MONTREAL, QUEBEC--(Marketwire - June 15, 2012) - SIRIOS RESOURCES INC. ("Sirios") (TSX VENTURE:SOI) has signed an agreement with Golden Valley Mines Ltd.("Golden Valley") allowing the start of an exploration program of at least $800,000 on the Cheechoo and Sharks gold properties ("Cheechoo Project"). The main portion of this project is adjacent to the east of the property on which the Eleonore gold mine is being built by Les Mines Opinaca Ltd., a subsidiary of Goldcorp Inc. This future gold mine has an estimated annual production of 600,000 ounces of gold, over a period of around 15 years beginning in 2014.
The agreement allows Sirios to increase its interest in the Cheechoo Project, which is currently 40%, to 45% by undertaking fieldwork for a minimum of $800,000 by the end of 2012. Moreover, the completion of this program then gives Sirios until June 15, 2013 the possibility to inform Golden Valley of its intent to acquire the total remaining 55% interest from Golden Valley. In that case, Sirios would have to pay or issue to Golden Valley the lesser of 9.9% of its share capital or $1M in cash or shares. Sirios would also have to undertake $4.2M in exploration work and pay $500,000 in cash or in shares to Golden Valley over a period of three years.
Should Sirios acquire full ownership of the Cheechoo Project, Golden Valley would keep a net return royalty relevant to gold mineral products varying between 2.5% and 4% depending on the price of gold as well as a 4% of the net returns from all mineral products mined or removed from the Cheechoo Project.
Sirios plans on beginning the fieldwork over the next few weeks with line cutting and a geophysical survey followed by a diamond drilling campaign. The fieldwork is mainly concentrated on a region of around 12 km2, adjacent to the Eleonore South property currently held and explored by Mines Opinaca, Eastmain and Azimut. This region is located around 10 km south-east of the future Eleonore gold mine.
Dominique Doucet, president of Sirios declared: "Our upcoming geophysical survey and drilling program will test the significant gold anomalies in rock and soil discovered during our 2010 fieldwork. This past fieldwork demonstrated that a section of the Cheechoo Project could be the source of certain gold soil anomalies from the neighbouring Eleonore South property."
Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.