Sirios Resources Inc. (“Sirios”, “SOI”, “company”) announced a maiden resource estimate of 1.6 million ounce (“Moz”) at 0.69 gpt gold on its flagship asset, named the Cheechoo gold property, located 10 – 15 km from Newmont Goldcorp’s (TSX: NEM) Éléonore gold mine. NEM is also Sirios’ largest investor, and holds 17.7% of the total outstanding shares.
We were pleased with the resource estimate as our preliminary estimate, at the time of our initiating report on SOI in March 2019, was 1.3 Moz at 0.60 gpt gold.
Two additional positive aspects of the resource are – 1) a low strip ratio of 1.1:1, and 2) attractive gold recovery rates of 85% to 88% through gravity recovery. In September 2019, the company announced that metallurgical tests indicate potential for further improvement in recovery to up to 97%, from a combination of gravity separation and cyanidation leaching on the gravity tailings.
The company recently raised $3.33 million (including $1.85 million from flow-through). NEM invested another $1.08 million.
2020 plans include a 5,000 m diamond drilling program, additional metallurgical tests, and continuation of impact studies. Management expects to commence a Preliminary Economic Assessment (“PEA”) in 2021.