Cygnus Faces Resource Upgrade Challenges Despite Strong Merger Momentum

Merger Completion and Strategic Positioning

Cygnus Metals Limited (ASX: CY5, TSXV: CYG) marked a significant milestone by completing its merger with TSXV-listed Doré Copper Mining Corp on 31 December 2024. This merger, structured as a plan of arrangement, has positioned Cygnus as a dual-listed entity focused on critical minerals exploration and development in Quebec, Canada. The combined entity now commands two core assets: the Chibougamau Copper-Gold Project and the James Bay Lithium Projects.

With a robust cash position of A$14.9 million at quarter-end, Cygnus is well-funded to execute an ambitious exploration and resource extension program throughout 2025. The board, led by Executive Chair David Southam and President & Managing Director Ernest Mast, brings a wealth of experience, particularly in advancing exploration success into production.

Exploration Highlights and Resource Potential

Preceding the merger's completion, Cygnus and Doré's joint exploration efforts yielded an outstanding first drill hole at the Corner Bay deposit within the Chibougamau Project. The hole intersected up to 9.1% copper, significantly outside the existing resource boundary, underscoring the project's growth potential. Follow-up geophysical surveys have identified a substantial off-hole electromagnetic anomaly yet to be drilled, hinting at further high-grade mineralisation.

The Chibougamau Project boasts a high-grade Measured and Indicated Mineral Resource of 3.6 million tonnes at 3.0% copper equivalent (CuEq) and an Inferred Mineral Resource of 7.2 million tonnes at 3.8% CuEq. These grades rank among the highest copper resources on the ASX. The project benefits from a 900,000 tonnes per annum processing facility, the only base metals milling infrastructure within a 250km radius, and excellent local infrastructure, including a mining town, sealed highways, rail, airport, and hydroelectric power.

Lithium Assets and Australian Exploration

Cygnus also holds significant lithium assets in the James Bay region of Quebec, with the Pontax Lithium Project hosting an inferred resource of 10.1 million tonnes at 1.04% Li2O. Recent airborne gravity surveys aim to refine drill targets by mapping mafic units within the greenstone belt, with results expected in Q1 2025. At the Auclair Lithium Project, drilling confirmed lithium mineralisation within the Pegasus pegmatite, including a notable 24.5m intersection at 0.8% Li2O.

In Australia, Cygnus is advancing exploration in the Yilgarn Craton, focusing on the Snake Rock copper-gold prospect. Encouraging historical results have prompted plans for follow-up drilling in Q1 2025, supported by the Western Australian Exploration Incentive Scheme.

Corporate and Financial Overview

The quarter also saw a successful A$11 million capital raising, providing additional financial flexibility. The merger and capital raise have collectively enhanced Cygnus's capacity to pursue a high-growth strategy, leveraging the management team's prior successes at Andean Silver and FireFly Metals.

While the Chibougamau mineral resource estimates are currently foreign estimates prepared under CIM standards and not yet JORC-compliant, Cygnus plans further evaluation and drilling to upgrade these resources. The company’s strategy focuses on systematic exploration, resource growth, and advancing the project towards development, capitalising on the region's rich mining history and infrastructure.