Sirios announces a significant increase in its resource estimate for the Cheechoo gold project

MONTREAL, Nov. 17, 2020 (GLOBE NEWSWIRE) -- 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.

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."

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:

1. 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.
   
   
2. 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.
   
   
3. 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.
   
   
4. 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.
   
   
5. 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.
   
   
6. 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.
   
   
7. 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.
   
   
8. 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.
   
   
9. The number of metric tons (tonnes) and ounces were rounded to the nearest hundred thousand and nearest thousand respectively.
   
   
10. CIM definitions and guidelines for Mineral Resource Estimates have been followed.
    
    
11. 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) 918-2867
ddoucet@sirios.com
website: www.sirios.com

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.