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Cygnus Metals is working towards implementing a hub-and-spoke development strategy* with its Copper Rand mill serving as the ‘hub’ of the operation. The hub-and-spoke model with established infrastructure is expected to provide the following benefits:
*The technical feasibility and economic viability of the projects has not yet been established for the hub & spoke operation model.
A Preliminary Economic Assessment* (“PEA”) was completed at the Chibougamau Project in 2022. The outcomes of the PEA were first announced by Doré on 10 May 2022 and the comprehensive technical report underpinning the PEA was announced by Doré in accordance with the requirements of NI 43-101 on 15 June 2022. The Technical Report was prepared by BBA Inc. with several consulting firms contributing to sections of the study, including SLR Consulting (Canada) Ltd., SRK Consulting (Canada) Inc. and WSP Inc. The Technical Report and the announcement are available on SEDAR+ .
*Cygnus cautions that the PEA is a preliminary technical, conceptual and economic study undertaken by Doré of the initial evaluation and potential development of the Corner Bay, Devlin and Joe Mann deposits at the Chibougamau Project. It is at scoping study level only, which is based on a lower level of technical assessment that is not sufficient to support the estimation of Ore Reserves and is inherently uncertain. The production targets and forecast financial information disclosed in the PEA are underpinned by Measured Mineral Resources (approximately 1.17%), Indicated Mineral Resources (approximately 32.10%) and Inferred Mineral Resources (approximately 66.73%). However, Cygnus is not able to disclose the outcomes of the PEA as the significant proportion of Inferred Resources included in the Life of Mine means that pursuant to ASX and ASIC guidance there is not considered to be sufficiently reasonable grounds for the production targets and forecast financial information disclosed in the PEA. Accordingly, Cygnus is not disclosing the production targets and forecast financial information reported in the PEA and cautions investors against making investment decisions based on such targets and forecasts.
Cygnus’ main objective is to grow the mineral resources base at the Project and move towards a feasibility study. The resource base, which currently stands at 3.6 million tonnes of Measured and Indicated Mineral Resources at 3.0% copper equivalent and 7.2 million tonnes of Inferred Mineral Resources at 3.8% copper equivalent 10.8Mt at 3.5% CuEq for 306kt Cu and 314koz Au ², includes four assets – Corner Bay (main asset), Devlin, Cedar Bay, and Joe Mann – all located within 50km of the central 900ktpa processing facility.
Note 2: The Mineral Resource Estimate at the Chibougamau Project is a foreign estimate prepared in accordance with CIM Standards. A competent person has not done sufficient work to classify the foreign estimate as a mineral resource in accordance with the JORC Code, and it is uncertain whether further evaluation and exploration will result in an estimate reportable under the JORC Code. The information on the website that relates to the mineral resources of the Chibougamau Copper Project, incorporating Corner Bay, Devlin, Cedar Bay and Joe Mann was first announced by Cygnus on 15 October 2024 and titled “Cygnus agrees to merge with Doré Copper Mining Corp., combining a high-grade copper-gold project with proven exploration expertise. Refer to Appendix A Mineral Resources for a breakdown of the Mineral Resource Estimate and a summary of the assumptions.
The Chibougamau Project has excellent infrastructure with a local mining town, sealed highway, airport, regional rail infrastructure and access to hydro power via installed powerlines. The 900,000 tpa conventional processing plant (Copper Rand) is located 10km from the town of Chibougamau and last operated in 2008. Copper Rand is the only remaining base metal processing facility within a 250km radius.
The Corner Bay project is located in the vicinity of Chibougamau, Québec, approximately 55 km by road from the Copper Rand mill.
Corner Bay is a significant high-grade copper-gold deposit located on the south flank of the Lac Dore Complex. It was discovered in the early 1980s and accessed by a ramp to 115 meters in 2008. No past production is reported although an underground bulk development sample of approximately 36,000 tonnes was mined and processed at the Copper Rand mill in 2008. Mill recoveries were 94.4% for copper and 81.5% for gold.
Drilling programs by Dore Copper from 2017 to 2022 have successfully expanded the deposit along strike and down plunge. The Dore Coppers 2022 drilling program of 44 holes totaling 38,405 meters is not included in the mineral resource estimate (“MRE”) and was designed to infill the Corner Bay deposit at a 50 to 60 meter spacing from surface to a depth of 1,000 meters. The Corner Bay deposit remains open below 1,000 meters.
A gabbroic anorthositic sequence hosts the copper mineralized shear (approximately N-S, dipping 70° west) which extends from surface down to 1,300 meters vertically (open) and over 1,000 meters along strike. Mineralization consists mostly of chalcopyrite and pyrite with sporadic pyrrhotite. The alteration is characterized by sericitization and intense chloritization in proximity to the mineralization and within the shear in general. The ore body is bisected by the regional Gabbro Isle dyke, a large north-south striking diorite dyke dipping sub-vertical. There are numerous conjugate and parallel mineralized structures beyond the main shear that remain to be drill tested.
The deposit consists of three main mineralized veins (subparallel Main Vein 1 and Main Vein 2 above the dyke, and Main Vein below the dyke) that make up the bulk of the deposit, and four other parallel smaller veins (West Veins and East Vein). The Main Vein below the dyke is the continuation of the mineralization above in Main Vein 1 and 2, but as the name implies, it is located below the Gabbro Isle dyke and dips 80° towards the west. The mineralized zones vary from 15 cm to 8.0 metres in thickness (averaging 2.2 metres) and are located within a shear zone ranging from 2.0 to 25.0 metres in thickness. The deposit has limited strike extension and remains open down plunge.
The Devlin project is located approximately 10 kilometres by road west of the Corner Bay project.
Devlin was mainly explored in the mid-1970s to early 1980s and accessed by a 305-meter ramp in 1981. No past production is reported although an underground bulk sample of approximately 2,700 short tons was mined and processed at the Principale mill (dismantled), returning copper recoveries of 96.9%. In 2013 and 2014, 1,749 meters of drilling was completed in 17 holes.
The MRE for the Devlin deposit was updated in October 2021 based on historical drilling up to 2014. No additional drilling was completed at Devlin after 2014 except for a few metallurgical holes by Doré Copper during summer 2021.
The Devlin deposit is located in the Chibougamau Pluton in the middle of the Chibougamau anticline. The deposit is hosted by tonalite (“granodiorite”), diorite, and an extensive zone of chloritic-epidotic breccia.
The Devlin deposit is a flat-lying (horizontal) magmatic massive sulphide deposit which is less than 100 meters from surface. The deposit is mainly hosted by a hydrothermal breccia and consists of a massive chalcopyrite-pyrite-quartz +/- carbonate vein which pinches and swells. Minor gold is present within the ore body with values typically less than 0.34 g/t. High grade intersections usually consist of one or several parallel quartz veins varying from a few centimetres to 1 meter in thickness, in which the occurrence of chalcopyrite may vary from occasional blebby specks to massive bands.
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