Goldsource Mines Announces Upsize of Previously Announced Brokered Private Placement
VANCOUVER, BC – May 21, 2019 – Goldsource Mines Inc. (“Goldsource” or the “Company”) is pleased to provide an exploration update for the high-grade Salbora discovery (“Salbora”), which includes the results from the reprocessing and re-interpretation of the 2007 airborne magnetic and radiometric surveys. Also, a second diamond drill conractor is being mobilized to increase drilling at Salbora, located approximately 1.5 kilometres northwest of the main Eagle Mountain Gold Project deposit (“Eagle Mountain” or “Project”).
Yannis Tsitos, President, commented, “Given the positive airborne geophysics and the recently announced high-grade drill results, we are increasing our understanding of the geological potential of the Salbora area. The re-interpretation of the 2007 airborne magnetic and radiometric surveys suggest that Salbora is located within a corridor of strong structural control with several subparallel structures indicating the potential for multiple mineralized zones related to these structures. With a direct relationship of sulphide content to gold grade at Salbora, we have decided to deploy a ground IP survey to cover approximately five square kilometres to help identify sulphide-rich zones within 250 metres from surface. In addition, the Company will continue step out drilling from recently announced high-grade Salbora intercepts for additional diamond core drilling. The Company is targeting a drill program of between 4,000 to 5,000 metres and hopes to have this completed by end of Q3, 2019.”
Interpretation of Previous 2007 Airborne Geophysical Survey
The Company has recently completed a re-interpretation of a 2007 airborne magnetic and radiometric geophysical survey completed by IAMGOLD Corporation, previous owner of Eagle Mountain. Geophysics One Inc. of Ontario performed this work using the data package and the Company’s current in-house geology, to determine regional and local structures and lithologies for exploration targeting. Attached to this news release are the following figures showing selected maps:
- Figure 1 - Summary geophysical interpretation map, showing the current Salbora discovery area and the outline of the ground IP survey.
- Figure 2 - First vertical derivative of reduced-to-pole magnetic map with interpretation map.
- Figure 3 - Measured horizontal gradient map in the cross-line direction.
Key exploration information from this re-interpretation study are as follows:
- Steeply dipping non-mineralized dolerite dykes appear to be associated with strong linear magnetic responses, trending mostly North-East.
- A distinct NW-SE trend consisting of multiple subparallel lineaments effectively crosscuts the dolerite dykes. The Salbora discovery is located within this zone. This suggests the presence of a 400 to 500 metre wide by 3 kiliometre long structurally controlled zone oriented approximately 110 degrees. 3D magnetic modelling suggests that an intrusion is present at a depth of several hundred meters beneath the northern part of this zone.
- Various granitoid and mafic volcanic intrusions appear to be associated with most of the radiometric anomalies. Several are known and appear on the Company’s geological maps. At least two new intrusives have been identified in the Salbora area, which may be related to gold mineralization.
The Company plans to follow up on priority geophysical anomalies with ground IP and high resolution ground magnetics in Q2, 2019.
The proposed surveys will be completed by Matrix Geotechnologies Inc. of Ontario and will cover approximately five (5) square kilometres over the Salbora area (see survey area on Figure 1). The geophysical survey will consist of:
- Approximately 45-line kilometres of Gradient Time Domain Induced Polarization (“TDIP”)/ Resistivity survey, at 100 metres line spacing, and focus to explore the top 250-300 metres of ground.
- Approximately 55-line kilometres, including baselines and tie-lines of high-resolution ground magnetic survey over the same grid at 12.5 metres spacing.
- Approximately 30% of the entire grid and based on identified targets/anomalies by the TDIP and ground magnetics, will be covered by detailed IP profiles in the form of Pole-Dipole and Dipole-Dipole IP techniques.
The data will be compiled and used to determine drill hole targets during the remainder of Q2, 2019.
To date, Goldsource has completed 11 diamond core holes (1,423 metres), 14 sonic shallow core holes (161 metres), 113 shallow auger drill holes (436 metres) and 11 horizontal and vertical trenches (928 metres) at Salbora. Please refer to the Company’s 2018 news releases dated May 24, July 12, October 25 and the 2019 news releases dated January 23, and March 6, for previous results on Salbora, including the first six diamond drill holes. All results with gold mineralization are considered near surface and several drill holes ended in gold mineralization. Results for five core holes are pending assays and compilation with results to be reported in due course.
Previously planned diamond core drilling at Salbora (approximately 2,000 metres) has now been increased to between 4,000 and 5,000 metres (25 to 35 additional holes) of drilling over the next four months. The Company has engaged Orbit Garant Drilling Inc., a Canadian mining drilling company with extensive experience in Guyana, to assist with the increased drilling that is planned for the Company.
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, Executive Chairman and Chief Operating Officer for Goldsource, who has reviewed and approved its contents.
ABOUT GOLDSOURCE MINES INC.
Goldsource Mines Inc. (www.goldsourcemines.com) is a Canadian resource company working aggressively to develop its advanced-stage, 100%-owned Eagle Mountain saprolite and hard-rock gold project in Guyana, South America. From 2016 to 2017, through a gravity pilot plant initiative, the Company completed testing on gravity-only gold production and both dry and wet mining open-pit techniques. Goldsource is now focused on delivering feasibility studies to achieve large-scale gold production at Eagle Mountain. Goldsource is led by an experienced management team, proven in making exploration discoveries and in project construction.
|Ioannis (Yannis) Tsitos
President & Director
Goldsource Mines Inc.
|For Further Information:
Goldsource Mines Inc.
Contact: Ioannis (Yannis) Tsitos, President
Fred Cooper, Investor Relations
Telephone: +1 (604) 694-1760
Fax +1 (604) 357-1313
Toll Free: 1-866-691-1760 (Canada & USA)
Email: [email protected]
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
CAUTIONARY STATEMENT AND FORWARD-LOOKING DISCLAIMER
This news release contains “forward-looking statements” within the meaning of Canadian securities legislation. Such forward‑looking statements concern Goldsource’s strategic plans, timing and expectations for the Company’s exploration and drilling programs at Eagle Mountain, including the Salbora area; and information regarding high grade areas projected from sampling results and drilling results. Such forward‑looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among other things: conditions in general economic and financial markets; accuracy of assay results and availability of mining equipment; availability of skilled labour; timing and amount of capital expenditures; performance of available laboratory and other related services; and future operating costs. The actual results could differ materially from those anticipated in these forward‑looking statements as a result of the risk factors including: the timing and content of work programs; results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the uncertainties of resource estimations; receipt, maintenance and security of permits and mineral property titles; environmental and other regulatory risks; project costs overruns or unanticipated costs and expenses; availability of funds and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
Neither TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.