Cygnus Metals Delivers High-Grade Golden Eye Results Ahead of Resource Update

Cygnus Metals Delivers High-Grade Golden Eye Results and Launches Gwillim Drilling as Resource Update Approaches

Cygnus Metals Limited (ASX: CY5 | TSXV: CYG | OTCQB: CYGGF) has announced the final assay results from its winter infill drilling campaign at the Golden Eye deposit, part of its Chibougamau Copper-Gold Project in Quebec, Canada. The results — highlighted by 39.5g/t AuEq over 3 metres — complete the dataset now set to feed into an updated Mineral Resource Estimate (MRE), while a new exploration rig has simultaneously broken ground at the highly prospective Gwillim gold prospect.

The announcement marks a tangible step forward in Cygnus' dual-track strategy: converting lower-confidence Inferred Resources into the more valuable Indicated category, while simultaneously targeting entirely new resource growth through greenfield exploration.

What Do the Final Golden Eye Assays Tell Us?

The winter drill programme at Golden Eye saw three rigs operating from an engineered ice pad, completing 15 holes totalling 5,632 metres. All Cygnus Metals Golden Eye drilling results and Gwillim drilling update assays are now in hand, clearing the way for the updated resource calculation.

The latest batch of results adds meaningfully to previously released high-grade intercepts, demonstrating broad grade continuity across the deposit. Key intervals from the new results include:

These are in addition to previously reported standout results from the same programme, including 5.9m at 28.8g/t AuEq (including 1.0m at 105.5g/t AuEq) and 11.5m at 4.3g/t AuEq from earlier holes.

Together, the full campaign dataset paints a picture of consistent, well-structured gold mineralisation with meaningful copper and silver co-product credits throughout.

Executive Chairman David Southam commented: "These results are consistent with our strategy to upgrade more of the inferred resource to the more valuable Indicated category. We have also started our first programme with joint venture partner Alamos Gold at the highly promising Gwillim gold prospect and look forward to providing updates towards the end of this quarter."

Understanding the Inferred to Indicated Upgrade — Why It Matters

What Is a Resource Classification Upgrade?

Mineral resources are classified on a confidence spectrum. Inferred Resources represent mineralisation identified with limited drilling — enough to estimate tonnage and grade with reasonable confidence, but with too much geological uncertainty for definitive mine planning.

Indicated Resources sit a step higher: they have sufficient drilling density and sample quality for robust grade and continuity assumptions, making them suitable for preliminary economic assessments and feasibility studies.

Why Does the Distinction Matter to Investors?

• Financing and development readiness: Indicated Resources are generally accepted in bankable feasibility studies and are required for formal mine planning. Inferred Resources typically cannot be included in reserve calculations.
• Perceived value: The market generally assigns higher per-ounce value to Indicated and Measured resources than to Inferred, reflecting lower geological risk.
• Conversion efficiency: If drilling confirms that grades and widths match the existing Inferred model — as the Golden Eye results suggest — the upgraded resource can underpin stronger economics in future study work.

In short, every metre converted from Inferred to Indicated at Golden Eye is a meaningful step toward a more fundable, more bankable project.

The Golden Eye Deposit: Context and Current Resource Standing

Golden Eye is a relatively recent addition to the Chibougamau resource base, having been defined by Cygnus for the first time in 2025. Furthermore, several characteristics make it strategically important within the broader project:

• Shallow depth: Mineralisation begins within 100 metres of surface, reducing development costs relative to deeper deposits.
• Existing infrastructure: A double ramp provides access to within 140 metres of the deposit, eliminating the need for greenfield underground development to reach ore.
• Proximity to processing: Located just 3 kilometres from the Chibougamau processing facility — the only base metal processing plant within a 250km radius — Golden Eye sits in a strong logistical position for near-term development studies.

Golden Eye Mineral Resource (as at 17 September 2025)

The imminent resource update will incorporate all results from the winter infill campaign. Given the grades returned — consistently above the deposit's average Inferred grade — the update has the potential to both expand the Indicated category and improve overall grade confidence.

Gwillim: A New Frontier for Resource Growth

While the Golden Eye resource conversion programme reaches completion, Cygnus has shifted one of its operating rigs to the Gwillim gold prospect — an entirely separate target aimed at establishing a first-ever maiden resource.

Gwillim is underpinned by historical drilling from 1987, with intercepts that point to high-grade gold mineralisation at accessible depths:

Critically, the Gwillim drilling programme is being co-funded by joint venture partner Alamos Gold — a senior gold producer with a market capitalisation of approximately C$23 billion. Alamos holds a 50% interest in a portion of the Gwillim claims.

The fact that a major gold company with deep technical and financial resources has chosen to co-invest in this programme speaks to the perceived merit of the target. Assay results from Gwillim are expected towards the end of the current quarter, providing investors with a near-term catalyst to watch.

The Bigger Picture: Chibougamau's Hub-and-Spoke Resource Base

Golden Eye and Gwillim are, however, just two components of a considerably larger asset base. The Chibougamau project encompasses five deposits — Corner Bay, Devlin, Joe Mann, Cedar Bay, and Golden Eye — anchored by the centrally located processing facility.

Chibougamau Project Total Mineral Resource (as at 17 September 2025)

The existing infrastructure is a defining advantage for this project. In addition to the resource base itself, Cygnus benefits from:

• A 900,000 tonne-per-annum processing facility already in place
• Situated in a regional mining town with an established workforce and services
• Sealed highway and airport access, along with regional rail
• 25kV hydro power connected to the processing site
• The facility is the only base metal processing plant within a 250km radius, creating a potential toll-milling opportunity that extends beyond Cygnus' own deposits

What Comes Next: Upcoming Catalysts

Investors should track the following near-term milestones:

1. Golden Eye Resource Update — With all Cygnus Metals Golden Eye drilling results and Gwillim drilling update assays from the 15-hole, 5,632-metre infill programme now received, an updated MRE incorporating the Inferred-to-Indicated conversion work is the primary near-term deliverable.
2. Gwillim Assay Results — Expected towards the end of the current quarter, these results will determine whether Cygnus can establish a maiden resource at this high-grade historic target.
3. Copper Rand and Joe Mann Drill Targets — The company has flagged these as near-term exploration targets as part of its ongoing district-wide programme, with two rigs currently active.

Why Cygnus Metals Warrants Investor Attention

Cygnus is executing a methodical, dual-purpose exploration and resource development programme in one of Canada's established copper-gold districts. Several elements combine to make the company's near-term newsflow particularly meaningful:

• Execution track record: The Golden Eye deposit itself is a Cygnus creation — defined from scratch in 2025 and now being systematically upgraded. That kind of resource-building capability within a single drilling cycle is a strong indicator of exploration competence.
• Strategic partnership validation: The involvement of Alamos Gold (C$23B market cap) as a co-funding JV partner at Gwillim adds credibility to the exploration thesis without diluting Cygnus' upside from its broader portfolio.
• Infrastructure advantage: The presence of a permitted, operational 900,000tpa processing facility within 3km of Golden Eye removes one of the most capital-intensive hurdles facing most junior resource companies.
• Resource growth pipeline: With Gwillim, Copper Rand, and Joe Mann all on the near-term drill schedule, the opportunity for meaningful resource additions beyond Golden Eye is tangible and funded.
• Multi-commodity exposure: The AuEq metric at Golden Eye reflects genuine copper and silver credits — meaningful components of the economics at current commodity prices, and a built-in hedge against single-metal price volatility.

Educational Section: Understanding Gold Equivalent (AuEq) Calculations

Gold Equivalent (AuEq) is a standard industry metric that converts multi-metal deposits into a single comparable figure. This approach allows investors to assess the total economic value of deposits containing several metals rather than evaluating each metal separately.

How Does AuEq Work?

The calculation combines gold, copper, and silver grades using commodity price assumptions and metallurgical recovery rates. For Cygnus Metals Golden Eye drilling results and Gwillim drilling update reporting, the formula incorporates:

• Gold price assumption: US$2,400/oz
• Copper price assumption: US$9,370/tonne
• Silver price assumption: US$30/oz
• Recovery assumptions based on historical plant performance

Why Does AuEq Matter for Investors?

This metric enables direct comparison between different deposit types and provides a clearer picture of total contained value. For instance, a deposit reporting 5g/t AuEq might contain 3g/t gold plus significant copper credits, making it economically comparable to a pure gold deposit of similar grade.

What Are the Limitations to Consider?

AuEq calculations depend on commodity price assumptions and recovery rates. Consequently, changes in metal prices or metallurgical performance can significantly affect the equivalent grade calculations.

Key Takeaway: Cygnus Metals is approaching a resource update at Golden Eye backed by consistently high-grade drill results, while simultaneously stepping out to a new high-grade gold target at Gwillim with a major gold producer funding the work alongside them. The combination of near-term resource catalysts, established infrastructure, and a credible JV partner makes this a company with a clear and news-rich pathway forward.

Technical Terms Glossary

• AuEq (Gold Equivalent): A single metric combining gold, copper, and silver grades into an equivalent gold figure using commodity price and metallurgical recovery assumptions, allowing direct comparison across multi-metal deposits.
• Indicated Resource: A mineral resource estimated with sufficient confidence in geological and grade continuity for economic planning. Considered the minimum standard for inclusion in feasibility-level economic studies.
• Inferred Resource: A lower-confidence resource category, typically based on limited drill coverage. May not be included in formal reserve calculations.
• Infill Drilling: Drilling additional holes between existing drill holes to increase confidence in grade and geological continuity, typically used to upgrade resource classifications.
• Hub-and-Spoke Model: A development concept where multiple satellite deposits feed a single central processing facility, spreading fixed infrastructure costs across a larger resource base.
• NI 43-101: The Canadian national instrument governing disclosure of mineral project information, broadly comparable to Australia's JORC Code.
• JORC Code: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves — the standard applied to Cygnus' ASX-listed disclosures.

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