In late July, Cygnus did a deal to earn up to 70% of Pontax, which is just 50km from Allkem's James Bay lithium project.

Cygnus executive director Michael Naylor told the Resources Rising Stars Summer Series in Sydney yesterday that just 25 holes had been drilled along a 620m strike length.

"Every single one of them has hit mineralisation," he said.

The company started its first drilling program this month and yesterday reported "exceptional" results from the first three holes.

The results included 37.2m of spodumene-bearing pegmatites within a 75m-thick pegmatite-bearing zone.

The third hole hit 13.3m of spodumene-bearing pegmatites on a new mineralised trend north of previous drilling, which indicated the potential to replicate Pontax Central.

"We think we've hit another Pontax," Naylor said.

The drilling doubled the depth of known mineralisation to 230m.

Up to 40% spodumene was observed in places.

Naylor said mineralisation remained open in all directions.

Cygnus is targeting an initial resource estimate by mid-2023.

"We're super excited about how big this project can get quickly," Naylor said.

"We certainly think we have something of substance."

Naylor is also on the boards of Bellevue Gold and Auteco Minerals.

Ray Shorrocks, who was Bellevue's inaugural chairman and still chairs Auteco, is also chairman of Cygnus.

Bellevue managing director Steve Parsons is a major shareholder in Cygnus and is an advisor to the board.

Naylor said the team looked for unloved projects and Pontax fit the bill.

"We derive value through the drill bit," he said.

"What we do is we drill and we look for scale."

Naylor said James Bay was a "hot lithium province" and was swarming with Australian companies.

"We believe the Canadians have been a bit sleepy in the lithium space," he said.

In February, former Mincor Resources managing director David Southam will join Cygnus as MD.

"Good projects get good people and Southam is certainly one for us," Naylor said.

Southam will be a non-executive director until then.

"He's working on his golf handicap," Naylor said.

At Cygnus' last trading price of A50.5c, the company had a market capitalisation of $82.1 million.