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Sirios Resources is evaluating a standalone operation at its Cheechoo project in Quebec’s James Bay region, sized around a mill processing 20,000 to 25,000 tonnes per day. The company says a viable first-stage project should recover at least 200,000 ounces of gold a year for 10 years; a preliminary economic assessment is targeted for about the second quarter of 2027. Those are planning assumptions, not a confirmed mine plan or production forecast.
Sirios Resources is assessing its Cheechoo gold project in Quebec’s James Bay region as a potential standalone mine designed around a mill processing 20,000 to 25,000 tonnes per day and annual gold recovery of at least 200,000 ounces for 10 years. The company has targeted a preliminary economic assessment (PEA) around Q2 2027, but the production level is a planning threshold, not an approved project forecast.
The proposed scale marks a shift toward evaluating how the deposit might be developed, after years of exploration and resource work. Chief executive Jean-Félix Lepage told The Northern Miner in September that the company was focused on building Cheechoo as a greenfield, standalone project. Sirios has not said that a mine has been approved, nor has it published the economic results that would show whether the contemplated scale is viable.
Sirios completed the first stage of its current drilling program on Sept. 28, reporting 45 holes totaling 23,037 metres in a Sept. 29 update. The stage had initially been planned for 25,000 metres. Assay results were expected to continue through October and into early November, according to Lepage. The drilling is intended largely to test and potentially upgrade mineralized areas that do not have enough drill density to qualify as resources, while also examining the higher-grade Eclipse zone and rocks beyond the deposit’s main tonalite host.
The company reported several high-grade intervals, including 6.5 metres grading 39.94 grams of gold per tonne in hole CH26-337 and 12.5 metres grading 9.07 grams per tonne in CH26-345. Sirios cautioned that reported drill lengths may not represent true widths; those widths remain unknown. The intervals are exploration results and do not by themselves establish mineable reserves or expected production.
The Scale Behind Cheechoo’s Study
A target of at least 200,000 ounces per year gives investors and local stakeholders a preliminary sense of the scale Sirios is testing. It also sets out a threshold the company says a viable first development stage should meet, rather than a production commitment. The PEA is expected to examine the project’s potential economics and development configuration; those findings will be needed before the proposal can be assessed as a prospective operation.
Cheechoo’s location may shape that analysis. The project is less than 15 kilometres from Dhilmar’s Éléonore mine and has road access, while regional hydroelectric infrastructure could provide a power option. Sirios has mentioned a possible connection toward the Eastmain-1 substation, about 50 kilometres away. These are factors for study, not confirmed supply arrangements. Sirios says it is not counting on using Éléonore’s processing plant.
The scale also matters because the project’s resource base and the proposed annual output are different measures. A resource estimate describes mineralized material classified under stated technical criteria; it does not establish that all of it can be economically mined. Costs, recovery rates, mine design, infrastructure needs, permitting and financing will affect whether the production threshold can be supported.
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From Resource Work to Economic Studies
Sirios’s July 2025 estimate reported 35 million indicated tonnes grading 1.12 grams of gold per tonne, containing 1.26 million ounces, and 42.7 million inferred tonnes grading 1.23 grams per tonne, containing 1.69 million ounces. The inferred category included 4.5 million underground tonnes grading 3.09 grams per tonne for 446,000 ounces. These are resource figures, not mineral reserves or a statement of how much gold could ultimately be produced.
The company expects a new resource estimate in the fourth quarter using results from the first drilling stage. Lepage did not give an ounce target for that update. Sirios said the first-stage work is aimed mainly at resource growth, while a second drilling stage of about 12,000 metres is scheduled to begin in January 2027 and is expected to focus more on step-outs and regional targets. The company’s broader planned drilling total is 35,000 metres.
The project’s development focus followed Sirios’s February acquisition of OVI Mining, backed by Osisko Development. The transaction brought Lepage into the chief executive role and added Osisko chairman Sean Roosen and vice-president Laurence Farmer to Sirios’s board. Sirios also hired mining engineer Daniel Deschênes as vice-president of projects to lead the PEA and later development work. The company says a $25-million financing in March, followed by $3.5 million from warrant and option exercises by May, funds work through the PEA without a near-term financing.
“So far we’re really focused on building it as a standalone.”
— Jean-Félix Lepage, Sirios Resources CEO, speaking to The Northern Miner
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Key Mine Assumptions Remain Untested
Cheechoo has not been approved for construction, and Sirios has not established that the proposed operation can recover at least 200,000 ounces annually for a decade. The company has not yet released a PEA with projected capital costs, operating costs, recovery rates, mine life or economic returns. The stated output and processing capacity are concepts being considered, not final design parameters.
It is also unclear how much the ongoing drilling will change the resource estimate, what portion of the resource could support an eventual mine plan, or whether the underground component would be included in an initial development stage. Reported drill intervals have unknown true widths. Power arrangements, permitting requirements, construction timing and any potential agreements related to nearby infrastructure also remain to be established.
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Drilling Results and the 2027 PEA
Sirios expected remaining assays from the first drilling stage through October and into early November, and plans to complete a new resource estimate in the fourth quarter. The company has scheduled a further drilling stage of about 12,000 metres for January 2027, with more emphasis on step-outs and regional targets. Results from that work are expected as the PEA advances during 2027.
The next major project milestone is the PEA, targeted for around the second quarter of 2027. It is expected to assess the open-pit-led development concept and consider underground potential. Sirios shareholders were also due to vote at an Oct. 30 meeting on a proposed 15-for-one share consolidation and a name change to Sirios Mining; both proposals require shareholder approval and compliance with TSX Venture Exchange requirements.
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Key Questions
Is Sirios committed to producing 200,000 ounces of gold annually?
No. Sirios describes at least 200,000 ounces a year as the recovery level it believes a viable first-stage project should achieve. It is a planning threshold, not an approved production forecast.
When is the Cheechoo economic assessment expected?
Sirios is targeting a preliminary economic assessment around Q2 2027. The assessment will test the project concept; its results have not yet been published.
What is the current estimated gold resource at Cheechoo?
The July 2025 estimate reported 1.26 million ounces indicated and 1.69 million ounces inferred. Resource estimates are not mineral reserves and do not establish that the gold can be mined economically.
Could Cheechoo use infrastructure near the Éléonore mine?
Sirios has cited road access and the region’s hydroelectric network as potential advantages, including a possible connection toward the Eastmain-1 substation. The company says it is not counting on using Éléonore’s processing plant, and no power supply arrangement has been confirmed.
What drilling work is planned next?
Sirios expects a new resource estimate in the fourth quarter using first-stage drilling results. A second stage of about 12,000 metres is scheduled for January 2027, with a greater focus on step-outs and regional targets.
Source: rss
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