In a development that could significantly expand its resource base, Cygnus Metals Limited has intersected a wide, new zone of gold and copper mineralization at its flagship Chibougamau Project in Quebec. The discovery, located well outside the existing resource boundary, highlights the untapped potential of this historic mining district.
A Promising New Discovery
The key drill hole, identified as CDR-25-16, returned an intersection of 28.9 metres at 2.5 grams per tonne gold equivalent (AuEq). This impressive width, starting just 200 metres from the surface, breaks down to 1.0 g/t gold, 1.0% copper, and 12.0 g/t silver.
This mineralized zone was found in an area between the historic Cedar Bay and Copper Cliff mines, a section that has seen limited previous exploration. Company executives believe it may represent a previously unrecognized, parallel lode system, opening a new frontier for resource growth within the project area.
"This wide intersection has significant implications for our strategy to keep growing our Chibougamau resource base," said Cygnus Executive Chairman David Southam. "To hit 28.9m at 2.5g/t AuEq just 200m from surface is a great outcome in any circumstance. But this intersection is well outside the resource and highlights the potential for a new parallel zone of mineralization."
Accelerating Exploration Efforts
In response to this encouraging result, Cygnus has announced that follow-up drilling will commence in the coming week. The objective is to test the lateral and depth extent of this new zone, with the aim of rapidly defining its scale and potential contribution to the project's overall inventory.
This discovery is part of a broader drilling campaign focused on expanding the high-grade, gold-dominant Cedar Bay deposit. The current Mineral Resource Estimate for Cedar Bay stands at an Indicated resource of 0.3 million tonnes at 8.1 g/t AuEq for 67,000 ounces AuEq, and an Inferred resource of 0.8 million tonnes at 7.8 g/t AuEq for 205,000 ounces AuEq.
Recent drilling at Cedar Bay has already yielded high-grade results, including:
- 10.6m at 4.1 g/t AuEq in hole CDR-25-11W1
- 2.7m at 5.7 g/t AuEq in hole CDR-25-12W2
- 1.3m at 9.3 g/t AuEq in hole CDR-25-15
Context and Future Outlook
The discovery reinforces the prospectivity of the Chibougamau District, a region with a formidable production history of approximately 945,000 tonnes of copper and 3.5 million ounces of gold. Cygnus recently increased the global resource across its Chibougamau Project by 29%, with the current estimate totaling 6.4 million tonnes at 3.0% copper equivalent in the Measured and Indicated categories, and 8.5 million tonnes at 3.5% copper equivalent in the Inferred category.
The company is leveraging advanced technology in its exploration, using a custom-built artificial intelligence solution to review historical data and identify new drill targets. Concurrently, work is underway to incorporate the updated resource into a revised economic study, which will also factor in current higher metal prices.
Positioned as a near-term development opportunity, the Chibougamau Project benefits from established infrastructure, including a 900,000-tonne-per-annum processing facility, highway access, an airport, regional rail, and hydro power. The latest discovery adds further momentum to Cygnus's strategy of advancing the project towards development through continuous resource growth.
The news was officially released by the company on December 7, 2025.
