Strong drilling targets identified next to high-grade gold-copper mine

Cygnus Executive Chairman David Southam said : ‘These latest targets, supported by historical drilling data, are located right next to a high-grade mine, making them compelling.

‘Given their potential to help drive resource growth, we are mobilising another rig with the aim of drilling the targets ASAP.

‘In the meantime, we are feeding the final results from Corner Bay into our updated resource model, which is set to be released next month. The resource update, combined with a pipeline of targets and multiple rigs turning, ensures we are maximising our ability to create significant shareholder value.

‘Uncovering these new growth targets through our compilation strategy adds further weight to the work we are doing in the background which has already delivered success at Golden Eye in a mere six months of taking ownership. The Chibougamau camp has successfully produced a significant amount of high-grade gold and copper over a long history with multiple mines that have not been geologically or economically examined in over 35 years’.

This announcement has been authorised for release by the Board of Directors of Cygnus.

David Southam

Ernest Mast

Media:

Executive Chair

President & Managing Director

Paul Armstrong

T: +61 8 6118 1627

T: +1 647 921 0501

Read Corporate

E: info@cygnusmetals.com

E: info@cygnusmetals.com

T: +61 8 9388 1474

HOLEID
X
Y
Z
Azi
Dip
Depth
From (m)
To (m)
Interval (m)
Cu (%)
Au (g/t)
Ag (g/t)
CuEq (%)

CB-25-123
554619
5510023
394.0
96.5
-60
574.0
559.0
560.8
1.8
6.3
0.9
45.9
7.4

CB-25-124
554619
5510023
394.0
92.0
-66
679.0
667.1
669.8
2.6
1.5
0.1
6.8
1.6

CB-25-125
554619
5510023
394.0
84.0
-64
643.5
594.0
598.5
4.5
3.4
0.4
22.1
3.9

CB-25-127
555071
5509889
402.8
90.0
-60
300.0
267.1
269.4
2.3
2.7
0.5
10.4
3.2

Deposit
Category
Tonnes (k)
Cu Grade (%)
Au Grade (g/t)
Cu Metal (kt)
Au Metal (koz)
CuEq Grade (%)

Corner Bay (2022)
Indicated
2,700
2.7
0.3
71
22
2.9

Inferred
5,900
3.4
0.3
201
51
3.6

Devlin (2022)
Measured
120
2.7
0.3
3
1
2.9

Indicated
660
2.1
0.2
14
4
2.3

Measured & Indicated
780
2.2
0.2
17
5
2.4

Inferred
480
1.8
0.2
9
3
2.0

Joe Mann (2022)
Inferred
610
0.2
6.8
1
133
5.5

Cedar Bay (2018)
Indicated
130
1.6
9.4
2
39
8.9

Inferred
230
2.1
8.3
5
61
8.5

Total
Measured & Indicated
3,600
2.5
0.6
90
66
3.0

Inferred
7,200
3.0
1.1
216
248
3.8

Criteria
JORC Code explanation
Commentary

Sampling
techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

All Cygnus drilling reported is NQ size (47.8 mm diameter).

Include reference to measures taken to ensure sample representativity and the appropriate calibration of any measurement tools or systems used.

NQ core was marked for splitting during logging and is sawn using a diamond core saw with a mounted jig to assure the core is cut lengthwise into equal halves.
Half of the cut core is placed in clean individual plastic bags with the appropriate sample tag.
The remaining half of the core is retained and incorporated into Cygnus’s secure, core library located on the property.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Industry standard sampling practices were used with sample lengths ranging from 0.3 m to 1.0 m and respected geological contacts. Sample tags were placed at the beginning of each sample interval and the tag numbers were recorded in a centralised database.
Sampling practice is considered to be appropriate to the geology and style of mineralisation.

Drilling
techniques
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

Diamond core was drilled using surface diamond rigs with industry recognised contractors Miikan Drilling. Miikan is a joint venture between Chibougamau Diamond Drilling Ltd., the First Nations community of Ouje-Bougoumou and the First Nations community of Mistissini both located in the Eeyou Istchee territory.
Drilling was conducted using NQ core size.
Directional surveys have been taken at 50m intervals.

Drill sample
recovery
Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Diamond core recovery was measured for each run and calculated as a percentage of the drilled interval.
Overall, the core recoveries are excellent in the Chibougamau area. As a result, no bias exists.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

All core was geologically and geotechnically logged. Lithology, veining, alteration and mineralisation are recorded in multiple tables of the drillhole database.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

Geological logging of core is qualitative and descriptive in nature.

The total length and percentage of the relevant intersections logged.

100% of the core has been logged.

Sub-
sampling
techniques
and sample
preparation
If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

The NQ diameter the core was sawn in half following a sample cutting line determined by geologists during logging and submitted for analysis on nominal 1m intervals or defined by geological boundaries determined by the logging geologist.
Each core sample is assigned a tag with a unique identifying number. Sample lengths are typically one metre but can be depending on zone mineralogy and boundaries.
This sampling technique is industry standard and deemed appropriate.
Sample sizes are considered appropriate to grain size of the materials being sampled.

Quality of
assay data
and
laboratory
tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

Sample (NQ size half core) preparation and fire assay analysis were done at Bureau Veritas Commodities Canada Ltd (‘BV’) in Timmins, Ontario, and ICP-ES multi-elements analysis was done at BV in Vancouver, B.C.
Samples were weighed, dried, crushed to 70% passing 2 mm, split to 250 g, and pulverized to 85% passing 75 µm.
Samples are fire assayed for gold (Au) (50 g) and multi-acid digestion ICP-ES finish, for 23 elements (including key elements Ag, Cu, Mo).
Samples with visible gold or likely to have gold grains are analysed with metallic screen fire assay.
Samples assaying >10.0 g/t Au are re-analysed with a gravimetric finish using a 50 g charge. Samples assaying >10% Cu are re-analysed with a sodium peroxide fusion with ICP-ES analysis using a 0.25 g charge.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

None used.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

At Bureau Veritas, laboratory QC procedures involve the use of internal certified reference material as assay standards, along with blanks, duplicates and replicates.

Verification of
sampling
and
assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

No hole is twinned.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

All logging data was completed, core marked up, logging and sampling data was entered directly into the database.
The logged data is stored on the site server directly.

Discuss any adjustment to assay data.

There was no adjustment to the assay data.

Location of
data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

The location of the drill holes and the aiming points for the orientation of the drill holes were indicated on the ground using identified stakes. The stakes marking the location of the drillholes were set up and located with a Garmin GPS model ‘GPSmap 62s’ (4m accuracy).
Surveys are collected using a Reflex EZ-Shot® single-shot electronic instrument with readings collected at intervals of approximately every 30 m downhole plus a reading at the bottom of the hole.

Specification of the grid system used.

The grid system used is UTM NAD83 (Zone 18).

Quality and adequacy of topographic control.

A Digital Terrane Model (DTM) has been used to accurately plot the vertical position of the holes, which is considered to provide an adequate level of topographic control.

Data
spacing and
distribution

Data spacing for reporting of Exploration Results.

The drill spacing for recent drilling is considered appropriate for this type of exploration.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

No resource estimation is made.

Whether sample compositing has been applied.

No sample compositing has been applied.

Orientation
of data in
relation to
geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

Recent drilling is orientated approximately at right angles to the currently interpreted strike of the known interpreted mineralisation.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

No bias is considered to have been introduced by the existing sampling orientation.

Sample
security
The measures taken to ensure sample security.

Core was placed in wooden core boxes close to the drill rig by the drilling contractor. The core was collected daily by the drilling contractor and delivered to the secure core logging facility. Access to the core logging facility is limited to Cygnus employees or designates.

Audits or
reviews
The results of any audits or reviews of sampling techniques and data.

No audits or reviews of sampling techniques or data have been undertaken, therefore information on audits or reviews is not yet available.

Criteria
JORC Code Explanation
Commentary

Mineral
tenement and
land tenure
status
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The data reported within this announcement is from the Chibougamau Project. The Chibougamau project consists of 3 properties which include:

Copper Rand, 14,383 ha (15 mining concession and 311 exploration claims). Includes Cedar Bay, Golden Eye and Colline.
Corner Bay – Devlin (1 mining license, 134 exploration claims owned 100% by CBAY and 17 claims owned 56.4% by CBAY/43.6% Pan American Silver)
Joe Mann (2 mining concessions, 82 claims owned 100% by CBAY, and 68 claims and 1 mining concession owned 65% by CBAY/35% by SOQUEM)

CBAY Minerals Inc. (‘CBAY’), a wholly owned subsidiary of Cygnus, is the owner of all claims and leases, except where otherwise noted above.
The properties collectively making up the Project are in good standing based on the Ministry of Energy and Natural Resources (Ministère de l’Énergie et des Ressources Naturelles) GESTIM claim management system of the Government of Québec.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

All tenure is in good standing.

Exploration
done by other
parties
Acknowledgment and appraisal of exploration by other parties.

Corner Bay was first identified as a prospect in 1956

1956 – 1972 eight drilling programs totalling 1,463 m and various geophysical and electromagnetic (EM) surveys
1973 – 1981 Riocanex and Flanagan McAdam: ground geophysical surveys and 43 diamond drill holes
1982 – 1984 Riocanex and Corner Bay Exploration: 38 drill holes and metallurgical test work
1988 – 1991 Corner Bay Exploration: diamond drilling, geophysical surveys and geological characterisation with initial MRE
1992 – 1994 SOQUEM optioned and acquired a 30% interest, and completed diamond drilling
1994 Explorations Cache Inc and Resources MSV Inc: diamond drilling
2004 – 2006 GéoNova and MSV: 98 diamond drill holes and first Technical Report on the Corner Bay project reporting a MRE
2007 – 2009 Campbell: diamond drilling and bulk sample
2012 – 2019 CBAY / AmAuCu: diamond drilling and MRE

Devlin identified in 1972 by airborne survey flown by the MERN

1979 – 1981 diamond drilling, geophysical surveys
1981 development commenced

Joe Mann identified in 1950 with the commencement of mining activities occurring in 1956

The Joe Mann mine operated underground during three different periods from 1956 to 2007
In July 2012, Resources Jessie acquired the Joe Mann mine property, but conducted only surface exploration work

Cedar Bay was discovered prior to 1927 by Chibougamau McKenzie Mines Ltd

From initial discovery to 2013 various surface and underground drilling campaigns and geophysical surveys undertaken by various companies

Colline was first discovered with mapping and sampling and then drilled in the 1950s with follow up drilling in 1955.

In the 1950s a shaft was sunk but the deposit was never mined
The deposit was later tested with three drill holes and six regional drill holes throughout two drilling campaigns in 1984 and 1986/87
Exploration at Colline has been halted historically with the discovery of and focus on other deposits in the region

Golden Eye (previously known as Dore Ramp) was drilled in a few different phases from 1984 to 1992.

A total of 47 drill holes from surface are reported during that period
A double ramp of approximately 1 kilometre was excavated in 1991-92 to a vertical depth of 160 meters
Underground drilling campaign of 46 holes totalling 10,200 meters tested the deposit mainly to a depth of 240 meters (only five holes tested the deposit between 300 and 600 meters)

Geology
Deposit type, geological setting and style of mineralisation.

Corner Bay and Devlin are located at the northeastern extremity of the Abitibi subprovince in the Superior province of the Canadian Shield and are examples of Chibougamau-type copper-gold deposits. The Abitibi subprovince is considered as one of the largest and best-preserved greenstone belts in the world and hosts numerous gold and base metal deposits.
The Corner Bay deposit is located on the southern flank of the Doré Lake Complex (DLC). It is hosted by a N 15° trending shear zone more or less continuous with a strong 75° to 85° dip towards the west. The host anorthosite rock is sheared and sericitized over widths of 2 m to 25 m. The deposit is cut by a diabase dyke and is limited to the north by a fault structure and to the south by the LaChib deformation zone.
The Corner Bay deposit consists of three main mineralized lodes (subparallel Main Lode 1 and Main Lode 2 above the dyke, and Main Lode below the dyke that make up the bulk of the deposit. The Corner Bay deposit has been traced over a strike length to over 1,100 m to a depth of 1,350 m and remains open at depth.
The mineralization is characterized by veins and/or lenses of massive to semi-massive sulphides associated with a brecciated to locally massive quartz-calcite material. The sulphide assemblage is composed of chalcopyrite, pyrite, and pyrrhotite with lesser amounts of molybdenite and sphalerite. Late remobilized quartz-chalcopyrite-pyrite veins occur in a wide halo around the main mineralization zones.
Devlin is a flat-lying, copper-rich lodes-hosted deposit in a polygenic igneous breccia that is less than 100 m from the surface. The tabular bodies have been modelled as four nearly horizontal lodes: a more continuous lower zone and three smaller lodes comprising the upper zone. Mineralization is reflected as a fracture zone often composed of two or more sulphide-quartz lodes and stringers. Thickness of the mineralized zones range from 0.5 m to 4.4 m. It has been diluted during modelling to reflect a minimum mining height of 1.8 m.
The Joe Mann deposit is characterized by east-west striking shear hosted lodes that extend beyond 1,000 m vertically with mineralization identified over a 3 km strike length. These shear zones form part of the Opawica-Guercheville deformation zone, a major deformation corridor cutting the mafic volcanic rocks of the Obatogamau Formation in the north part of the Caopatina Segment. The gabbro sill hosts the Main Zone and the West Zone at the mine, while the South Zone is found in the rhyolite. These three subvertical E-W (N275°/85°) ductile-brittle shear zones are sub-parallel to stratigraphy and to one another, with up to 140 m to 170 m of separation between them. These shear zones are hosted within a stratigraphic package composed of iron-magnesium (Fe-Mg) carbonate and sericite altered gabbro sills, sheared basalts, and intermediate to felsic tuffs intruded by various felsic intrusions. The Joe Mann gold mineralization is hosted by decimetre scale quartz-carbonate lodes (Dion and Guha 1988). The lodes are mineralized with pyrite, pyrrhotite, and chalcopyrite disposed in lens and lodelets parallel to schistosity, and occasionally visible gold. There are some other minor, mineralized structures, e.g., North and South-South Zones, with limited vertical and horizontal extensions.
The Cedar Bay deposit is hosted by a sheared and altered gabbroic-anorthosite of the DLC. The meta-anorthosites are typically comprised of 70% to 90% plagioclase, which has been heavily altered to epidote and albite. The Cedar Bay deposit generally has a northwest strike and dips steeply to the northeast. The gold-copper sulphide veins average approximately 1.5 m in width and are tens to hundreds of metres in strike length. The individual mineralization lenses have approximately 3:1 down dip to along strike anisotropies. The veins are comprised of pyrite and chalcopyrite with some gold and minor sphalerite. The main alteration minerals are chlorite, quartz, and carbonates. Locally, pyrrhotite dominates the vein mineral assemblage. Pyrrhotite has a very heterogeneous distribution within the mineralization.

Drill hole
Information
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

easting and northing of the drill hole collar
elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
dip and azimuth of the hole
down hole length and interception depth
hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

All requisite drill hole information is tabulated elsewhere in this release. Refer Appendix A of the body text.

Data
aggregation
methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

For recent results, drill hole intersections are reported above a lower cut-off grade of 1% CuEq over greater than 1m width.

Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

A maximum of 1m internal waste was allowed.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Individual grades for the metals included in the metal equivalents calculation for the exploration results are in Appendix A of this release. Metal equivalents for exploration results have been calculated at a copper price of US$8,750/t, gold price of US$2,350/oz and silver price of US$25/oz. Copper equivalents are calculated based on the formula CuEq(%) = Cu(%) + (Au(g/t) x 0.77258)+(Ag(g/t) x 0.00822). Gold equivalents are calculated based on the formula AuEq(g/t) = Au(g/t) + (Cu(%) x 1.29436) + (Ag(g/t) x 0.01064). Metallurgical recovery factors have been applied to the metal equivalents calculations, with copper metallurgical recovery assumed at 95% and precious metal (gold and silver) metallurgical recovery assumed at 85% based upon historical production at the Chibougamau Processing Facility, and the metallurgical results contained in Cygnus’ announcement dated 28 January 2025. It is the Company’s view that all elements in the metal equivalent calculations have a reasonable potential to be recovered and sold.

Relationship
between
mineralisation
widths and
intercept lengths
These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

All intersections reported in the body of this release are down hole.
For recent drill holes, holes are drilled as close to orthogonal to the plane of the mineralized lodes as possible.
True width is estimated to be about 80% of the downhole drill intersection.

Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include,but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Refer Figure 3 Location of recent drilling at Corner Bay:

Balanced
reporting
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Reported results from infill drilling at Corner Bay includes 4 holes for 2,196.5m. All results greater than 1% CuEq over greater than 1m width reported.

Other
substantive
exploration data
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

There is no other substantive exploration data.

Further work
The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

The Company plans to conduct drill testing of additional mineralisation as well as step out drilling of existing lodes. More information is presented in the body of this report.
Diagrams in the main body of this release show areas of possible resource extension on existing lodes. The Company continues to identify and assess multiple other target areas within the property boundary for additional resources.