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:

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.
    
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 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.
    
4. 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.
    
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 drill holes 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 to 2.71. A fixed density of 2.00 g/cm3 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 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.
    
9. The number of tonnes (metric) and ounces were rounded to the nearest hundred thousand.
    
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.

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

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.

Pit's plan view

Pit's plan view

Pit's section view

Pit's section view