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Goldsource Mines Inc
Symbol C : GXS
Shares Issued 251,299,976
Close 2019-05-21 C$ 0.175
Recent Sedar Documents

Goldsource completes Salbora surveys reinterpretation

2019-05-21 10:58 ET - News Release

Mr. Ioannis Tsitos reports

GOLDSOURCE ANNOUNCES EXPLORATION UPDATE AT SALBORA DISCOVERY AND POSITIVE AIRBORNE GEOPHYSICS

Goldsource Mines Inc. has released an exploration update for the high-grade Salbora discovery, which includes the results from the reprocessing and reinterpretation of the 2007 airborne magnetic and radiometric surveys. Also, a second diamond drill contractor is being mobilized to increase drilling at Salbora, located approximately 1.5 kilometres northwest of the main Eagle Mountain gold project deposit.

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 reinterpretation 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 reinterpretation of a 2007 airborne magnetic and radiometric geophysical survey completed by Iamgold Corp., 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.

Key exploration information from this reinterpretation study is as follows:

  • Steeply dipping non-mineralized dolerite dikes appear to be associated with strong linear magnetic responses, trending mostly north to east.
  • A distinct northwest to southeast trend consisting of multiple subparallel lineaments effectively crosscuts the dolerite dikes. The Salbora discovery is located within this zone. This suggests the presence of a 400- to 500-metre wide by three-kilometre long structurally controlled zone oriented approximately 110 degrees. Three-D magnetic modelling suggests that an intrusion is present at a depth of several hundred metres 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 induced polarization 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 square kilometres over the Salbora area. The geophysical survey will consist of:

  • Approximately 45 line kilometres of gradient time domain induced polarization/resistivity survey, at 100 metres line spacing, and focus to explore the top 250 metres to 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 per cent of the entire grid, 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.

Drilling update

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 and Oct. 25, and the 2019 news releases, dated Jan. 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, PEng, executive chairman and chief operating officer for Goldsource, who has reviewed and approved its contents.

About Goldsource Mines Inc.

Goldsource Mines is a Canadian resource company working aggressively to develop its advanced-stage, 100-per-cent-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.

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