Cygnus Metals' (ASX:CY5) Chibougamau copper-gold project in Canada remains open at depth and offers significant exploration upside, driven by fractured ownership history, lack of systematic historical drilling, and absence of modern exploration techniques, according to a Tuesday report from Euroz Hartleys.

The company said Wednesday that drilling at the Corner Bay deposit within the project returned results of 7.3 meters at 4.6% copper equivalent (CuEq), including 2.5 meters at 9.7% CuEq, highlighting the potential for multiple sub-parallel lodes.

Drilling at the Golden Eye target further yielded 3.3 meters at 6.6 grams per tonne grade of gold, validating the gold prospectivity of the project.

The nearby Copper Rand processing facility provides a cost-effective pathway to restart production quickly at the project, Euroz noted.

The company is targeting a medium-term production rate of 20,000 tonnes to 30,000 tonnes per annum of contained copper at the project, although exploration activities will remain the priority, Euroz added.

Euroz maintained CYS's speculative buy rating but increased its price target to AU$0.22 from AU$0.20.