Fundamental Research was spot on ... but Mr.Market is still Fundamental Research was pretty spot on for alot of things. Now let's see if Mr.Market will
follow in the next two years ... https://www.baystreet.ca/articles/research_reports/fundamental_research/Sirios-Mar-2019.pdf "We believe this is very encouraging for Sirios as Cheechoo could be a strong acquisition
target if Sirios is able to delineate a 1+ Moz deposit."
CHECK "We estimate the global average of the project could be between
0.6- 1.2 g/t. This is in line with the grades of well known reduced intrusion related deposits, listed below:
Victoria Gold’s (TSX: VIT) Eagle project in Yukon has reserves of 116 Mt at 0.66
gpt,
Kinross’s (TSX: K) Fortknox mine in Alaska has reserves of 268 Mt at 0.4 gpt"
We have 7i Mt and 0.69 g/t
Partially CHECK "Based on a 500 m x 500 m area, and a conservative depth of 200 m (the company has drilled
up to 300 m depth), we estimate a preliminary speculative resource of 66 Mt. An average
grade of 0.6 gpt, implies potential for 1.27 Moz of contained gold."
We have 0.69 g/t and 1.6 millions + 0.25%
CHECK " In addition, cyanidation leaching on the gravity tailings showed potential recovery of 92%-93%,for a total expected recovery rate of over 90%. The company is currently conducting
additional metallurgical testing (from 5.5 tons of drill core samples)"
Sirios obtains up to 97% gold recovery including 88%gravity CHECK NGC improved it's participation to 19.9% (maximum). I suppose they have the geologist and the scientific staff to justify this investment
CHECK " Based on an average ratio of $50 per oz, we are assigning a fair value estimate of $0.44
per share on Sirios. We are initiating coverage with a BUY rating."
NOT DONE As i said before, big investors are still skeptical with gold below 1550$ (resistance from 2011-13).
In conclusion:
They have to increase the tonnage:
- (between the south area and the grey pit zone) and at depth
- To the west including the eclipse zone
- improve the cut-off grade with a large bulk sample
- Have an agreement with the neighbors to start the pit on their property.
Don't worry, the gold located on their side will still belong to them but i suppose they
will come to a $ arrangement. AZM and ER have other priorities and certainly need $ with Elmer/Rex and Clearwater. IF Eleonore South contains a "critical mass" of minerealization, i suppose they would be drill overthere but what do i know ...
So:
2020- drilling
2020- Metallurgic test (Large Bulk Sample)
2020 – PFS
2021 - FS
Witn a price of gold above 1700$+ at the end of 2021, let's see if NGC will make an offer that Sirios will accept ...