New Lode Discovery at Chibougamau Raises Questions on Resource Upside

Exploration Breakthrough at Chibougamau

Cygnus Metals Limited (ASX: CY5; TSXV: CYG) has kicked off its 2025 exploration campaign with a compelling high-grade copper-gold-silver intersection at its flagship Chibougamau Copper-Gold Project in Quebec, Canada. The first drill hole of the program, CB-24-100, returned 7.3 metres grading 4.2% copper, 0.3 grams per tonne gold, and 16.6 grams per tonne silver, including a standout 2.5 metres at 9.1% copper. This mineralisation lies approximately 250 metres east of the established Corner Bay deposit, suggesting the presence of a previously undrilled, parallel lode.

The Corner Bay deposit itself is a significant resource, with Indicated Mineral Resources of 2.7 million tonnes at 2.7% copper and 0.3 g/t gold, alongside Inferred Mineral Resources of 5.9 million tonnes at 3.4% copper and 0.3 g/t gold. The new intersection, located in the footwall of Corner Bay, highlights the potential for multiple sub-parallel lodes in the region, a characteristic shared with other prolific deposits in the Abitibi greenstone belt.

Geophysical Insights and Follow-Up Targets

Complementing the drilling success, downhole electromagnetic (DHEM) surveys have identified a substantial off-hole conductive anomaly measuring 530 by 460 metres, situated north and down dip from the new intersection. This large EM plate remains untested by drilling and represents a high-priority target for upcoming exploration efforts. Historically, EM surveys have played a pivotal role in discoveries within the Chibougamau district, which has produced nearly one million tonnes of copper and 3.5 million ounces of gold from multiple mines.

Cygnus currently has two diamond drill rigs operating on site, focusing on resource growth around Corner Bay and other prospective targets within the project area. The company anticipates a steady flow of drilling results throughout 2025, which could further enhance the resource base and advance the project towards development.

Strategic Advantages and Regional Context

The Chibougamau Project benefits from robust infrastructure, including a 900,000 tonnes per annum processing facility, a local mining town, sealed highways, an airport, regional rail access, and reliable hydroelectric power. These factors provide a strong foundation for potential future mining operations.

Situated within the Abitibi subprovince, one of the world's most prolific greenstone belts, the project shares geological and structural similarities with numerous successful deposits in the region. The recent drilling results reinforce Cygnus Metals’ strategy of leveraging brownfield exploration to rapidly grow resources and unlock value for shareholders.

Executive Chairman David Southam emphasised the significance of the initial drill results, stating, "We are delighted to hit the ground running with an excellent intersection from a previously undrilled area which is only 250m away from the main Corner Bay Deposit. This result supports our view that there is much more to find at Chibougamau, both near the existing deposits and in the wider region." He also highlighted the importance of downhole geophysics as a key tool to unlock under-explored zones.

Looking Ahead

With the Chibougamau Project still in relatively early stages of modern exploration, the discovery of a new high-grade lode and the identification of a large EM anomaly signal promising avenues for resource expansion. As Cygnus Metals advances its drilling program, the market will be watching closely for further assay results that could materially enhance the project’s value proposition.