Pontax Project

The Pontax Lithium Project is situated within the prolific lithium province of James Bay in Northern Quebec, Canada. The area boasts a growing number of major lithium resources, several of which are situated within 100km of Pontax. These projects include:

James Bay (110.2Mt @ 1.3% Li₂O)
Whabouchi (55.7Mt @ 1.4% Li₂O)
Rose (34.2Mt @ 0.9% Li₂O)

The Pontax Project has excellent infrastructure being located just 4km from the James Bay sealed highway and with Hydro Quebec power infrastructure running through the property. Pontax is situated just 30km south of Allkem’s James Bay Project which is progressing towards development. Cygnus’ Pontax Project covers a significant 183km² landholding all located on Category III lands.

Pontax Maiden JORC Code 2012 Compliant Inferred Mineral Resource Estimate (MRE) of 10.1Mt @ 1.04% Li2O

Mineral Resources

The company announced a Maiden Inferred Resource Estimate (MRE) of 10.1Mt at 1.04% Li₂O which was delivered within 12 months of acquisition of the project. The MRE is defined over 1.2km of strike, demonstrating significant growth through recent exploration. Mineralisation remains open in all directions with spodumene mineralisation confirmed up to 9km from the Pontax Central resource, highlighting the huge upside potential at Pontax.

The project remains heavily underexplored with a large portion of the ground at Pontax under shallow glacial cover with only ~2% outcrop and minimal drilling.

The project has significant development potential, and the company is continuing to progress its development strategy with ongoing environmental baseline assessments through highly-regarded, Quebec-based engineering consultants, BBA. In addition, first pass metallurgical test work has already been conducted delivering excellent recoveries (> 80%) and generating a 6% spodumene concentrate using conventional dense media separation (DMS) processing techniques.

The Mineral Resource estimation was prepared in accordance with the JORC Code (2012 edition) by International Resource Solutions Pty Ltd with oversight from Cygnus personnel. The Resource estimate which was released on 14 August 2023 is presented in the table below

Table 1: JORC Mineral Resource Estimate for Pontax Central

Table 2: Pontax JORC Mineral Resource grade and tonnage reporting above a range of cut-off grades

Table 3: CIM Standards (NI 43-101) Mineral Resource for Pontax Central

A Belt Scale Opportunity

Upside

Pontax has excellent regional potential with all the key geological ingredients to host a major lithium resource:

Late, fractionated granite intrusion
Upper greenschist to amphibolite facies greenstone belt
Major structure

The spodumene mineralisation identified throughout the Pontax belt is considered likely to originate from the same source granite (the Kapiwak Pluton) as Allkem’s 110.2Mt @ 1.3% Li₂O James Bay deposit. Both projects share a similar structural setting located proximal to the major Causabiscau shear zone.

Cygnus’ Pontax Project covers a significant 44km of highly prospective greenstone belt with very little previous exploration. The project currently has over 25km of known LCT pegmatites and spodumene mineralisation has been identified over 9km of strike within the belt