Resource Expansion at Chibougamau Raises Questions on Project Economics

Exploration Success at Cedar Bay

Cygnus Metals Limited has delivered a strong performance in the December 2025 quarter with significant high-grade drill results at its flagship Chibougamau Copper-Gold Project in Quebec, Canada. The latest drilling campaign at the Cedar Bay deposit returned impressive intersections, including 10.6 metres at 4.1 grams per tonne gold equivalent (AuEq), with even higher-grade intervals within this zone. These results extend mineralisation by up to 300 metres beyond the current resource boundary, highlighting the potential for further resource expansion.

The Cedar Bay deposit, historically one of the highest-grade in the region, currently holds a gold-dominant resource of 0.3 million tonnes at 8.1 g/t AuEq (Indicated) and 0.8 million tonnes at 7.8 g/t AuEq (Inferred). The recent drill results reinforce the deposit’s high-grade nature and underscore Cygnus’s ability to unlock value since acquiring the project just over a year ago.

Discovery of a New Mineralised Zone

Beyond extending known resources, Cygnus has intersected a new wide zone of mineralisation between the Cedar Bay and Copper Cliff historic mines. This zone returned 28.9 metres at 2.5 g/t AuEq from just 200 metres below surface, suggesting the presence of a parallel lode that had seen limited prior exploration. This discovery adds a fresh dimension to the project’s growth potential within the prolific Chibougamau district, which boasts a rich production history of nearly one million tonnes of copper and 3.5 million ounces of gold.

Resource Growth and Economic Study Advancement

Building on these drilling successes, Cygnus has increased its global Mineral Resource Estimate by 29%, now standing at 6.4 million tonnes at 3.0% copper equivalent (CuEq) in the Measured and Indicated categories, plus 8.5 million tonnes at 3.5% CuEq Inferred. The company is actively incorporating this updated resource base into an economic study, which will also factor in the recent surge in metal prices for copper, gold, silver, and lithium, commodities to which Cygnus has significant exposure.

The updated Scoping Study and Preliminary Economic Assessment (PEA) are underway, with completion expected in the first half of 2026. While the company cautions that the PEA remains preliminary due to the high proportion of inferred resources, the study aims to refine mine plans and processing strategies, potentially unlocking further value.

Corporate Developments and Financial Position

On the corporate front, Cygnus promoted Nick Kwong to CEO and President during the quarter, following the transition of former Managing Director Ernie Mast to a Non-Executive Director role. This leadership change coincides with a well-funded balance sheet, with cash and liquid investments totaling A$13.4 million at quarter-end, providing a solid runway for ongoing exploration and development activities.

Community engagement remains a priority, with Cygnus actively supporting local First Nations and environmental permitting processes. Baseline environmental studies at Corner Bay and Devlin areas have been completed to meet Quebec government requirements, underpinning the company’s commitment to responsible development.

Looking Ahead

With follow-up drilling planned for the second quarter of 2026 and a focus on expanding both the Cedar Bay and Corner Bay deposits, Cygnus Metals is positioning itself to advance the Chibougamau Project towards development. The integration of innovative AI-driven data analysis continues to identify promising drill targets, underscoring the company’s strategic approach to resource growth.