Sirios announces the maiden mineral resource estimation for the Cheechoo Gold Deposit
December 11 2019 - 7:30AM
Management of
SIRIOS RESOURCES INC. (TSX-V: SOI)
is pleased to announce its maiden resource estimation on the
Cheechoo gold property, wholly owned by Sirios, located in Eeyou
Istchee James Bay, Quebec.
The resource estimation, based on
an open-pit constrained model, results in:
- Inferred resources containing 1.6 million ounces of
gold, from 71.0 million tonnes at an average grade of 0.69 grams of
gold per tonne;
- Significant upside for expanding the maiden mineral
resources with the potential to add an additional 25% more ounces
that have been outlined on the Cheechoo property, but require an
agreement with the neighbouring property to access this
material.
This resource estimation (Table 1) excludes the
gold mineralization outlined between the south side of the current
resource pit and the southern border of the property, as shown in
the figures below (Figures 1 and 2). This maiden mineral resource
is situated 100% on Sirios’ property and is tabulated based on the
variable sensitivities to the cut-off grade in Table 2.
Dominique Doucet, President and CEO, states "We
are very pleased with our maiden mineral resource estimation for
the Cheechoo project. This is a significant milestone for the
company, and we are quite confident that in the near future, we can
increase the grade and size of the deposit with additional work and
negotiations with adjacent property owners. Our project has
numerous positive characteristics, that include excellent gold
recovery, as shown by our recent metallurgical work, a low strip
ratio of 1.1:1, proximity to existing infrastructure and excellent
exploration potential, to name a few."
Table 1:
Pit-constrained Inferred Mineral Resource Estimate for the Cheechoo
Project |
|
Classification |
Tonnage |
Grade |
Ounces |
(t) |
Au (g/t) |
Au (oz) |
Inferred |
71,000,000 |
0.69 |
1,600,000 |
Notes to the MRE Table 1:
- The independent qualified person for the 2019 MRE, as defined
by NI 43-101 guidelines, is Pierre-Luc Richard, P. Geo., of BBA
Inc. The effective date of the estimate is December 6,
2019.
- These mineral resources are not mineral reserves as they do not
have demonstrated economic viability. The quantity and grade of
reported Inferred resources in this MRE are uncertain in nature and
there has been insufficient exploration to define these resources
as Indicated or Measured; however, it is reasonably expected that
the majority of Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration.
- Resources are presented as undiluted and pit constrained
scenario and are considered to have reasonable prospects for
economic extraction. Although calculated cut-off grades range from
0.28 to 0.29g/t, a cut-off grade of 0.30g/t Au was used for the
MRE. The pit optimization was done using Deswik Mining Software
Version 2019.3.491. The constraining pit shell was developed using
pit slopes of 45 to 50 degrees in hard rock and 26 degrees in
overburden. The cut-off grade and pit optimization was calculated
using the following parameters (amongst others): Gold price = USD
1,300, CAD:USD exchange rate = 1.30, Hard Rock Mining cost =
$2.60/t mined with incremental bench costs of 0.05$ per 10m bench,
Overburden Mining Cost = $3.50/t mined, Mining Recovery =
95%,Mining dilution = 5% at 0g/t Au, Metallurgical Recovery varying
from 85% to 88%, Processing cost = $10.00/t processed, G&A =
$2.94/t processed, Royalty of 3%, Refining and Transportation cost
= $5.00/oz. The conceptual pit-constrained resource has a 1.1:1
stripping ratio. The cut-off grade will be re-evaluated in light of
future prevailing market conditions and costs.
- The MRE was prepared using Geovia® GEMS 6.8.2 and is based on
270 surface drill holes and 385 surface channel samples, with a
total of 47,363 assays. The resource database was validated before
proceeding to the resource estimation. Grade model resource
estimation was calculated from drill hole data using an OK
interpolation method in a block model using blocks measuring 10 m x
10 m x 10 m in size. The cut-off date for drill hole database was
March 20, 2019.
- The model comprises 37 mineralized zones (which have a minimum
thickness of 3 m), five lithological units and one low-grade
mineralized body mostly included in the tonalite intrusive unit,
each defined by drill holes intercepts.
- High-grade capping was done on the composited assay data and
established on a per unit basis. Capping grades used vary from 5
g/t to 80 g/t Au and the use of restricted search ellipsoids was
also used. A value of zero grade was applied in cases of core not
assayed.
- Fixed density values were established on a per unit basis,
corresponding to the median of the SG data of each unit ranging
from 2.65 to 2.71. A fixed density of 2.00 g/cm3 was assigned to
the overburden.
- The MRE presented herein is categorized as an Inferred
resource. The Inferred mineral resource category is defined for
blocks that are informed by a minimum of two drill holes where
drill spacing is less than 100 m for the mineralized
intrusive-related mineralization. Where needed, some materials have
been either upgraded or downgraded to avoid isolated
blocks.
- The number of tonnes (metric) and ounces were rounded to the
nearest hundred thousand.
- CIM definitions and guidelines for Mineral Resource Estimates
have been followed.
- The author is not aware of any known environmental, permitting,
legal, title-related, taxation, sociopolitical or marketing issues,
or any other relevant issues not reported in this Technical Report
that could materially affect the Mineral Resource Estimate.
Figure 1 Plan view. The grey-shaded pit contains the maiden
resource estimation of 1.6 Moz of gold.
Figure 1 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/e77266ea-f5eb-4c73-b496-8d8aafcde867
Figure 2 Section view. The grey-shaded pit contains the maiden
resource estimation of 1.6 Moz of gold.
Figure 2 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/ea16ec88-2847-4ba4-ae50-958d90deff0f
Table 2:
Cheechoo Project cut-off grade sensitivity table |
|
Cut-off Grade |
Pitshell limited by claim boundaries |
Tonnage |
Grade |
Ounces |
(t) |
Au (g/t) |
Au (oz) |
|
|
|
|
0.50 |
37,300,000 |
0.97 |
1,200,000 |
0.40 |
50,500,000 |
0.83 |
1,400,000 |
0.30 |
71,000,000 |
0.69 |
1,600,000 |
0.25 |
84,400,000 |
0.63 |
1,700,000 |
0.20 |
99,500,000 |
0.57 |
1,800,000 |
The mineral resource estimate has been prepared
by consulting firm BBA Inc. in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition
Standards incorporated by reference in National Instrument 43-101
(“NI 43-101”). The estimate is based on data from 270 diamond drill
holes totaling 64,212.45 metres and 385 channels for 3,214.88
metres completed by Sirios between 2012 and April 2019. The full
technical report will be available on SEDAR (www.sedar.com) under
the Corporation’s issuer profile within 45 days. The effective date
of the current mineral resource estimate is December 6, 2019.
This mineral resource estimate reflects
geological modeling of the Cheechoo deposit which is typical of
Reduced Intrusion Related Gold Deposits. Free native gold is common
in the deposit especially in the numerous discrete high-grade gold
zones occurring within the low-grade envelope. It is characterized
by homogeneous low-grade gold mineralization associated with traces
of fine sulfide mineralization hosted in a folded granodiorite –
tonalite intrusive surrounded by metasedimentary rocks.
The potential for adding additional resources is
considered favourable and will be the focus of future exploration
programs.
The scientific and technical content of this
press release has been reviewed and approved by Mr. Dominique
Doucet, P.Eng. President and CEO of Sirios Resources Inc. and Mr.
Jordi Turcotte, P. Geo. Senior Geologist who are “Qualified
Persons” as defined by National Instrument 43-101 – Standards of
Disclosure for Mineral Projects (“NI 43-101”).
About the Cheechoo Property
The Cheechoo Property, located 200 km east of
Wemindji, Eeyou Istchee James Bay, Quebec, is wholly owned by
Sirios. It covers an area of 75 km² within two non-contiguous claim
blocks totaling 145 claims. The Cheechoo gold deposit, which is on
the main block of 121 claims, is located at 15 km to the south-east
of the Eleonore Gold Mine of Newmont Goldcorp.
About Sirios
Founded in 1995, Sirios Resources develops and
explores its own mining exploration projects. Pioneer in the
discovery of significant gold deposits in the Eeyou Istchee James
Bay region of Quebec, Canada, over the years, Sirios is focusing on
its flagship gold project Cheechoo, the 2016 discovery of the year
in Quebec.
Cautionary note regarding
forward-looking information
This news release contains "forward-looking
information" within the meaning of applicable Canadian securities
legislation based on expectations, estimates and projections as at
the date of this news release. Forward-looking information involves
risks, uncertainties and other factors that could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to, capital and operating costs varying significantly
from estimates; the preliminary nature of metallurgical test
results; delays in obtaining or failures to obtain required
governmental, environmental or other project approvals;
uncertainties relating to the availability and costs of financing
needed in the future; changes in equity markets; inflation;
fluctuations in commodity prices; delays in the development of
projects; the other risks involved in the mineral exploration and
development industry; and those risks set out in the Company’s
public documents filed on SEDAR at www.sedar.com. Although the
Company believes that the assumptions and factors used in preparing
the forward looking information in this news release are
reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
The estimate of Inferred Mineral Resources
mentioned in this press release conform to National Instrument
43-101 standards and was prepared by Pierre-Luc Richard, P. Geo.,
independent qualified person, as defined by NI 43-101 guidelines.
The effective date of the estimate is December 6, 2019. The
above-mentioned mineral resources are not mineral reserves as they
do not have demonstrated economic viability. The quantity and grade
of the reported Inferred Mineral Resources are conceptual in nature
and are estimated based on limited geological evidence and
sampling. Geological evidence is sufficient to imply but not verify
geological and grade or quality continuity.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Contact information : |
|
Dominique Doucet, President, CEO, Eng. |
|
ddoucet@sirios.com |
|
Tel.: (514) 510-7961 |
Website: www.sirios.com
|
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