Sirios announces a significant increase in its resource estimate for the Cheechoo gold project
November 17 2020 - 8:14AM
Management of
SIRIOS RESOURCES
INC. (TSX-V: SOI) is pleased to
announce the updated resource estimate for the Cheechoo gold
property, 100% owned by Sirios, located in Eeyou Istchee James Bay,
Quebec. Following last winter's drilling campaign totaling 5,237 m,
an updated resource estimate added an additional
355,000
ounces of gold to its initial resource estimate,
representing
an increase of 22%.
The new resource estimate (Table 1) for this
open-pit model includes an inferred resource of
1.96
million ounces of gold, contained
in 93.0 million tonnes at an average grade of 0.65 grams of gold
per tonne.
Table 1: Conceptual
pit-constrained Inferred Mineral Resource
Estimateusing a 0.25 g/t Au cut-off
for the Cheechoo Project |
|
|
|
|
|
|
|
Classification |
Tonnage |
|
Grade |
|
Ounces |
|
(Mt) |
|
Au (g/t) |
|
Au (oz) |
|
|
|
|
|
|
|
|
Inferred |
93.0 |
|
0.65 |
|
1,955,000 |
|
This resource estimate update, located entirely
within the limits of the Sirios property, is presented at different
cut-off grades in Table 2, which the content is for guidance only
and should not be interpreted as NI 43-101 approved, and therefore
not to be relied upon.
Dominique Doucet, President and CEO of Sirios,
states: "We are very pleased with the updated mineral resource
estimate on Cheechoo. With relatively little drilling and at a low
cost, we have significantly increased the size of the mineral
resource on the property, demonstrating that the project improves
every time work is carried out. The Cheechoo project has additional
favorable characteristics including, among others, excellent gold
recovery, a very low stripping ratio, (1.1), proximity to existing
infrastructure, as well as excellent exploration potential. We are
very confident that future work will continue to increase the value
of the project."
Table 2: Cheechoo Project cut-off grade sensitivity
table |
|
|
|
|
|
|
|
|
Cut-off Grade Au (g/t) |
|
Tonnage |
|
Grade |
|
Ounces |
|
|
(Mt) |
|
Au (g/t) |
|
Au (oz) |
|
|
|
|
|
|
|
|
|
0.50 |
|
40.4 |
|
1.04 |
|
1,357,000 |
|
0.40 |
|
55.1 |
|
0.88 |
|
1,568,000 |
|
0.30 |
|
77.9 |
|
0.73 |
|
1,822,000 |
|
0.25 |
|
93.0 |
|
0.65 |
|
1,955,000 |
|
0.20 |
|
110.2 |
|
0.59 |
|
2,079,000 |
|
Figure 1 Plan view. The black-outlined
conceptual pit contains the first resource estimate of 1.6 M oz of
gold. The green-outlined grey conceptual pit contains the new
resource estimate of 1.96 M oz of gold is available
at
https://www.globenewswire.com/NewsRoom/AttachmentNg/4e276542-e78e-47e8-a4b6-5887280bfc8c
The mineral resource estimate was 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 295 diamond drill
holes totaling 67,652 metres and 385 channel samples totalling
3,214.88 metres which were completed by Sirios between 2012 and
April 2020. 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 October 31, 2020.
In addition to the resources mentioned above,
there is significant potential to increase
the mineral resource on the Cheechoo
property, should an agreement be reached with the owners of the
neighboring property allowing the company to gain access to this
material.
Notes to the MRE Table:
- The independent qualified person
for the 2020 MRE, as defined by NI 43-101 guidelines, is Pierre-Luc
Richard, P. Geo., of BBA Inc. The effective date of the estimate is
October 31, 2020.
- 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 in situ for an open-pit scenario and are considered
to have reasonable prospects for economic extraction. Although
calculated cut-off grades range from 0.25 to 0.26g/t, a cut-off
grade of 0.25 g/t Au was used for the MRE. The pit optimization was
done using Deswik Mining Software Version 2019.4.514. 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 1,450, CAD:USD
exchange rate = 1.32, 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 6.8.3 and is based on 295 surface drillholes and 385 surface
channel samples, with a total of 50,896 assays. The resource
database was validated before proceeding to the resource
estimation. Grade model resource estimation was calculated from
drillhole 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 drillhole database was August 11, 2020.
- 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 drillholes
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 t/m³ to 2.71 t/m³. A fixed
density of 2.00 t/m³ 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 drillholes 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 metric tons (tonnes)
and ounces were rounded to the nearest hundred thousand and nearest
thousand respectively.
- 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.
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 Cheechoo Property
Sirios’ 100% owned Cheechoo property is located
in the Eeyou Istchee James Bay region of Quebec, approximately 800
km north of Montreal, 200 km east of Wemindji and less than 10 km
from Newmont’s Eleonore gold mine.
About Sirios
Pioneer in the discovery of significant gold
deposits in the Eeyou Istchee James Bay region of Quebec, Canada.
Sirios focuses its work mainly on its Cheechoo gold discovery,
while actively exploring the high auriferous potential of its other
properties.
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 October 31, 2020. 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:Dominique Doucet,
President, Eng.Tel: (514)
918-2867ddoucet@sirios.comwebsite:
www.sirios.com
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