- Cygnus Metals (CY5) expands the footprint of its Pontax lithium project in Québec, Canada, to over 180 square kilometres
- The company has acquired new land adjacent to the Pontax project comprising 70 individual claims covering 40 square kilometres
- In return for the land, Cygnus paid TSXV-listed Sirios Resources C$1.2 million (A$1.3 million) in cash upfront plus 750,000 CY5 shares, with further milestone payments required once a JORC resource has been defined
- Cygnus says its first round of work will focus on regional targeting and follow-up reconnaissance mapping of the newly-purchased zone
- Cygnus Metals shares are down 1.49 per cent to 33 cents at 11:02 am AEDT
Cygnus Metals (CY5) has expanded the footprint of the Pontax lithium project in Québec, Canada, to over 180 square kilometres.
The company has acquired new land adjacent to the Pontax project comprising 70 individual claims covering 40 square kilometres.
According to Cygnus, this adds to its portfolio an additional nine kilometres of strike along the Chambois Greenstone Belt, which hosts its Pontax project, resulting in a continuous 20-kilometre strike length.
The purchase from TSXV-listed Sirios Resources was made up of an upfront payment of C$1.2 million (A$1.3 million) in cash plus 750,000 SY5 shares.
Upon the definition of a JORC resource of four million tonnes at a minimum grade of 0.8 per cent lithium oxide or more, Cygnus must make a further payment of C$1 million (A$1.08 million), along with 500,000 shares.
As a second milestone payment, Cygnus will hand over C$2 million (A$2.16 million) plus 500,000 shares once it defines a JORC resource of six million tonnes and a minimum grade of 0.8 per cent lithium oxide.
“This deal with Sirios Resources ensures we secure the most favourable ground immediately to the north and adjacent to Pontax,” Cygnus Managing Director David Southam said.
In a similar vein to the Pontax project area, the company said much of the newly-acquired property was covered by a shallow glacial cover and thick vegetation with very little outcrop.
Cygnus has planned an initial program for Spring 2023 comprising magnetics and LiDAR to assist with regional targeting and follow-up reconnaissance mapping.
The winter road, which has been under construction through January, is now complete, allowing land-based diamond drill rigs and the drill crews to drive the 37 kilometres from the highway to the Pontax project site.
A 15,000-metre diamond drill program is now underway at Pontax to infill and extend the known spodumene area.
Cygnus Metals shares were down 1.49 per cent to 33 cents at 11:02 am AEDT.