Resource World Magazine

A P R I L / M A Y 2 0 1 6 www.resourceworld.com 45 MININg the lithium-bearing feldspar-like framework sili- cate, petalite (LiAlSi 4 O 10 ). The geological setting is similar to that of the pegmatite at the Tanco Mine, Manitoba. Petalite is coveted in glass and ceramic applications, and Avalon had originally done a pre-feasibility study hoping to serve companies such as Corning with local sources to improve thermal shock resistance in ovenware glass. However, now the market has shifted toward the Li-ion battery business. Although Tesla is basing its Li-ion battery fac- tory in Nevada near where lithium-bearing brines are mined, the industry is reconsidering high- purity minerals in hard-rock lithium sources, such as historical spodumene mines and pegmatites. The geology of the East Kemptville, Nova Scotia, indium-tin prospect is more of a tin-bearing gra- nitic greisen system similar to famous tin deposits in Cornwall, and hosts tin, copper, and zinc, as well as indium. Historically, it was mined for tin by Rio Algom. In the 2015-2016 field seasons the emphasis has been on diamond drilling to update mineral resource estimates. Both projects are work- ing toward Preliminary Economic Assessments (PEA) in 2016, leading toward developing a full feasibility study at East Kemptville for 2017. Avalon's initial NI 43-101 technical report for East Kemptville (2014) estimated mineral resources: indicated, 18.47 million tonnes aver- aging 0.176% tin, 0.173% zinc, and 0.064% copper; and inferred, 16.95 million tonnes aver- aging 0.148% tin, 0.122% zinc, and 0.062% copper, at a 0.10% tin cut-off grade (approxi- mately equivalent to what was believed to have been left unmined in 1992). Some of Avalon's metal and mineral holdings are waiting for conditions to become more favourable economically before proceeding further. Nechalacho has been taken as far as a completed feasibility study, but is now on hold because of declining demand and pricing for REEs, as well as the costs of developing a specialty processing plant for byproducts such as zirconium chemicals from the mineral zircon. Advances in process- ing technology could eventually bring down the CAPEX and OPEX to make Nechalacho a worth- while development project again. In addition, Avalon holds three other properties in Canada, Lilypad Lakes (Ontario) tantalum- cesium pegmatite; Miramichi (New Brunswick) tin-indium project; and Warren Township (Ontario) anorthosite (calcium plagioclase feld- spar) project. n sirios resources defining gold deposit near Éléonore Mine sirios Resources Inc. [SOI-TSXV; SIREF-OTC] continues to receive encouraging diamond drill results from the Cheechoo gold project in the James Bay region about 320 km north of Matagami, Québec. The company holds a 45% interest with Golden Valley Mines Ltd. [GZZ-TSXV; GVDI- OTC] holding 55%. Sirios can acquire the remaining 55% interest. Sirios is fortunate in that the Cheechoo Project is only about 10 km from the producing Éléonore gold mine of Goldcorp Inc. [G-TSX; GG-NYSE]. Éléonore, a major mine that began production in 2015, is expected to pro- duce approximately up to 600,000 ounces of gold per year for at least 15 years. Christian Guilbaud, VP of Corporate Development, told Resource World that the large Éléonore mill (7,000 tpd) could accommodate more ore and Goldcorp recently completed a $962,000 private placement in Sirios Resources which gives it a 9.9% ownership in the company. "In 2012, when we started drilling, we had to bring in the drill by helicopter, but now the project is road-accessible," explained Guilbaud. Drilling has been under way since last fall and, in December, Sirios reported intersecting three gold zones with the richest sections reaching up to 177.5 g/t gold. These zones returned assays that included 15.04 g/t gold over 12.35 metres, 15.61 g/t gold over 9.70 metres and 2.03 g/t gold over 14.35 metres. During the 2015 drilling, visible gold was in eight of the 11 drill holes, indicating coarse free gold. Drill results released in January also returned good assays such as 2.96 g/t gold over 31.5 metres that included 4.35 g/t over 20.5 metres; 7.28 g/t gold over 3.8 metres; and 4.18 g/t gold over 20.0 metres that included 86.00 g/t over 0.80 metres. Since drill results are still coming in, Guilbaud said that it has not yet been decided whether the project should be viewed as an underground operation or an open pit mine. "Most of our holes are at about 150 metres in depth – fairly shallow," said Guilbaud. "About a year ago our goal was to increase the grade which we have done successfully. We have found some of the keys to understanding the geological structure which enabled us to find the high-grade gold zones." "It's always tough to say if our planned step-out drill holes will inter- sect gold mineralization; however, we are currently drilling some wildcat holes about a kilometre away from the existing zone on the northwest side," said Guilbaud. "We can see visible gold in the core. The gold bear- ing area is proving to be bigger than we thought." He says that company geologists are now targeting a potential 3-5 million ounce gold deposit. "Right now we think the project has the capability of being a stand- alone project. We are an exploration company, but could be transformed into a mine builder if we find it more profitable for our shareholders. We are working towards what is hopefully a positive Preliminary Economic Assessment or Pre-Feasibility Study, when we would choose the best sce- nario for our shareholders," said Guilbaud. Sirios has a permanent exploration camp at the Cheechoo Project. The company has approximately 75 million shares outstanding. n

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