Diversified critical minerals exploration company Cygnus Metals (ASX:CY5) has acquired new tenure adjoining its Pontax Lithium Project in James Bay, Québec, Canada.
The company says this newly acquired ground acquired from Sirios Resources (CVE:SOI) comprises 70 individual claims covering 40km-square, and about 9km of strike and has had no previous lithium exploration, but is considered prospective for lithium mineralisation.
Adding on, Cygnus Metals notes this newly granted tenure gives the company a continuous 20km strike length on the prospective Chambois Greenstone Belt, which is host to the spodumene-bearing pegmatites at Pontax and brings the company’s total strike length to 44km.
“This deal with Sirios Resources ensures we secure the most favourable ground immediately to the North and adjacent to Pontax”
Key details of the transaction included the company delivering an upfront cash payment of C$1.2 million in cash plus 750,000 fully paid ordinary shares. The company reports it is continuing to evaluate opportunities in Québec in line with its strict investment criteria.
Speaking on the acquisition, Cygnus Metals Managing Director David Southam said: “We are poised to create substantial shareholder value over the next six months. We have already demonstrated our credentials in-country by acquiring Pontax and obtaining additional ground immediately adjacent and along strike. This deal with Sirios Resources ensures we secure the most favourable ground immediately to the North and adjacent to Pontax.
Prior to this deal, we had already established the presence of spodumene-bearing pegmatites over a 700m strike length. Assays from the first two holes demonstrated multiple high grade mineralised zones and, importantly, more than doubled the last known depth extension from historical drilling to 230m vertical.
The current 15,000m diamond drill program has been supported by additional rigs which are now at work following the successful completion of ice road access. The drilling is aimed at both infilling the known spodumene area, extending it and making new discoveries along what is a highly prospective belt in a world-class lithium province.”
Cygnus Metals also notes this acquisition represents 1 of 3 complementary transactions for land packages completed in the James Bay District since first buying into Pontax in July 2022.
In addition, construction of a 37km winter road has been recently completed for the continuation of a 15,000m diamond drilling (DD) program, which has identified multiple ‘high-grade’ mineralised zones of lithium.
Drilling has also proven a stacked sequence of spodumene-bearing pegmatites which remain open and double the known depth to 230m vertical.
Further assays are expected to be received and announced in March 2023.
Cygnus Metals is an ASX-listed company with key assets located in Tier 1 mining jurisdictions including Québec, Canada, and Western Australia. The company is currently exploring both jurisdictions for lithium, as well as gold, nickel, copper, and platinum group elements (PGEs).
Assets included in the company’s exploration arsenal include the Pontax and Mitsumis Lithium projects in Canada.
Images: Cygnus Gold Ltd
