en.Wedoany.com Reported - Canary Gold Corp. (CSE:BRAZ; OTC:CNYGF; FSE:K5D) reported on June 10 the latest exploration progress at its Madeira River Gold Project in Rondônia, Brazil. Deep drilling has encountered mature coarse-grained sedimentary strata composed of gravel and sand, with vertical intervals of up to 20 meters, confirming the company's hypothesis of a large paleochannel system in the area. The currently interpreted paleochannel is estimated to extend approximately 7 kilometers by 5 kilometers, stretching eastward from the existing Madeira River drainage system.
To enhance technical capabilities, the company has invited international geologist and engineer Clara Maria Lamus Molina to join the team. With over 20 years of experience in alluvial gold evaluation and sampling, her expertise complies with NI 43-101 international standards. She has held key roles in large-scale placer and alluvial deposit operations in South America, including work at Mineros S.A. in Colombia. She will be responsible for establishing sampling, analysis, quality assurance/quality control (QA/QC), and chain of custody procedures suitable for large-scale alluvial gold exploration systems, with a focus on addressing representative sampling challenges in particulate and coarse gold environments.
Canary Gold has successfully identified this paleochannel system through ongoing exploration at its Madeira River Gold Project. The discovery aligns with the company's previous geological targeting strategy and deep drilling program, which aims to detect deeper, more prospective strata beneath previously identified shallow immature gravel layers. The company has completed approximately 21 reverse circulation (RC) drill holes on a grid with approximately 1 km spacing, and 14 PQ diameter drill holes in infill areas with approximately 250 m spacing at selected targets. Current drilling results are pending and will be released upon receipt, compilation, and comprehensive review.
Deep drilling operations have reached a vertical depth of 75 meters, encountering stratigraphic units interpreted as components of a large paleochannel system connected to the Madeira River. This system extends over an area of approximately 7 km by 5 km, containing mature sedimentary strata with thicknesses of up to 20 meters. These strata are primarily composed of rounded quartz pebble gravel and sand, embedded in a ferruginous matrix containing ilmenite and organic matter such as carbonized wood fragments. Additionally, harder ferruginous cemented strata have been identified, potentially representing remnants of the Mocururu Formation.
Molina's responsibilities include reviewing existing drilling, sampling, and concentrate preparation methods; designing representative sampling protocols for coarse gold and alluvial sedimentary environments; evaluating sedimentological and depositional factors affecting gold enrichment; refining QA/QC and chain of custody procedures to align with industry best practices; assisting with geological modeling; and supporting future resource estimation workflows.
President Mark Tommasi stated that as drilling continues to define what is believed to be a large paleochannel system, it is critical to establish sampling, QA/QC procedures, and geological assessment frameworks correctly from the outset. Alluvial and paleochannel gold systems require special attention to sample representativeness, gold particle size distribution, sedimentary structures, and depositional controls. Molina's addition strengthens the technical team and supports advancing the Madeira River Project in a rigorous manner to meet the standards required for future resource estimation work.
The Madeira River Project is located in a prospective area approximately 80 km east of the Madeira River, a region known for its long history and active artisanal gold dredging operations. Although the company's current exploration activities have only tested a small portion of this extensive land package, the drilling program is being actively advanced, focusing on defining the geometry and extent of the interpreted paleochannel system and identifying sedimentary environments favorable for potential gold enrichment.
Technical analyst John Newell of John Newell & Associates commented on May 29 that Canary Gold's Madeira River Project is located in Rondônia, Brazil, adjacent to one of South America's historically richest placer gold mining districts. Historical data indicate that the Madeira River system has produced over 7 million ounces of gold over the past decades. The company believes that the ancient channels preserved within its extensive land package may be part of the same gold-rich river system. Recent developments increasingly support the company's interpretation of these paleochannels, with drilling, sampling, and geological studies confirming the presence of gold and supporting the paleochannel model. As of May 2026, the company has transitioned from conceptual geological targeting to active confirmation drilling, with a 20,000-meter drilling campaign underway.
Newell noted that gold continues to trade in what many analysts consider a long-term bull market; the Brazilian stock market has begun to emerge from a prolonged downtrend; and the Brazilian government is intensifying efforts to regulate gold production in the Amazon and combat illegal mining activities. Against this backdrop, Canary Gold's oversubscribed financing and expanded drilling program suggest increasing market attention. From a technical perspective, the stock has formed a descending wedge pattern after a correction but has been finding support near the CA$0.18 to CA$0.19 level. Its price action shows volume increasing on price rises and decreasing on pullbacks, indicating consolidation rather than liquidation. If it breaks out of the wedge pattern, it could move toward initial and subsequent resistance levels of CA$0.32 and CA$0.47, respectively. Newell rated Canary Gold as a "Speculative Buy," suitable for investors seeking a potentially significant regional-scale gold discovery in Brazil.
According to Kitco NewsWire on June 10, spot gold fell 2.2% to $4,165.90 per ounce in early U.S. trading Wednesday, while spot silver fell 1.06% to $64.645 per ounce. The U.S. Consumer Price Index (CPI) rose 0.5% month-over-month in May, with the annualized CPI rate increasing from 3.8% to 4.2%. Core CPI, excluding volatile food and energy prices, rose 0.2% for the month and 2.9% year-over-year. Energy prices surged 3.9% in May and rose 23.5% over the past 12 months. On the geopolitical front, Washington issued a warning to Iran after U.S. military strikes in response to the downing of an Apache helicopter, with Iran retaliating with missile and drone attacks. Kitco stated that gold bulls aim to push prices back above the $4,250 to $4,358 resistance zone, with first resistance at $4,250 and first support at $4,103.
According to Dan Mitchell reporting for Capital.com on June 10, as of June 8, 2026, several financial institutions have lowered their near-term average gold price forecasts while maintaining optimistic year-end targets. J.P. Morgan lowered its 2026 full-year average gold price forecast from $5,708 per ounce to $5,243 per ounce but maintained a year-end target of approximately $6,000 per ounce. Goldman Sachs reaffirmed its 2026 year-end target of $5,400 per ounce. In its "Gold Focus 2026" report, Metals Focus outlined key factors influencing the gold market in 2025, including U.S. policy uncertainty, long-term concerns about the U.S. dollar, geopolitical risks, and excessive stock valuations. The firm does not share the view that the Federal Reserve will raise interest rates over the next 12 months.
Regarding share structure, approximately 3.32% of the company's shares are held by insiders and management, strategic company Inclination Earth Sciences Inc. holds 4.92%, and the remainder is held by retail investors. The company has a market capitalization of CA$15.41 million, with 75.21 million shares outstanding, and its 52-week trading range is CA$0.16 to CA$0.48.
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