Sirios lifts gold grades by at least 20% at Cheechoo project in Quebec

[Ben Graham]

An update for Sirios Resources’ (TSXV: SOI) Cheechoo gold project in western Quebec raises the open-pit indicated grade by almost 20% and the inferred grade by almost 40%, while almost tripling inferred ounces. Shares rose.

Indicated resources now total 34.9 million tonnes grading 1.12 grams gold per tonne for 1.3 million oz. a 19% increase in the open-pit grade over the 2022 resource, Sirios reported Thursday. Pit-constrained inferred resources come to 38.2 million tonnes at 1.01 grams gold for 1.24 million oz., a 38% rise in grade.

Including the stope-constrained estimate, inferred resources now total 42.7 million tonnes at 1.23 grams gold for 1.68 million ounces. Cheechoo is near private miner Dhilmar’s Éléonore gold operation, about 1,250 km north of Montreal.

“The substantial increase in gold resources at Cheechoo reflects the dedicated efforts of our team since the last mineral resource estimate,” Sirios President and CEO Dominique Doucet said in a release. “The total resources now position the project as a highly compelling opportunity for mining development-just a few kilometers from a producing gold mine.”

Located just 10 km from Éléonore, which Newmont (NYSE: NEM, TSE: NGT) sold to Dhilmar last November, Cheechoo benefits from strong infrastructure in the prolific James Bay region, including roads, power and mill facilities.

Sirios shares gained 16% to C$0.07 apiece on Thursday morning in Toronto, for a market capitalization of C$22.4 million.

31-million-tonne target

An additional conceptual exploration target was identified at Cheechoo by consultancy PLR Resources while the update was being prepared, Sirios said. The new area is estimated to host between 31 million and 40 million tonnes grading 1.27 to 1.45 grams gold.

Its open-pit component comprises 25 million to 32 million tonnes at 0.9 to 1.05 grams gold; and the underground portion 6 million to 8 million tonnes of mineralization grading between 2.8 to 3.05 grams gold.

“We are especially enthusiastic about the growth potential represented by our consultants’ [exploration target]…an exciting prospect given that drilling to date has largely focused on near-surface zones,” Doucet said. “Sirios is now outlining a strategy to fast-track additional resource growth and advance the project toward the development stage.”

The resource update is based on 82,717 metres of drilling across 345 holes, including 8,660 metres since 2022.