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Goldsource Mines Inc.


Goldsource Mines Inc. (the “Company” or “Goldsource”) is working aggressively to develop its advanced-stage, 100%-owned Eagle Mountain gold project towards low cost, Phase I production in Q2 2016. The project has an existing NI 43-101 resource of 188,000 Indicated and 792,000 Inferred gold ounces (effective date November 21, 2012), with strong potential to expand its resources. A Preliminary Economic Assessment (“PEA”) has been completed (effective date June 15, 2014), which sets out the economic parameters for the project’s development. On December 30, 2014, the Company completed a $7.1 million equity financing, enough to conclude Phase I of project construction. Eagle Mountain is located in Guyana, South America, a mining-friendly, English-speaking jurisdiction with stable democracy based on British law.

Goldsource is led by an experienced management team, proven in making international exploration discoveries, financing, achieving construction on time and budget, and fast-tracking production.

Fully Financed for Phase I Project Construction

In December 2014, Goldsource concluded a non-brokered private placement for a total of $7,070,725 through the sale of 47,138,166 units at a price of $0.15 per unit.  Each unit consists of one common share and one-half of one common share purchase warrant of Goldsource, with each whole warrant being exercisable for one common share of Goldsource at a price of $0.25 per share for a term of 3 years.

Proceeds from the private placement will be used to fund all development and capital costs for Phase I mine and processing plant construction for the Company's Eagle Mountain Gold Project.  Based on the PEA dated September 12, 2014 and filed September 16, 2014 on SEDAR at, the Phase I development consists of initially a 1,000 tonnes per day open pit - gravity plant ramping up to 3,000 to 4,000 tonnes per day (phased approach) for an 8 year mine life, with estimated preproduction capital costs of US$5.9 million and cash operating costs of $480 per ounce of gold. The Company is debt free as of December 31, 2015.

"This financing will provide Goldsource with sufficient funds to complete the Phase I mine development and place the Eagle Mountain Gold Project into production.  Sustaining capital and future expansions are intended to be paid for through operating cash flow. The project has additional development phases outlined in the PEA to increase production once initial success in Phase I is achieved," said Yannis Tsitos, President.  "We are very excited at the prospect of Goldsource becoming a low cost producing gold company in 2016."

Preliminary Economic Assessment (Effective date June 15, 2014)

The Company cautions that the PEA is preliminary in nature in that it is based largely on Inferred Mineral Resources which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Management’s production decision for the project is not based on a feasibility study of mineral reserves demonstrating economic and technical viability. This project has a much higher risk of economic or technical failure and may adversely impact the Company’s future profitability.

In September 2014, Goldsource filed a  PEA technical report titled “Preliminary Economic Assessment of the Eagle Mountain Saprolite Gold Project, Guyana, 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 summary results of the PEA were previously announced in the Company’s news release dated July 31, 2014 and there are no material differences in the Mineral Resources or PEA results between the technical report and the news release. The PEA report, dated September 12, 2014 with the effective date June 15, 2014, was prepared in complaint with National Instrument 43-101 on behalf of Goldsource by A.C.A. Howe International Limited (“ACA Howe”) of Toronto, Canada. The report can be found on this website and under the Company’s profile on SEDAR at

July 2014 Updated Eagle Mountain Resource Estimate
(Cut-off of 0.5 g/t Au)
Au Grade (g/tonne)
Contained Ounces Au
Used in PEA
Fresh Rock
Fresh Rock
Eagle Mountain (2012) and Goldsource (2014) Mineral Resource (0.5 g/t cut-off)
Technical Report Mineral Resource Update, dated November 21, 2012, by ACA Howe; and PEA, June 15, 2014 by ACA Howe.

*Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Indicated Resources.

Preliminary Economic Assessment Highlights

The PEA incorporates a gold price of $1,250 /oz Au. Estimate includes:

  • 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 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 cut-off).

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.

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 hectare 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.

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.

Work site

Location and Infrastructure

The Eagle Mountain gold project is located approximately 200 km southwest of Guyana’s capital, Georgetown, and 45 km from the historic Omai Gold Mine, which profitably produced an estimated four million ounces of gold at an average grade of approximately 1.4 g/t, from 1993 to 2005. Historical production from the general Madhia area is estimated at over one million ounces of gold from alluvial and eluvial sources. A number of successful gold mining operations are currently underway in Guyana.

Goldsource  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.

Goldsource is leveraging its enviable location in Guyana in the completion of project development, followed by Phase 1 Gold production in Q2 2016.

Description: Guyana Location.jpg

Strategic Business Combination Unearths Eagle Mountain’s Potential.

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

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 boasts a leadership team with extensive management experience in low-cost execution and staged development in the Americas.

Key GXS Shareholders
Management & Board of Directors
Donald Smith Value Fund (NY, USA)
Omai Gold Mines Ltd., a 95% owned subsidiary of IAMGOLD Corporation

Eagle Mountain Project: Five-Year Strategy

Management has a well-defined strategy to scale gold production 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.