Gold Junior Targets Alluvial Gold 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.
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.
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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), 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:OTCQB; K5D:FSE) announced in a June 25 release that it has received further technical insights and recommendations from Clara Maria Lamus Molina, a renowned geologist-engineer specializing in the evaluation and sampling of alluvial gold deposits, about its Madeira River Gold Project in Rondônia State, Brazil. Her review supports the company's perspective that the Rio Madeira is a promising large-scale alluvial exploration target. The release said the next phase of technical development for this project will focus on rigorously validating aspects such as paleochannel geometry, gravel continuity, recoverable gold content, and volumetric grade.

Additionally, as announced on June 10, recent deeper drilling has intersected targeted mature coarse sediments, including gravels and sands, supporting the company's interpretation of a large-scale paleochannel system associated with the Madeira River.

"Rio Madeira exhibits several characteristics commonly associated with alluvial gold systems, including interpreted paleochannel targets, favorable gravel horizons, and active alluvial mining within the broader Madeira River region," Canary President Mark Tommasi said. "The next step is disciplined validation. Ms. Molina's review gives us a clear technical pathway to test the project in a way that is systematic, auditable, and meaningful for investors."

The company said it views this review as a crucial step forward in preparing the Madeira River Project for future exploration milestones and potentially supporting a National Instrument 43-101 compliant mineral resource estimate, contingent on continued exploration success and comprehensive data collection, including additional drilling, representative sampling, QA/QC procedures, recovery testing, and geological modeling.

Molina's review highlighted several positive indicators for the Madeira River Project. These include the presence of active alluvial gold mining within the Madeira River system, visible free gold during inspections of these mining operations, and favorable gravel intervals in areas of exploration interest. The geomorphological features of the area, such as alluvial plains, terraces, paleochannels, and high-energy channel environments, are compatible with alluvial gold deposition. Priority targets for exploration have been identified in paleochannels and coarse-gravel systems.

Molina recommended sonic drilling as the preferred method for validating these priority areas and suggests implementing recovered-volume control to reliably evaluate gold content. She also advised standardizing logging, granulometry, gold-particle classification, QA/QC, and chain-of-custody procedures. Additionally, geological-volumetric modeling has been identified as a key step towards preparing for future resource estimation.

"Alluvial gold systems are different from conventional hard-rock deposits," Tommasi said. "They are generally evaluated on a volumetric basis, where the size and continuity of the paleochannel, the thickness of favorable gravels, recoverable gold content, stripping ratio, processing efficiency, and throughput are all important. Our objective is to define the channel, measure the gravel, validate the grade, test recovery, and build the database step by step."

Key Recommendation: Sonic Drilling

Canary is currently advancing its exploration efforts at Madeira River, focusing on alluvial or placer gold systems that form when gold is naturally released from source rocks and transported by water systems, eventually settling in environments like coarse gravels and paleochannels where it can be concentrated.

The company said it is in the early stages of a staged alluvial-gold development pathway, having identified preliminary geological indicators and priority paleochannel-style targets. The next steps involve validating various geological and operational factors such as the geometry, continuity, and thickness of the gravel, as well as the grade and recovery characteristics of the gold.

A key recommendation from Molina is the use of sonic drilling in these priority areas. Sonic drilling is particularly effective in alluvial environments as it enhances sample recovery, maintains the integrity of the stratigraphic relationships, minimizes contamination, and allows for more precise volume measurements. These capabilities are crucial for alluvial gold exploration due to the irregular distribution of gold and the necessity for representative sampling and reliable evaluation methods.

Looking ahead, Canary said it plans to implement systematic sonic drilling, detailed geological logging, and controlled sample processing, among other technical activities. These efforts are aimed at building a robust geological and volumetric model of the gold deposits.

Molina also suggested a practical sample-processing workflow tailored for alluvial environments, which involves screening, washing, and concentrating the material through methods like skilled panning or modern gravity-concentration equipment. This process will be supervised by experienced technicians to ensure consistency and accuracy in preliminary field estimates.

Canary is also drawing lessons from established alluvial gold systems, such as the Nechí system in Colombia, to inform its approach. While Nechí is a mature operation with extensive drilling and production history, it serves as a technical benchmark for Canary, illustrating the level of detail and discipline required to advance an alluvial system from exploration to a defined resource and operational status.

'The Market Is Beginning to Pay Closer Attention'

¹The Madeira Project is located next to one of South America's historically richest placer gold districts, according to a review of the stock by Technical Analyst John Newell of John Newell & Associates on May 29.

Historical data indicate that over 7 million ounces (Moz) of gold have been extracted from the Madeira River system over the years. Canary Gold believes that ancient river channels preserved within its extensive land holdings might be part of the same extensive gold-bearing fluvial system responsible for the historic placer production in the area.

Recent developments have increasingly validated the company's interpretation of these paleochannels. Ongoing drilling, sampling, and geological studies have confirmed the presence of gold, supporting the paleochannel model. As of May 2026, Canary has shifted from conceptual geological targeting to active confirmation drilling, undertaking a significant 20,000-meter drilling campaign that marks a pivotal phase in the project's development.

"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 analysis perspective, despite a challenging correction across junior exploration stocks earlier in 2026, Canary Gold's stock chart is showing promising signs. After achieving initial technical targets, the stock underwent 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 trading pattern — characterized by higher volumes during price increases and lighter volumes during pullbacks — indicates consolidation rather than liquidation. A potential breakout from the wedge pattern could propel the stock towards initial and subsequent resistance levels at CA$0.32 and CA$0.47, respectively.

Given the stock's current position near long-term support levels and the encouraging exploration updates, along with a favorable macroeconomic environment for gold and Brazil, Newell rated Canary Gold Corp. a Speculative Buy. He believes the company is well-positioned for a potential re-rating if upcoming drilling results are positive, making it an attractive option for investors seeking exposure to a potentially significant district-scale gold discovery in Brazil.

The Catalyst: A Light at the End of the Tunnel for Gold?

The U.S. economy's continued resilience and subdued inflation pressures were exerting downward pressure on gold prices, which were hovering around US$4,000 an ounce, Neils Christensen wrote for Kitco News on June 25. The Bureau of Economic Analysis (BEA) recently released the final reading of the Gross Domestic Product (GDP) for the first quarter, indicating a 2.1% growth quarter over quarter, an upward revision from the initial estimate of 1.6%. This growth exceeded economists' expectations, which had anticipated the figures to remain unchanged.

The BEA explained that the GDP revision was primarily due to a decrease in imports, which negatively impacts GDP calculations, and this was slightly offset by a reduction in consumer spending. The report detailed that the GDP increase was driven by a 7.5% rise in government real value added, a 4.5% increase in private goods-producing industries, and a 0.8% rise in private services-producing industries.

Significant contributors to GDP growth included the information sector, federal government, professional, scientific, and technical services, and durable goods manufacturing, while retail trade, wholesale trade, and finance and insurance experienced declines.

In a related report, the BEA also observed that while inflation pressures remain heightened, they are not intensifying. The core Personal Consumption Expenditures Price Index (PCE), which excludes the volatile food and energy sectors and serves as the Federal Reserve's preferred inflation measure, rose by 0.3% last month, aligning with the previous month's increase of 0.2% and meeting economists' predictions. Over the year, the core PCE has risen by 3.4%, which is above the Federal Reserve's target of 2%, yet the rate of increase is not accelerating.

The primary driver of inflation continues to be rising energy prices, largely influenced by ongoing conflicts in the Middle East, Christensen noted. According to the PCE report, headline inflation saw a 0.4% increase last month, with consumer prices rising by 4.1% over the year.

Despite these economic indicators, the gold market is facing challenges as it remains in a bear-market correction, with prices briefly dipping below US$4,000 an ounce following the release of the economic data.

J.P. Morgan Global Research forecasted prices per ounce to average US$6,000/oz by the final quarter of 2026, rising toward $6,300/oz by the end of 2027, the firm noted in a June 9 post. Yet Greg Shearer, head of base and precious metals at J.P. Morgan, acknowledged that recent investor interest has declined.

“Gold is stuck in a bit of a technical no-man's land," Shearer said. "Amid this sideways plod, and with growing worries that the Fed might have to respond to energy-driven inflation with hikes, gold is on the back burner for most investors at the moment.”

The ongoing geopolitical conflict involving Iran, Israel, and the U.S. presents challenges, yet it also underscores several key factors that continue to drive the diversification of demand into gold, the firm said. These factors include concerns about long-term risks such as higher inflation, erosion of purchasing power, U.S. fiscal and budgetary issues, geopolitical instability, and the unpredictability of U.S. policy.

These themes, which bolster the case for investing in gold, are currently in a state of suspension as the market awaits clearer outcomes regarding the resolution of the conflict with Iran. Such a resolution is expected to mitigate some of the associated risks for energy prices, inflation, and yields, according to an expert in the field.

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$14.26 million, with 75.21 million shares outstanding. It trades within a 52-week range of CA$0.16 to CA$0.48.