Took a Flyer on Sirios Resources (SOI.V)
Last week I had a couple guests on shows, Andre Gaumond and John Kaiser that are both following a small exploration company in Quebec with recent news of high-grade gold hits. I invite guests because I value their opinions and I was really impressed with their views on the company. High-grade gold always catches my attention, in one of the best mining jurisdiction adds to my interest, having geological similarities to the high-grade Eleonore Mine owned by Goldcorp, with plenty of drill holes pending, added up to me taking a flyer and wanting to explain why to readers.
The Eleonore Mine is one of the best gold mines found in Canada in the past 15 years or so, it was found by Virginia Gold Mines who was bought out by Goldcorp that developed it into a mine. Andre Gaumond led Virginia Gold Mines, so when a junior exploration company announced high-grade gold hits on the same day I was interviewing Andre, I had to ask him if he was following Sirios Resources. A few things stood out when he commented including; Eleonore and Sirios’ Cheechoo gold project have geological similarities, and where Sirios hit is in close proximity to Eleonore, and Sirios hit a thick intersection of high-grade gold.
Sirios Resources originally found its way to my radar screen as it was a pick that John Kaiser had told us about on past shows. He presented the project in excellent context prior to the drill results, when Sirios announced they hit 20.3 of 12.08 g/t gold at their Cheechoo project, I decided I wanted to take a flyer on the stock, I got some yesterday at $0.225, and start coverage.
In the interviews with John Kaiser, he had explained the project is 10km from the Eleonore mine and the geological similarities of structural contact with the sediment package where Sirios just hit. Cheechoo has all the hallmarks of the kind of project that can get the attention of the gold mining industry and the community that follows gold discovery plays.
The thick intersection of high-grade was actually partial results from drill hole No. 52 that was prioritized to be processed in the lab as they really liked what they saw. These results come from their winter drilling program, and they still have more drill holes pending. I will be watching for the results from the remaining drill holes, but felt confident that even though the Cheechoo project is at early stages it is well worth taking a flyer.
Next up, I will continue the due diligence process and contact management of the company regarding an interview and offer them an opportunity to become part of my website sponsorship program. Sirios is the perfect kind of company for my program, I’ve had a lot of success in the past having picked Virginia and Osisko, both big successes in Quebec, so I have a strong audience following my work from those past picks. Sirios is the kind of company that I know my audience will appreciate and with them at early stages of a new discovery they have a lot of drilling and work ahead which are the kind I like to stick with while they move forward.
My reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisors.
In closing, I’ve been fortunate to get into some impressive projects over the years at early stages, I’m really excited about the Cheechoo project as I think it will help Sirios gain a large following of investors in early stage gold discoveries. I’m seeing a revival of interest in gold exploration, as the industry is in dire need of new discoveries, Sirios has great timing to be getting high-grade gold hits with their drilling.
All the best,
Allan Barry Laboucan
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