Cygnus Gold : to acquire high-grade lithium spodumene project

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Cygnus poised for rapid growth after game-changing deal to acquire high-grade lithium spodumene project

Drilling has already outlined spodumene over 620m strike length with hits such as 2.6% Li2O

Key Points

ASX ANNOUNCEMENT:	• Cygnus strikes binding agreement under which it can earn up to
29 July 2022
	70% of the Pontax Lithium Project in Quebec, Canada
only
	• Cygnus will also take significant shareholding in current Pontax
ASX: CY5
	owner TSXV-listed Stria Lithium Inc
CORPORATE DIRECTORY	•	Cygnus has received commitments for $4.2m in a share
Non-Executive Chairman		placement to fast-track exploration. Board and management have
	committed to $0.5 million which represents ̴12% of placement
Raymond Shorrocks
use		• Pontax is located within world class lithium province which hosts
		major lithium projects including James Bay (40Mt @ 1.4% Li2O i),
Executive Director
	Whabouchi (56Mt @ 1.4% Li2O ii) and Rose (34Mt @ 0.9% Li2O iii)
Michael Naylor
• All holes drilled to date have hit spodumene bearing lithium-
Non-Executive Directors		caesium-tantalum (LCT)	pegmatites with high-grade,	shallow
	intersections including:
Michael Bohm
Shaun Hardcastle		o 9.0m @ 1.7% Li2O from 46.9m
			o 15.6m @ 1.6% Li2O from 83.9m
Company Secretary		o 4.8m @ 2.6% Li2O from 19.4m
Susan Field
	o 13.0m @ 1.4% Li2O from 36m
Major Shareholders	• No drilling outside the outcropping central zone (620m strike),
Steve Parsons 6.9%
	which remains open along trend and at depth
Merk Investments 6.9%
• Multiple high priority walk-up drill targets for testing. Cygnus will
Southern Cross 6.7%
	undertake a ̴10,000m drilling program commencing in Q4
Michael Naylor 5.2%
personal		•	Initial metallurgical test work generated 6% spodumene
Michael Bohm 5.1%
Advancing the Pontax Lithium		concentrate	using conventional processing	techniques with
	potential tantalum biproduct with grades up to 549ppm Ta2O5
Project in the world class
James Bay lithium district in	•	Pontax has	excellent infrastructure, with sealed road access
Canada and the Bencubbin		within 22km of the project and access to Quebec's hydro power
Lithium Project in Western
	network
Australia.
For		•	Quebec is strategically well-positioned to capitalise on the energy
$1.95m Cash (30/06/2022)
-			transition and e-mobility markets in Europe and the US
24 Outram Street	•	Highly experienced board and management team	in place
West Perth WA 6005
	including Bellevue Gold founders (Steve Parsons, Michael Naylor
-
		and Ray	Shorrocks)	and experienced	mining	industry
T:	[phone]
	professional Michael Bohm (Non-Executive Director of Mincor
E:	[e-mail]
	Resources and previously Ramelius Resources)

1. www.cygnusgold.com
   -

Cygnus Gold Limited

For personal use only

Cygnus Executive Director Mr Michael Naylor said: "This is an exceptional opportunity for Cygnus. Drilling has already established that Pontax is a high-grade lithium spodumene prospect with mineralisation outlined over a 620m strike length.

"The growth potential is also immense, with the mineralisation open along strike in both directions and numerous walk-up drilling targets. And the metallurgical testwork has generated 6% spodumene concentrate, meaning it meets the key criteria set by global customers.

"The successful share placement ensures we have the funds to underpin an extensive drilling program to begin unlocking the full value of Pontax.

"The Cygnus team looks forward to working closely with our Canadian partners at Stria Lithium Corp to create value for all the Pontax stakeholders".

Cygnus Gold (ASX: CY5) is pleased to announce that it has entered into a binding agreement which gives it an exclusive option to acquire up to 70 per cent of the Pontax Lithium Project in Quebec, Canada.

Pontax is an outstanding opportunity for Cygnus to create value for its shareholders because high-grade lithium spodumene has already been established through drilling and there is immense scope to continue growing the mineralisation through exploration.

Pontax has spodumene-hosted LCT pegmatites with limited diamond drilling returning numerous high-grade lithium intersections from outcropping mineralisation. Mineralisation at Pontax remains open along strike and at depth with multiple walk-up drill targets.

Through an earn-in agreement with Stria Lithium Inc. ("Stria"), the Company is planning a systematic exploration program on the property with diamond drilling to start in Q4. The Company plans to complete resource definition and step out drilling over the next six months.

This agreement represents a unique opportunity for Cygnus to unlock potential in a world-class lithium province, underpinning its transition to a diversified global battery metals explorer.

Pontax Lithium Project: Located in one of Canada's most prolific lithium provinces

The Pontax Lithium Project has been acquired due to the potential to host a substantial lithium Resource. The Project covers 36km2 located in the prolific Superior Province of Quebec, with the James Bay region one of the most endowed lithium terranes in the world, even though only minimal modern exploration has been seen over the past 20 years.

Advanced significant lithium projects of northern Quebec include (refer to Figure 1):

• Abitibi Lithium Hub (119.1Mt @ 1.1% Li2O iv) operated by Sayona Mining Limited/Piedmont Lithium Inc (Refer to Sayona Mining's ASX Presentation dated 27 May 2022)
• James Bay (40.3Mt @ 1.4% Li2O iv) operated by Allkem Ltd (Refer to Allkem's ASX Announcement dated 21 December 2021)
• Whabouchi (55.7Mt @ 1.4% Li2O ii) operated by Nemaska Lithium Inc (Refer to Nemaska Lithium NI 43-101 dated 31 May 2019)
• Rose (34.2Mt @ 0.9% Li2O iv) operated by Critical Elements Lithium Corp (Refer to Critical Elements' TSX-VAnnouncement dated 13 June 2022)
• Moblan (16.1Mt @ 1.4% Li2O iv) operated by Sayona Mining/SOQUEM Inc (Refer to Sayona
  Mining's ASX Presentation dated 27 May 2022)

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For personal use only

Figure 1: Location of the Pontax Lithium Project and significant lithium deposits in the James Bay Area as well as major access routes through the region

Pontax: - Unlocking the Potential

The Pontax Lithium Project is host to numerous pegmatite swarms with the only explored swarm being Central Pontax which outcrops over 620m of strike and remains open along strike and at depth. There are untested pegmatite outcrops north of the central outcrop that have never been drilled and multiple targets for follow up drilling.

To date 25 diamond drill holes for ~3,286m have been completed at the project with drilling entirely focussed upon the known extent of the outcrop. All holes drilled to date have hit spodumene bearing lithium-cesium- tantalum (LCT) pegmatites with significant drill intersections including:

•	9m @ 1.7% Li2O from 46.9m	•	12.0m @ 1.1% Li2O from 99.5m
•	15.6m @ 1.6% Li2O from 83.9m	•	12.0m @ 1.4% Li2O from 83.0m

•	4.8m @ 2.6% Li2O from 19.4m	•	7.9m @ 1.4% Li2O from 88.9m
•	13.0m @ 1.4% Li2O from 36.0m	•	4.1m @ 2.5% Li2O from 64.3m

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The drilling from Central Pontax is completely open in all directions with some of the thickest intervals from the deepest drilling which is still shallow at less than 130m vertical depth.

For personal use only

Figure 2: Arial view of the Central Pontax lithium pegamtite swarm looking towards the south west. The mineralisation outcrops over 620m and has been the sole focus of historic drilling whilst mineralisation remains open in all directions. Inset: Example of high grade mineralisation in drill core with abudent spodume crystals from just 20m depth in hole 975-19-020. Interval grading 3.8% Li2O within a broader intercept of 4.8m at 2.6% Li2O from 19.4m.

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For personal use only

Figure 3: Plan view of the main area within the Pontax Project that has been the focus of historic exploration. Illustrating the Pontax Central pegmatite swarm with the location of the 25 holes drilled to date and selected significant intercepts. This trend remains open and untested under shallow cover in both directions along strike as well as at depth. The map also illustrates the North Pontax pegamatite swarm which has not yet been drilled as well as other outcrops in the area that have not been assessed.

Geology and Mineralisation

The Pontax Project is hosted in the world class Archean Superior Province of the Canadian Shield, which hosts some of the largest and most significant hard rock lithium resources in the world. The Project is hosted in the Chambois Greenstone Belt which sits on the southern margin of the granitic basement block which also bounds the James Bay Deposit (ASX:Allkem) in the Eastmain Greenstone Belt to the north. Like the other major greenstone belt hosted deposits in the region, the Chambois Greenstone Belt has been metamorphosed to upper greenschist/amphibolite facies with pegmatites hosted in a combination of metamorphosed basalts and metasediments.

The Central Pontax Pegmatite Swarm is hosted in multiple parallel dykes which individually are up to 15m thick. These dykes are vertically and laterally continuous and open in all directions with the deepest drilling down to 130m vertical depth. The known strike extent of the Central Pontax pegmatite swarm is 620m with all drilling focussed on the main outcrop which becomes covered to the north and south by shallow sediments. These areas are a priority drill target as mineralisation is open in both directions along strike.

The pegmatites of the Central Pontax Swarm are LCT type pegmatites with high amounts of the lithium bearing mineral spodumene, which in places can reach up to 40% of the rock mass. The spodumene forms aggregated crystal masses with individual crystals up to 40cm in lengths, characterised by a light green colour. Spodumene is the only known lithium bearing mineral hosted in the pegmatites at Central Pontax.

Forward work program

Drilling is planned for the Quebec autumn with a drill rig secured to complete a ̴10,000m programme over a six month period. The drilling will focus on the area of known mineralisation and extend this at depth where the pegmatite appears to thicken. Summer field season work will include an airborne magnetic survey to map out the structural framework of the project and other potential pegmatite bearing structures which may sit beneath shallow sediment cover. Whilst the initial drilling campaign is being completed ongoing

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