Sirios announces the maiden mineral resource estimation for the Cheechoo Gold Deposit
MONTREAL, Dec. 11, 2019 (GLOBE NEWSWIRE) — 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.”
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.