Goldsource initiates pre-feasibility study on Eagle Mountain

Goldsource Mines Inc. (“Goldsource” or the “Company”) has announced that it has retained Tetra Tech Canada Inc. (“Tetra Tech”) of Vancouver, BC to complete an independent pre-feasibility study (“PFS”) for a large-scale (4,000 to 5,000 tonnes per day) open pit, gravity-cyanidation operation at its Eagle Mountain Gold Project (“Eagle Mountain”) in Guyana, South America. 

Ioannis Tsitos, president of the company, commented in a statement, “The Company’s overall objective for Eagle Mountain is to generate information in 2017 to support a large-scale low strip open pit-cyanidation operation in the near-future. Our main focuses today are on intermittently operating and collecting information on the “front-end” gravity plant for large-scale operating design with some gold production and expanding our current saprolite resources through low-cost shallow systematic drilling. A revised saprolite resource estimation is planned for Q4 2017. Based on the success of saprolite resource expansion, we are targeting completion of the PFS by Q2 2018. In parallel with the PFS, we will be working on changing our current medium-scale operating permit to large-scale.”

The company is targeting an expansion of the saprolite resources from 380,000 ounces of gold (of which 74,000 ounces of gold are currently classified as Indicated and 306,000 ounces of gold classified as Inferred) to an estimated 600,000 ounces of gold to support a large-scale operation. These resource estimations and target exclude “hard rock” resources located immediately below saprolite. For more information, please refer to the technical report available on the Company’s website titled “Preliminary Economic Assessment of Eagle Mountain Saprolite Gold Project”, dated Sept. 12, 2014.

Based on the success of saprolite resource expansion, the Company anticipates to budget and complete the PFS in several phases. For Phase I and 2, which the Company plans to complete by Q4 2017, Tetra Tech will be providing Independent Qualified Persons for reviews, site visits, QA/QC on current drill program, and a Technical Report for revised resource estimation. 

Other Corporate Updates

The Phase I pilot plant at Eagle Mountain continues to operate on an intermittent basis at a reduced average throughput rate. The Company expects minor gold production in Q2 2017 based on temporarily allocating heavy equipment to construct exploration roads and drill pads along with a tailings expansion, which is underway for increased capacity. The Marok pumping system and pilot plant are considered the “front-end” part of a potential large-scale operation. Ongoing collection of operating information on the pilot plant is critical for PFS work and anticipated large-scale operating design. 

The Company currently has no debt and US$1 million in available cash to support the above programs through 2017.

The Company has granted stock options to non-independent consultants exercisable for 200,000 common shares of the Company at a price of $0.13 per share for a five year term expiring May 30, 2022. Of the stock options granted, 100,000 will be subject to a 12‑month vesting schedule pursuant to which 25% shall vest on August 30, 2017 and a further 25% shall vest every 3 months thereafter until fully vested. These stock options granted are also subject to regulatory approval.            

The Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects for this news release is N. Eric Fier, CPG, P.Eng, and Chief Operating Officer for Goldsource, who has reviewed and approved its contents.