MONTREAL, QUEBEC–(CCNMatthews – April 7, 2006) – SIRIOS RESOURCES INC.(TSX VENTURE:SOI) reports that its partner DIOS EXPLORATION INC. (TSX VENTURE:DOS) received positive diamond exploration results on part of the large PONTAX jointly owned property, James Bay, QC, 350 kilometres north of Matagami along the paved road going to Radisson. The PONTAX property also contains significant gold glacial dispersal trains uncovered under the till sampling program as released last January. The PONTAX property is also located 75 kilometres southwest of the Eleonore gold deposit recently bought by Golcorp.

Following these results, SIRIOS wishes to increase its interest to 100% in a significant part of the property for gold exploration whereas DIOS wishes to pursue diamond exploration on part of the property.

Consequently, DIOS officially advised SIRIOS on April 3, 2006 of its intent to transfer back to SIRIOS part of the property for a book value of $70,211 and a 1% NSR that can be bought back for $1,000,000. DIOS wishes to keep its 50% interest in 299 claims of the original 917 claim property. SIRIOS will issue to DIOS 206,500 Common Shares at $0.34, subject to the Boards’ and regulatory approval.

As reported last January, on a total of 145 samples assayed, 37 (26 per cent) heavy mineral concentrates graded more than 10 parts per billion in gold including 19 (13 per cent) grading more than 100 parts per billion, with a maximum value of 820 parts per billion. Several gold anomalies are grouped and up-ice of lake sediment gold anomalies up to 43 parts per billion gold. In a regional context, such results, are qualified as very encouraging. The study of the glacial dispersion, and the till content is continuing and suggests a proximal source.

Under the agreement with DIOS as released on June 8, 2005, the processing for kimberlite indicator minerals (diamond) was paid by DIOS, while the cost incurred for gold and base metals assays was paid by SIRIOS. Depending on the results, if the project was to focus specifically on gold, SIRIOS had the option to buy back DIOS’ share, by repaying in cash or shares (acquisition and exploration costs at book value) and vice versa, and DIOS was to keep a 1% NSR on the claims transferred back to Sirios.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.


For more information:
Dominique Doucet, CEO
Phone: 514-510-7961

Print Friendly, PDF & Email