Cygnus Gold Ltd (ASX:CY5) continues to create value through exploration of its significant 8,000 square kilometre ground position in the southwest corner of Western Australia.
The company listed on the ASX after a successful initial public offering (IPO) in January 2018 which raised the maximum $6 million by issuing shares priced at 20 cents.
Funds raised were earmarked to target the high-grade Bottleneck prospect where drilling commenced soon after IPO and high-grade shallow gold has been drilled.
Second phase of diamond drilling underway
In mid-May 2018, Cygnus commenced a second phase of diamond core drilling targeting prospects including Bottleneck within the 100% owned Stanley Project.
The 600-metre program was designed to deepen holes completed in the reverse circulation (RC) drilling campaign to reach target depth.
Results from the completed 32-hole 2,975-metre RC program are expected shortly.
Shallow, high-grade gold discovered at Bottleneck
The 32-hole RC program and diamond program are following up the first core holes drilled at Bottleneck which intersected 9.5 metres at 29.2 g/t gold from 36.7 metres.
Other results include 10.9 metres at 15.1 g/t gold from 24.7 metres and 6 metres at 3.3 g/t gold from 157.5 metres.
The Stanley project hosts multiple high-grade prospects along over 20 kilometres of strike length of prospective greenstone geology.
Backed by resourced-focused funds at IPO
Notably, the IPO was endorsed by two renowned cornerstone investors, Resource Capital Fund VI L.P and Southern Cross Capital.
Both funds are well known within the resource investing industry and signed subscription agreements to invest $500,000 each in the IPO.
The Wheatbelt region of Western Australia is underexplored
Cygnus’ projects are in the Wheatbelt region of Western Australia and include both early stage exploration areas through to drill-ready targets.
The Wheatbelt is under-explored for gold, primarily because mining companies have focused on the outcropping, and more readily explored, producing goldfields of Western Australia.