Cygnus Metals (ASX:CY5) Chibougamau Copper and Gold Project in Quebec is set to capitalize on rising copper prices when market conditions improve, according to a Monday note by Euroz Hartleys.

In January, the company merged with Canadian firmDore Copper Mining to form a critical minerals company which includes the project, and the James Bay Lithium Project.

The merged company holds granted mining permits and is well-funded for an extensive exploration program, Euroz said.

On Jan. 23, the mining firm said that its exploration campaign at the project yielded 7.3 meters at 4.2% copper, 0.3 grams per tonne grade of gold, and 16.6g/t silver.

Euroz believes that the preliminary economic assessment for the Chibougamau project in Quebec could position CY5 as a Top 5 listed copper producer on the Australian Stock Exchange.

It maintained CY5's speculative buy rating and its price target of AU$0.20.