Cheechoo project

With gravity gold recovery rates ranging from 70% to 76%, Cheechoo is a world-class potential project that represents the most promising gold discovery in Sirios’s history. It is one of the only projects currently in the resource estimation phase in Quebec.

Discovered in 2010 and composed of 145 claims, since its prospecting results yielded numerous grab samples assaying between 0.1 and 2.6 g/t Au.

Target(s): Gold Number of claims: 145
Ownership: 100% Sirios Approx. area: 73 km2

Summary

The project in brief

  • 195 NQ diamond drilling for 50,000 m
  • 3 diamond drill holes PQ for 450 m
  • 3,000 m of channelling
  • 70-76% gravimetric recovery
  • Large low-grade gold envelope (between 0.3 g/t and 0.8 g/t)
  • 867.1 g/t over 0.5 m
  • 41.0 g/t over 8.0 m

Location

Located in the Eeyou Istchee James Bay region of Quebec, the Cheechoo property covers an area of 75 km² within two non-contiguous claim blocks. The main block of 124 claims is located within NTS sheet 33B12, adjacent to the Eleonore Mine property. The second block of 21 claims is located within NTS sheet 33C09, approximately 20 km to the west of the main block of claims.

Geological context

The project area straddles the suture zone between the Opinaca meta-sedimentary subprovince (2700 to 2648 Ma) and the southern segment of the La Grande volcano-plutonic province (2880 Ma). It is composed of both granitoids typical of the La Grande sub-province and metatexite typical of the Opinaca sub-province. The geology of the property consists of tonalite, meta-wacke, paragneiss, granite and pegmatite. The gold mineralization is primarily hosted in a tonalite that is silicified and albite rich, with the presence of moderate to strong parallel quartz veining (centimetric veins or veinlets). The host rocks contain a very low sulfide content (<1%, pyrrhotite-arsenopyrite-pyrite) along with variable amounts of amphibole, biotite, chlorite, diopside, tourmaline and scheelite. A preliminary study of thin sections has shown that most of the gold occurs as free coarse grains outside the sulfide minerals. The above characteristics are typical of Reduced Intrusion Related Gold Systems. For more information, please consult the scientific article published by Geological Survey of Canada in 2018 on Cheechoo.

History

Mining claims and royalties

The mining rights were acquired by Sirios in 2004. In 2005, Sirios acquired thousands of claims in the area immediately east and southeast of what is now Goldcorp’s Eleonore mine. In the same year, Golden Valley Mines Ltd. (“Golden Valley”) signed an option agreement with Sirios to acquire a 60% interest in the Cheechoo and Sharks projects (later merged as Cheechoo) totaling then nearly 600 claims. In 2009, Golden Valley had earned a 60% interest in Cheechoo after completing $ 4M of work on the property. Sirios returned to 100% ownership of the property in June 2016, following the completion of $ 5M in exploration work and the issuance of 4,148,374 common shares to Golden Valley as per the terms of a second agreement in 2012. Golden Valley retains a gold royalty ranging from a 2.5% to 4% NSR based on the gold price and a 4% NSR for all other mineral products extracted from the Cheechoo project.

Exploration works

The first gold showings on the property were discovered by Sirios during a prospecting program in 2010. Numerous samples of granitic rocks (tonalite) taken from outcrops or angular erratic boulders returned assays up to 2.6 g/t Au. The property was drilled for the first time by Sirios at the end of 2012. By the end of 2017, 140 NQ sized boreholes had been completed on the property for a cumulative total of 35,023 meters. Detailed geological mapping and channel sampling were conducted at several areas, including Main Stripping Area, Trench 2-2, 6-9, November and Dyke MaficOn the Main Stripping Area, nearly 2,000 meters of channel samples were taken and assayed in 2016 and 2017.

Drill holes #141 to 198 (58 holes, DDH 2018 zoom-in, DDH 2018 zoom-out) were completed in May 2018, yielding an additional 15,720 metres drilled and bringing the cumulative total to 50,743 metres. All drill holes are of NQ calibre* except three drill holes, #195, 197, 198 that are of PQ calibre*. The systematic coverage of the central gold area measuring approximately 500 metres by 500 metres was completed at a drill spacing of 50 metres. In addition, a downhole logging survey was completed on over thirty drill holes, bringing the total of sampled holes to 57.

Assay results of twenty one drill holes of 2018 and those from the extension of drill holes #125 (125E) and #20 (20E) were published in the press release of June 6, August 8, August 15 and August 21. Results of 9 additional drill holes recently received are currently being interpreted and results will be released shortly. Assay results of 28 other drill holes are still pending.

*The diameter of a PQ caliber drill core is 8.5 cm while the NQ caliber one is 4.76 cm.

Previous work and results

The first gold showings on the Cheechoo property were discovered during a prospecting program by Sirios in 2010. These showings were discovered in an area located up ice of a large gold anomaly in soils delineated on the neighboring Eleonore South property currently owned by Goldcorp, Eastmain Resources and Azimut Exploration. Numerous samples of granitic rocks (tonalite) taken from outcrops and angular erratic boulders assayed up to 2.6 g/t Au. The property was drilled by Sirios for the first time at the end of 2012.

By the end of 2017, the following fieldwork had been completed on the property:

  • 140 NQ-size drill holes for a cumulative total of 35,023 meters.

  • From 2012 to 2017, prospecting, trenching, detailed geological mapping and channel sampling in several areas, including Main Stripping Area, Trench 2-2, 6-9, November and Dyke Mafic. On the Main Stripping Area, nearly 2,000 meters of channels were sampled and assayed in 2016 and 2017.
  • Preliminary metallurgical tests (2015)
  • Downhole logging surveys conducted in 23 holes totaling 7,500 meters (2016-17).
  • Ground magnetometer and induced polarization surveys (2012).
  • Detailed helicopter-borne magnetometer surveys with  flight line spacings of 50 m (2014) and 25 m (2017) .
  • Soil (humus) and till sampling surveys (2010, 2015, 2016-2017).

Summary of Results

Low-Grade Gold Envelope

The work done to date in the main drilled area gives an idea of the scale of the mineralized system, extending for more than 1,400 m along the tonalite/meta-sediments contact. (press release February 8, 2018). Close to the contact, gold can be found in both the meta-sediments and tonalite. The presence of gold mineralization has also been recognized up to 500 m away from the contact, towards the interior of the intrusion and tested to a depth of more than 650 m below the surface. The recent prospecting work, as well as completed drill holes to the west of the main drilled area indicate the possibility that the low-grade mineralized envelope can be extended to the west towards the Éclipse area and to the north-west towards the Dyke Mafic area.

 

High-Grade Gold Intervals, Jordi Area

High-grade gold intervals are frequently intersected within the low-grade envelope. However, the geological continuity of these high-grade intervals remain difficult to confirm with the current drill hole spacing of 50 m. However, the mapping of the main stripped area and trenches has allowed us to confirm the geological continuity of the veins or networks of mineralized veinlets (with visible gold), sometimes for more than 80 m. This continuity is generally parallel to the observed mineral foliation.

So far, only the Jordi Zone shows an recognizable geological continuity. It is distinguishable by the systematic presence of a gold bearing pegmatite and quartz-feldspar veins with visible gold. The zone is broadly folded and shows an undulating continuity both laterally and vertically, thus making it difficult to represent the vein in two-dimensional sectional or longitudinal views. The central part of this zone measures 5 to 10 m wide, has a sub-horizontal dip, whereas its up dip and downdip extensions are steeper, as illustrated on the sections. The Jordi Zone is continuous for more than 300 m laterally and for nearly 200 m downdip. Drill holes # 10, 17, 25, 78, 109, 112, 123, 124, 125 all intersected the zone with grades up to 56.2 g/t Au. The zone remains open at depth.

 

Mineralized Zones at Depth

Intervals of medium to high-grade gold were intersected at depth in the tonalite. This included; drill hole #82 with 7.4 g/t Au over 3.1 m, within a broader zone of 2.0 g/t Au over 16 m at a depth of more than 600 metres and drill hole #98 that intersected 53.8 g/t Au (17.4 g/t Au, cut grade) over 3 m,  including a higher grade section of 159.3 g/t Au over 1.0 m at a depth of more than 400 metres. Gold mineralization was also observed in meta-sedimentary rocks in the deeper drill holes, where drill hole#98 assayed 4.4 g/t Au over 8 m, included within a broader zone of 1.7 g/t Au over 34.9 m at a vertical depth of 505 metres. One hundred meters to the east, drill hole #82E intersected 4.6 g/t Au over 2.5 m, included within a broader zone of 1.1 g/t Au over  24 m at a vertical depth of 491 metres.(ref.: press release May 30, 2017)

 

Area Éclipse (previously known as the West area)

Drill hole #95, located more than 750 metres west of the main stripped area, intersected a vein corresponding to a similar vein in a boulder, interpreted to be proximal in origin, that assayed up to 113.5 g/t Au. The drill hole intersected an interval of 11.9 g/t Au over 13.5 m, which included a quartz vein with visible gold which assayed 65.1 g/t Au over 2.1 m. Drill hole #99 intersected a zone close to surface, which included 11.2 g/t Au over an interval of 10.6 m. This zone included two 1-meter intervals with visible gold that assayed 63.3 g/t Au and 50.5 g/t Au. The strike extent of the gold bearing vein or veins in this area has not yet confirmed, an “en echelon” configuration is possible. Different from the main drilled area, the Éclipse area includes veins with very high gold grades. These veins are however hosted in a tonalite with a significantly lower background gold content than the low gold grade envelope of the main area. The Éclipse area represents the northern continuity of the Moni showing identified on the neighboring Éléonore Sud property of Goldcorp, Eastmain and Azimut.

 

Area of drill holes #47 and 48 (drill holes #63, 64, 66, 68) and of till anomaly (drill holes #69, 71, 73)

Seven exploration drill holes were undertaken in the areas of drill holes #47-48, that each yielded intervals grading between 5 and 10 g/t Au over 1 m, and a gold bearing till anomaly defined in 2015 located 1.5 km and 3 km north-west of the main stripped area. In the first area, assay results up to 3.4 g/t Au over 1.1 m and 1.9 g/t Au over 3.3 m were obtained in drill holes #63 and #64 respectively. In the area of the second till anomaly, the three drill holes did not identify the source of the gold, but drill hole #73 intersected anomalous gold, including 0.8 g/t Au over 5.4 m. Additional till sampling was done in 2017 to better define the source of this gold anomaly.

 

Surface channel sampling

On the Main Stripped Area, the cumulative total of channel samples was more than 1,992 linear metres, resulting in a weighted average grade of 0.4 g/t Au. This represents a surface area of approximately 10,000 m². This includes an area of 8,500 m² along the tonalite/meta-sediments with a weighted average of 0.5 g/t Au.

On the 6-9 trench, a surface area of approximately 334 m², a total of 177 linear metres of channels were collected of which 157 metres were within the tonalite. Channel samples in the tonalite, representing an area of approximately 298 m², yielded a weighted average of 0.6 g/t Au.

Additional channel samples were collected in the November Trench, previously sampled in 2016. The cumulative total of channel samples in this trench is currently 36.1 metres and yielded 1.4 g/t Au over a horizontal length of 26.1 meters.

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