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Goldsource Mines Inc
Symbol GXS
Shares Issued 126,517,723
Close 2015-08-31 C$ 0.15
Market Cap C$ 18,977,658
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Goldsource Mines continues building at Eagle Mountain

2015-09-01 08:07 ET - News Release

Mr. Yannis Tsitos reports

GOLDSOURCE PROVIDES CONSTRUCTION UPDATE AT EAGLE MOUNTAIN GOLD PROJECT

Goldsource Mines Inc.'s construction at its Eagle Mountain gold project located in Guyana, South America, continues to progress well. As planned, the company anticipates commissioning for phase I production to take place during fourth quarter 2015. Phase I contemplates a 1,000-tonne-per-day open pit-gravity plant with estimated preproduction capital costs of $4-million (U.S.) to $5-million (U.S.) and postcommissioning cash operating costs of $500 (U.S.) to $600 (U.S.) per ounce of gold. All current plans are based on the preliminary economic assessment technical report prepared for the company, dated effective June 15, 2014, and filed Sept. 16, 2014, on SEDAR. The estimated preproduction capital costs of $4-million (U.S.) to $5-million (U.S.) have been revised down from the PEA stated preproduction capital costs of $5.9-million (U.S.). Further details on the PEA are also provided in the company's news release, dated July 31, 2014, available on the company's website. Please also refer to Goldsource's website for the company's management's discussion analysis for the six months ended June 30, 2015, for the details of the revised preproduction capital costs.

Yannis Tsitos, president, stated: "We are pleased with Eagle Mountain's construction progress with the ongoing shipments to site of the processing plant and equipment, and the testing of the secondary aggregate plant with possibly residual gold production. We fully expect to deliver the phase I construction on time and budget for fourth quarter 2015."

The most significant construction activities are as follows:

  • The gold processing plant (100 tonnes per hour), designed and constructed by Sepro Minerals Systems Corp., Langley, Vancouver, B.C., is to be delivered to Guyana in two packages, as follows:
    • Package No. 1 is in Guyana at Eagle Mountain or in storage nearby awaiting final site preparation (95 per cent completed).
    • Package No. 2 is to be delivered to Guyana in September, 2015 (fabrication 100 per cent completed).
  • Rehabilitation of the existing 10-kilometre road between Mahdia town and Eagle Mountain camp, including construction of eight new bridges (85 per cent completed). Road completion was delayed several weeks due to heavy seasonal rains. Dry season has started;
  • Procurement and purchase of major equipment, including the most recent acquisition of a dozer and two new 500-kilovolt-ampere generators (90 per cent completed);
  • Preproduction auger drilling program for confirmation and condemnation of plant site (100 per cent completed);
  • Recruitment of key operations personnel (60 per cent completed);
  • Site preparation of upgraded camp, plant, tailings area and initial mining area (50 per cent completed);
  • Procurement and purchase of secondary processing plant for exploiting existing old tailings area to provide construction aggregate with potential residual gold recovery (preliminary testing under way).

The qualified person under National Instrument 43-101 for this news release is N. Eric Fier, CPG, PEng, chief operating officer for Goldsource, who has reviewed and approved its contents.

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