Cygnus Metals' (ASX:CY5) acquisition of the Chibougamau Copper Gold project in Canada shows a clear exploration upside, according to a Tuesday note by Euroz Hartleys.

The company's management has experience in driving values from other projects that also had fractured ownership history, limited systematic drilling, and lack of modern exploration techniques, Euroz Hartleys said.

Euroz Hartleys expects the project to produce 20,000 to 30,000 tonnes of contained copper per year and also sees an opportunity for the company to unlock other projects in Canada.

The firm believes that the company's merger with Canada-based Dore Copper brings together two experienced management teams with a proven track record of delivering shareholder value.

The project's production forecast could position CY5 among the top five Australian Securities Exchange-listed copper producers, Euroz Hartleys added.

Projects like Chibougamau with granted mining permits and established processing infrastructure are well-positioned to capitalize on rising copper prices as market conditions improve, Euroz Hartleys said.

Euroz Hartleys reiterated its buy rating and price target of AU$0.20 on Cygnus Metals.

Shares of Cygnus Metals were up nearly 8% at market close.