Gold Junior Advances District-Scale Discovery in Brazil's Madeira River

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.
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1. Disclosure for the quote from the John Newell article published on May 29, 2026

1. For the quoted article (published on May 29, 2026), the Company 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) provided an update on the progress of exploration activities at its Madeira River Gold Project in Rondônia State, Brazil, according to a June 10 release.

The company said it recently achieved significant breakthroughs in its deeper drilling efforts, encountering substantial vertical intervals of up to 20 meters consisting of mature coarse sediments such as gravels and sands. These findings corroborate Canary Gold's hypothesis of a vast paleochannel system linked to the Madeira River. To date, the interpreted paleochannel is estimated to stretch over an area of approximately 7 kilometers by 5 kilometers, extending eastward from the current Madeira River system.

To enhance its technical capabilities, Canary Gold has welcomed Clara Maria Lamus Molina to its team. Molina is an internationally acclaimed geologist-engineer with over two decades of specialized experience in the evaluation and sampling of alluvial gold deposits whose expertise aligns with NI 43-101 international standards, making her a valuable addition to the Canary Gold team. Her extensive background includes significant roles in large-scale producing placer and alluvial operations across South America, notably with Mineros S.A. in Colombia.

"The engagement is intended to support the establishment and implementation of robust exploration, sampling, analytical, and quality assurance/quality control (QA/QC) procedures appropriate for large-scale alluvial gold exploration systems, with particular emphasis on representative sampling in particulate and coarse gold environments," the release noted

Deeper Drilling Operations

Canary Gold has successfully identified a significant paleochannel system as part of its ongoing exploration at the Madeira River Gold Project. This discovery aligns with the company's previously outlined geological targeting strategy and its intensive deeper drilling program, which is designed to probe beneath the surface into deeper, more prospective horizons that lie below the previously identified shallow, immature sand and gravel sequences across the project area.

To date, the company has completed a substantial drilling effort, consisting of approximately 21 reverse circulation (RC) drill holes arranged on a roughly 1-kilometer spaced grid. Additionally, 14 PQ-diameter drill holes have been executed on about 250-meter spaced infill sections within selected target areas. The results from these current drilling activities are still pending and will be disclosed following their receipt, compilation, and thorough review.

The deeper drilling operations have reached vertical depths of up to 75 meters, encountering sedimentary units that the company interprets as components of a vast paleochannel system linked with the Madeira River, Canary said. This system spans an area of about 7 kilometers by 5 kilometers.

Notably, the paleochannel system comprises mature sedimentary horizons, which include layers up to 20 meters thick. These layers are primarily made up of rounded quartz pebble gravels and sands embedded within a ferruginous matrix that contains ilmenite and organic materials, such as carbonized wood fragments. Additionally, harder indurated ferruginous horizons have been identified, which are thought to possibly represent remnants of the Mocururu formation.

Molina's responsibilities include reviewing the existing drilling, sampling, and concentrate preparation methodologies. She will also assist in designing representative sampling protocols tailored for coarse gold and alluvial depositional environments and evaluate the sedimentological and depositional factors influencing gold concentration. Additionally, Molina will aid in refining QA/QC and chain-of-custody procedures to align with industry best practices, assist with geological modeling, and support future resource evaluation workflows. Her expertise will be pivotal in guiding the project towards a potential future National Instrument 43-101 compliant mineral resource estimate, contingent upon continued exploration success and the accumulation of adequate supporting technical data.

"As our drilling continues to define what we interpret to be a large-scale paleochannel system, it is important that we build the sampling, QA/QC, and geological evaluation framework correctly from the outset," President Mark Tommasi said. "Alluvial and paleochannel-hosted gold systems require careful attention to sample representativity, gold particle size distribution, sedimentary architecture, and depositional controls. This engagement strengthens our technical team and supports our objective of advancing Madeira in a disciplined manner toward the standards required for future resource evaluation work."

The Madeira River Project spans approximately 80 kilometers of prospective land east of the Madeira River, an area known for its long history of historic and active artisanal gold dredging operations. Although current exploration activities by Canary have only tested a limited portion of this extensive land package, the company is actively progressing its drilling programs, which are focused on defining the geometry and extent of the interpreted paleochannel systems and identifying sedimentary environments that are considered favorable for potential gold concentration.

Expert: Market Is Beginning to Pay Closer Attention to Co.

¹Canary Gold's Rio Madeira Project is located in Rondônia, Brazil, adjacent to one of South America's richest historic placer gold districts, noted Technical Analyst John Newell of John Newell & Associates in a May 29 review of the stock.

Historical data suggests that over 7 million ounces (Moz) of gold have been extracted from the Madeira River system over the past decades. Canary Gold posits that preserved ancient river channels within its extensive land holdings could be part of the same extensive gold-bearing fluvial system that fueled the historic placer production in the Madeira River.

Recent developments have increasingly supported the company's interpretation of these paleochannels. Drilling, sampling, and geological studies are affirming the presence of gold and bolstering the paleochannel model, Newell said.

As of May 2026, Canary Gold has transitioned from conceptual geological targeting to active confirmation drilling. A substantial 20,000-meter campaign is currently in progress, marking a critical phase in the project's development.

The project is drawing increased attention due to several favorable factors, he said.

"Gold continues to trade in what many analysts view as a secular bull market," Newell noted. "Brazil's equity market has begun emerging from a prolonged downtrend, while the Brazilian government has increased efforts to formalize and regulate gold production in the Amazon, while cracking down on illegal mining activity. At the same time, investors continue searching for early-stage district-scale discovery stories with meaningful leverage to rising gold prices. Against that backdrop, Canary's oversubscribed financings and expanding drill programs suggest the market is beginning to pay closer attention." 

From a technical perspective, despite a challenging correction across junior exploration stocks in early 2026, Canary Gold's stock chart shows promising signs, Newell said. After hitting initial technical targets, the stock entered a corrective phase, forming a declining wedge pattern. However, it has consistently found support around the CA$0.18–CA$0.19 level, suggesting a significant long-term support zone.

The stock's behavior — characterized by higher volumes during price increases and lighter volumes during pullbacks — suggests consolidation rather than liquidation. A potential breakout from the wedge pattern could see the stock moving towards initial and subsequent resistance levels at CA$0.32 and CA$0.47, respectively.

The current exploration campaign, along with a favorable macroeconomic environment for gold and Brazil, positions the company well for potential re-rating if upcoming drilling results prove positive, the analyst said.

Given the stock's current position near long-term support levels and the promising exploration updates, Newell rated Canary Gold Corp. a Speculative Buy for investors looking for exposure to a potentially significant district-scale gold discovery in Brazil.

CPI, Middle East Tensions Affect Gold Prices

In early U.S. trading on Wednesday, both spot gold and silver prices experienced notable declines, Kitco NewsWire reported on June 10. Spot gold fell by 2.2% to approximately US$4,165.90 an ounce, while spot silver decreased by 1.06% to US$64.645 an ounce. These movements in precious metals markets are occurring against a backdrop of persistent inflation, elevated Treasury yields, and ongoing geopolitical tensions between the U.S. and Iran.

The U.S. consumer price index (CPI) for May showed a 0.5% increase, following a 0.6% rise in April, bringing the annual CPI rate to 4.2%, up from 3.8%. The core CPI, which excludes volatile food and energy prices, rose by 0.2% for the month and 2.9% year-over-year. Notably, energy prices surged by 3.9% in May and have risen by 23.5% over the past 12 months. These figures significantly exceed the Federal Reserve's 2% inflation target, leaving gold vulnerable to the same pressures from potential rate hikes that intensified following last week's payroll report.

Geopolitically, tensions remain high as Washington has issued warnings to Iran following U.S. military strikes in response to the downing of an Apache helicopter near a strategic waterway. Iran retaliated with missile and drone attacks targeting U.S. allies in the Gulf and Jordan. Although oil prices have risen due to these disruptions and restricted traffic, the increases are relatively contained compared to what would be expected in a scenario involving a complete closure of the waterway.

From a technical perspective, gold bulls are aiming to push prices back above the resistance zone ranging from US$4,250 to US$4,358, with further targets at US$4,450 and then US$4,595, Kitco said. Conversely, bears are looking to drive prices below the support level of US$4,103, with additional downside targets at US$4,000 and then US$3,883. The first resistance is positioned at US$4,250, followed by US$4,358, while the first support level is at US$4,103, followed by US$3,883.

As of June 8, 2026, there have been significant adjustments in third-party gold price forecasts, as reported by Dan Mitchell for Capital.com on June 10. Since late May, various financial institutions have revised their near-term average gold price predictions downward while maintaining optimistic year-end targets.

J.P. Morgan has recently reduced its forecast for the 2026 full-year average gold price to US$5,243 per ounce, down from US$5,708 per ounce. The bank attributes this adjustment to a decrease in near-term investor demand, which it noted has "dried to a trickle." Despite this reduction, J.P. Morgan continues to hold a year-end target of approximately US$6,000 per ounce. The bank anticipates a resurgence in demand during the latter half of the year, driven by central bank purchases and a rebound in ETF inflows, which are central to its consistent year-end projection.

Goldman Sachs, in a May update, reaffirmed its year-end target for 2026 at US$5,400 per ounce, Mitchell said. This decision follows a pullback in gold prices from earlier record highs near US$5,600 per ounce. Goldman Sachs argues that ongoing diversification efforts by emerging market central banks and private-sector investors, coupled with persistent uncertainty in U.S. policies, bolster its structural outlook for gold.

Metals Focus launched its Gold Focus 2026 report in the first week of June, outlining that the primary factors influencing the gold market in 2025 are still relevant. These include U.S. policy uncertainty, long-term concerns about the dollar, high geopolitical risks, and overextended equity valuations. Despite prevailing inflationary pressures, Metals Focus does not align with the increasingly popular view that the U.S. Federal Reserve will implement rate hikes over the next 12 months. This perspective supports the consultancy's relatively positive forecast for gold prices moving forward.

Ownership and Share Structure²

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

The company's market capitalization is CA$15.41 million, with 75.21 million shares outstanding. It trades within a 52-week range of CA$0.16 to CA$0.48.