Cygnus Gold Reports New Target Kepler Zone At The Stanley Project

Cygnus Gold Reports New Target Kepler Zone At The Stanley Project

Cygnus Gold Limited (ASX: CY5) is a mineral exploration and development company in South Western Australia with a key bent towards the discovery of gold deposits. On April 2nd, 2019, Cygnus informed the market that it would commence drilling later this month at the Kepler Zone of the Stanley Project in Western Australia’s Wheatbelt. The new target Kepler Zone is adjacent to the Cygnus’ shallow high-grade Bottleneck gold prospect, which was identified from a detailed review of Cygnus hole STRC0002 which ended in mineralisation, post the aircore (AC) and reverse circulation (RC) drilling programs (that ended by late 2018).

The upcoming 1,000-metre drilling program (follow up of RC/diamond drilling) will last for about two weeks and initially target a metadacitic rock unit, which is considered as a key stratigraphic control on the distribution of gold mineralisation in this part of the 20-km Stanley greenstone. The drilling results will be released after three to four weeks as the samples are evaluated at the labs. Going further, it will also target extensions to the McDougall South prospect.

Recently, the company also completed the drilling at the Jefferies gold prospect within the Bencubbin Gold project, intersecting narrow zones of >0.1 g/t Au. The final results of this program including a detailed structural review of the core are currently underway.

Sponsored ad by Kalkine

Currently, the company is advancing exploration on the newly granted Bencubbin Nickel project with extensive coincident nickel and copper anomalism discovered in historical soil surveys. Besides, Cygnus has also collected a further 231 soil samples in addition to the existing 138 samples at the laboratory. The results from the soils program are expected to be released over the following weeks.

Apart from the wholly-owned projects, the company is also managing two significant earn-in agreements (signed in October 2017) with Gold Road Resources (ASX: GOR), which granted Gold Road to earn up to 75% interest in Cygnus’ Lake Grace and Wadderin Projects by spending $ 3.7 million over four years. Further, in early 2018, the two companies formed a JV for managing exploration on the Yandina Project.

On March 28th, 2019, Cygnus released its Annual Report 2018 posting the loss after income tax for the year at $ 638,119, down on $ 784,721 recorded in the prior year 2017. At the end of the concerned period, the net assets amounted to $ 5,626,625 including the net cash and cash equivalents of $ 3,512,139.

The operating activities resulted in net cash outflows of $ 320,984 on account of excess payments to suppliers and employees ($ 413,545) and payments for exploration expenditure ($ 103,484). The investing activities further added around $ 1.97 million to the net cash outflows due to large payments for acquisition of mining tenements ($ 49,626) and exploration expenditure ($ 103,484). On the contrary, the financing activities balanced the cash position over and above by generating net cash inflows of $ 5,654,631 primarily due to substantial proceeds of $ 6,000,000 from the issue of shares.

Cygnus has a market cap of around AUD 3.03 million with ~ 60.68 million outstanding shares. On April 2nd, 2019, the CY5 stock price closed the market trading at AUD 0.048, declining 4% by AUD 0.002.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Facebook Comments
Join Our Forum

We help you to connect with investors and people connected with the stock market.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here