the increasing volume of samples generated as field operations expand.

The Madeira River Project remains a central focus of Canary Gold’s exploration strategy. The company is dedicated to swiftly assessing and prioritizing targets throughout the vast project area using a data-driven approach.

Tommasi emphasized at the time that the additional centrifuge capacity will enhance the company's ability to efficiently process samples and support the ongoing advancement of its reconnaissance drilling efforts across the project.

Gold centrifuges are essential in the mining and sampling process, utilizing high G-forces to effectively separate fine gold from lighter waste materials. They are particularly effective at recovering fine-grained, free gold from both hard rock and alluvial deposits, often achieving up to 99% recovery rates. This technology is crucial for maximizing gold recovery and improving the efficiency of mining operations.

Area Known for Its Abundant Placer Deposits

¹In a stock review dated December 5, 2025, Technical Analyst John Newell highlighted Canary Gold Corp.'s advantageous position in the Brazilian gold market, which is experiencing rising gold prices and a favorable market environment. Newell commended Brazil for its innovative methods in gold discovery, tracking, and regulation, and recognized Canary Gold's substantial contributions to these advancements. The company manages approximately 163,000 hectares along the Madeira River system, an area known for its abundant placer deposits that historically yielded over 7 million ounces (Moz) of gold from the 1970s through the 1990s.

Newell elaborated on Canary's exploration hypothesis which suggests 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 layer known as Mocururu. This layer is thought to be a preserved paleoplacer surface that covers a significant portion of Canary's project area and could be the primary source of the region's alluvial gold.

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

Looking forward, Newell expressed optimism about the potential outcomes of the drilling program within a strong 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 respond 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 seeking leveraged exposure to an unfolding Brazilian gold narrative, underscored by significant upcoming drilling activities.

The Catalyst: Gold Prices Heading Higher

On Wednesday, gold prices soared to their highest level in more than a week, driven by reports of ongoing negotiations, as detailed in a CNBC report on May 6.

Peter Grant, vice president and senior metals strategist at Zaner Metals, commented on the situation, stating, "The optimism about a final deal between the U.S. and Iran has caused at least some short-term relief in gold, with lower oil prices, moderated inflation concerns, and shifted biases with regards to Fed actions later in the year." However, he also warned, "I wouldn’t say we're necessarily completely out of the woods. The market is going to continue to pivot on Middle East headlines."

Simultaneously, the mining sector witnessed a robust rally, particularly among gold and precious metals producers who enjoyed double-digit gains. This surge was highlighted in a May 6 Seeking Alpha report published on MSN, which attributed the rally to a combination of stronger-than-expected earnings and a significant rise in bullion prices. The report emphasized that the positive momentum in the mining sector is largely due to the favorable economic conditions for gold producers. With relatively fixed short-term cost structures, any increase in gold prices can rapidly boost profit margins, effectively turning modest revenue growth into substantial profit increases. This dynamic proves especially advantageous for miners.

The rally on Wednesday also indicated growing investor confidence that mining companies are moving into a more favorable phase of the economic cycle, suggesting a promising outlook for the industry.

In her recent analysis on precious metals, Amy Gower, the Metals & Mining Commodity Strategist at Morgan Stanley Research, maintained her forecast that gold prices will close the year at approximately US$5,200 an ounce, marking an increase of about 10% from current levels, reported Neils Christensen for Kitco News on May 6.

Gower commented on the recent performance of gold, noting that its struggle in the past few months, despite the ongoing geopolitical tensions due to the war in Iran, was not unexpected, Christensen said. "With the conflict triggering an energy supply shock that has reduced hopes for lower U.S. interest rates, it is not surprising that gold has struggled to work as a safe haven this time," the analysis noted.

The strategist also noted that high oil prices have been driving inflation pressures, prompting the Federal Reserve to reconsider its easing policy stance. Consequently, markets have begun to adjust expectations, moving away from anticipating rate cuts this year.

Nevertheless, Morgan Stanley still anticipates at least one rate cut within the year, which Gower believes will support an upward trajectory for gold prices. She concluded, “Gold is likely to remain sensitive to real yields, but we see room for further upside.”

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%, President Tommasi with 0.52%, Hein Poulus with 0.52%, and Al Kanji with 0.13%.

The company's market capitalization is CA$12.79 million, with 75.21 million shares outstanding. It trades within a 52-week range of CA$0.17 to CA$0.48.