mobile menu
german
Goldsource Mines Inc.

2019

Goldsource Mines Inc. is working aggressively to develop its advanced-stage, 100%-owned Eagle
Mountain gold project towards low cost, Phase I production in H1 2015. The project has an existing NI 43-101 resource of 188,000 Indicated and 792,000 Inferred gold ounces, with strong potential to expand its resources. A Preliminary Economic Assessment (“PEA”) has been completed, which sets out the economic parameters for the project’s development. Eagle Mountain is located in Guyana, South America, a mining-friendly, English speaking jurisdiction with stable democracy based on British law. Goldsource Mines is led by an experienced management team, proven in making exploration discoveries, achieving construction on time and budget, and fast-tracking production.

Preliminary Economic Assessment (July 2014)
In July 2014, Goldsource Mines announced the summary results of its PEA for the near-surface oxide resources (“saprolite”) at its Eagle Mountain gold project, approximately 230 kilometres southwest of the Georgetown, Guyana. Conceptually, the PEA results suggest that the project has low capital and operating costs, minimized technical risk and a short development timeline. The NI 43-101 compliant PEA was prepared on behalf of Goldsource by A.C.A. Howe International Limited (“ACA Howe”) of Toronto, Canada.

Preliminary Economic Assessment Highlights
The PEA incorporates a gold price of $1,250 /oz Au:

  • Pre-tax Internal Rate of Return (“IRR”) of 84% and after-tax IRR of 63%.
  • Cash operating costs, exclusive of sustaining capital, for saprolite mine life averages $480 per ounce gold including a 15% contingency.
  • Total capital costs including all proposed expansions (Phase II, III & IV expansions) and sustaining capital are estimated at $24.2 million.
  • Phase I, pre-production capital costs of $5.9 million including a 15% contingency.
  • Conceptually, the first four years of gold production would be 5,600, 14,400, 21,600 and 28,800 ounces gold, respectively.
  • Life of mine production of an estimated 168,700 ounces gold from gravity-only processing at estimated 60% recovery.
  • Inventory of 161,900 oz Au in settlement ponds from gravity-only processing rejects for potential future reprocessing using standard technologies.
  • Not considered in the PEA are the in-situ “fresh-rock” resources of Indicated 2,331,000 tonnes @ 1.52 g/tonne Au containing 114,000 oz and Inferred 13,433,000 tonnes @ 1.13 g/tonne, containing 486,000 oz (both at 0.5 g/t Au cutoff).
Qualified Person (“QP”) For the PEA
Mineral Resource, Pit Design, Mine Planning, Financial Modeling, Supervising Mining Engineering ACA Howe International Limited,
Toronto, ON
Metallurgical Test Work, Processing Plant Design, Processing Capital & Operating Costs Met-Solve Laboratories Inc, Sepro Mineral Systems, Langley, BC

 

The Eagle Mountain mining and processing schedules are based on a phased-approach model with four phases proposed over four years. Phase I mining rates would be 1,000 tonnes per day (one 12-hour shift, 7-days per week) in year one ramping up to approximately 3,000 to 4,000 tonnes per day by year four. Conventional open cut mining of soft weathered rock (gold mineralized saprolite) is proposed using a team of excavators, bulldozers and wheel-loaders to excavate and separate materials within the open cut with downhill gravity transport by slurry to the processing facility. The stripping ratio is low and estimated at an average of 0.9:1 (waste:ore) over mine life. No blasting or truck hauling is required for mineralized saprolite.

With the current resource covering only a small portion of Eagle Mountain – 250 hectares inside the 5,050-hectare property – there is excellent potential for expansion. The deposit remains open in three lateral directions and at depth, showing strong mineralization along its edges.

 

Project Location and Infrastructure

  • Project is located 230 km SW of capital Georgetown, Guyana and is accessible by existing roads.
  • Commercial airport at Mahdia Township, 45 min. flight from Georgetown. 7 km from Eagle Mtn.
  • Located 45 km from historic Omai gold mine which produced est. 4 million oz of Au from 1993 to 2005.

Description: Guyana Location.jpg

Eagle Mountain has excellent access and infrastructure. There is an existing road to the property and a major road to Georgetown is just 5 km away. A small airport at Madhia Township is within 7 km of Eagle Mountain and waterways are 30 km from the property.

 

Eagle Mountain Fully Permitted for Mining Activities

In August 2014, a Medium Scale Mining Permit was granted to Kilroy Mining Inc. for operations on a 250 hectare portion of Goldsource’s Eagle Mountain gold deposit, located within the approximate 5,050 ha Eagle Mountain prospecting license. The Permit grants permission to mine gold, diamonds, precious metals and precious minerals within the Permit area. The Eagle Mountain prospecting license is held by Goldsource’s 100%-owned subsidiary in Guyana, Stronghold Guyana Inc. (“Stronghold”). As a medium scale mining permit is required under Guyana law to be held by a Guyanese national, Stronghold has entered into agreements with Kilroy, a private arm’s length Guyanese company pursuant to which Stronghold and Kilroy will jointly operate the Property. Kilroy is the holder of the Permit and has granted to Stronghold exclusive rights to conduct mining operations on the Property including any additional areas acquired by Kilroy. Stronghold will fund all expenditures on the Property and receive 100% of all revenues, subject to applicable government royalties and a 2% net smelter return royalty to Kilroy as compensation for its participation.

 

Strategic Business Combination Unearths Eagle Mountain’s Potential

In February 2014, Goldsource Mines completed a business combination agreement with Eagle Mountain Gold Corp. (TSX-V:Z), now a wholly owned GXS subsidiary.

The strategic amalgamation has created a low-cost, quick  to free cash flow consolidation vehicle with significant internally financeable growth, built upon a high-quality gold project with well-defined resources in mining-friendly Guyana. The new Goldsource Mines boasts a leadership team with extensive management experience in low-cost execution and staged development in the Americas.

The business combination was approved by 99.8% of tendered Eagle Mountain shares at a special meeting of Eagle Mountain shareholders (including IAMGOLD Corporation). In addition, it received support from all local Guyanese stakeholders and authorities.

Key GXS Shareholders  
Management ~5%
Omai Gold Mines Ltd., a 95% owned
subsidiary of IAMGOLD Corporation

 


8%

 

2014 Business Plan

  •  Successfully completed Amalgamation process between Goldsource Mines Inc and Eagle Mountain Gold Corp (99.8% voted in favor…)
  • Successfully completed private placement (Feb 28, 2014)
    • $1.5 million financing oversubscribed, closed $2.4 million
  • Complete PEA and announce results
  • Medium-scale mining permit received in August 2014 – arrangement announced in August 2014
  • Raise $7.0 - $7.5 million for project development and construction financing (in progress).
  • Pre-production and construction of facilities over a period of six months. Includes rehabilitation of the access road, dredging and preparation of tailings settling ponds, construction of the modular processing facility, initial mining equipment purchases, and preproduction development and infrastructure requirements.
  • Targeting initial (Phase I) production by Q1/Q2 2015.
    • Phase I: 1,000 tpd/ app. 6,000 oz Au in first 12 months.
  • Four-year phased expansion to be supported by internally generated cash flow.

 

Eagle Mountain Project: Five-Year Strategy
Management has a well-defined strategy to scale gold production at Eagle Mountain:

  • Become a low cost gold producer in the Guyana Belt with significant free cash flow.
  • Use cash flow to expand production capacity from 1,000 to 4,000 tpd.
  • Assess potential to treat gravity tailings inventory to increase recovery and production.
  • Acquire similar projects within the Guyana Belt to apply the same development model.
  • Support increased local employment and community benefits.
  • Transition from medium scale to large scale mining license.

N. Eric Fier, CPG, P.Eng., Qualified Person, Chief Operating Officer is also the Qualified Person responsible for the preparation of the technical information included in this web site and for supervision of field activities related to the Company projects.