Management of SIRIOS RESOURCES INC. is pleased to announce that, following fieldwork undertaken on the CHEECHOO project in 2012, and in accordance to the agreement with its partner, Sirios has increased its interest in the project to 45%.
Sirios and Golden Valley Mines (TSX VENTURE:GZZ) ("Golden Valley") signed an agreement in June 2012 for the Sharks and Cheechoo properties ("the Cheechoo Project"). Sirios has until June 15, 2013 to indicate its intent to acquire the total remaining 55% interest ("notice of option") from Golden Valley. Sirios would then have until December 31, 2013 to issue shares to Golden Valley for a value of the lesser of 9.9% of its share capital or $1M. In addition, Sirios will have a period of three years from the date of the notice of option to complete around $4M in exploration expenditures, considering the completed exploration expenses as at December 31, 2012, in addition to paying $500,000 in cash or in shares to Golden Valley over a period of three years. Sirios is the operator of the project.
Golden Valley keeps a net return royalty for gold varying between 2.5% and 4% depending on the price of gold as well as a 4% of the net returns from all other mineral products mined or removed from the Cheechoo Project. In particular, the royalty for gold would be 3% for a price of gold between $1,200 and $2,400 per ounce.
Sirios recently obtained very encouraging drill results from the first three holes of a drilling campaign. The holes demonstrated the presence of large gold zones with minimum lengths varying between several tens of metres to the entire length of certain drill holes of almost 200 metres, with grades varying between 0.21 and 1.09 g/t in gold (see February 12, 2013 press release). The last three drill holes (#6 to #8) did not yield any significant results. Refer to the December 31, 2012 Management Report available on Sirios' website for more information on the drill results. The drill holes completed by Sirios on the Cheechoo gold project are located at less than 15 km from the future Eleonore gold mine, currently under construction by a subsidiary of producer Goldcorp.
This press release was prepared by Dominique Doucet, P. Eng., President of Sirios, Qualified Person pursuant to National Instrument 43-101.
Source: http://sirios.com/