Cygnus Metals Limited announced high priority gold drilling targets, with permit applications in progress, at its Chibougamau Copper-Gold Project in Quebec. Cygnus is continuing to aggressively explore the highly prospective Chibougamau Project and grow resources in line with the Company?s value creation strategy. Two high priority drill targets have been identified which are both known to have significant high-grade gold mineralisation and little modern exploration.
The Gwillim Project (50% JV with Alamos Gold) is located 12km northwest of the Chibougamau processing facility and has several gold rich structures running through the project. The Gwillim mine was in production in the 1970s and 1980s and produced 39koz at a grade of 4.8g/t. The main target sits 500m to the south of the historic mine and has a number of wide, high-grade intercepts which require follow up. These intersections include: 7.6m @ 38.1g/t Au from 314.9m (87-KOD-18);15.2m @ 9.4g/t Au from 155.1m (87-KOD-1); and16.4m @ 8.3g/t Au from 168.3m (87-KOD-10).
Work is ongoing to compile the data and generate drill targets while the drill permit application is in process. The Joe Mann Project is located 46km south of the Chibougamau processing facility and was a past producing mine which closed in 2007. Joe Mann was known for its high-grade, producing 1.2Moz at a grade of 8.3g/t Au.
The deposit is still open below existing workings and contains an Inferred Resource of 0.7Mt at 6.0g/t Au for 143koz Au. The Joe Mann Project covers 62km and hosts a number of near-surface regional drilling targets that require follow up work, some of which with high-grade gold intersections like:0.7m @ 480.2g/t Au from 92.3m (H-118);3.8m @ 20.8g/t Au from 287.2m (H-214); and8.4m @ 6.3g/t Au from 175.6m (H-374). Cygnus recently flew detailed airborne magnetics over the project to assist with targeting.
This is being used in conjunction with the existing drilling and planned IP surveys to plan follow-up drilling. The Joe Mann Project is located in the heart of the area owned by Northern Superior Resources which was recently acquired by IAMGOLD?s for CAD 267.4 million. This acquisition consolidates a number of significant resources in the area with IAMGOLD?s Nelligan gold deposit.
Cygnus is continuing its exploration strategy, focussed on resource growth and resource conversion, to drive the Chibougamau Project forward and deliver maximum returns to shareholders. In line with this strategy, drilling is expected to resume later this month at the Golden Eye deposit to test extensions below the current resource as well as converting more resources to the Indicated category. The current resource at Golden Eye includes an Indicated Resource of 0.5Mt at 5.6g/t AuEq for 91koz AuEq and Inferred Resource of 1.2Mt at 4.6g/t AuEq for 182koz AuEq.
The Chibougamau area has well-established infrastructure, giving the Project a significant headstart as a copper-gold development opportunity. This infrastructure includes a 900,000tpa processing facility, local mining town, sealed highway, airport, regional rail infrastructure and 25kV hydro power to the processing site. Significantly, the Chibougamau processing facility is the only processing facility within a 250km radius.
