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Goldsource Mines Inc
Symbol GXS
Shares Issued 390,847,109
Close 2021-03-29 C$ 0.11
Recent Sedar Documents

Goldsource drills 51 m of 2.02 g/t Au at Eagle Mountain

2021-03-30 07:49 ET - News Release

Mr. Steve Parsons reports

GOLDSOURCE DRILLING IN OUNCE HILL AREA AT EAGLE MOUNTAIN INTERCEPTS 51 METRES (44 M ETW) GRADING 2.02 GPT GOLD FROM SURFACE

Goldsource Mines Inc. has provided additional infill and expansion drill results for the company's 100-per-cent-owned Eagle Mountain gold project in Guyana, South America. Newly reported results for resource conversion represent 16 core holes totalling 1,205 metres (see attached tables) drilled from December, 2020, to February, 2021, in the Ounce Hill and Bacchus areas of the Eagle Mountain deposit.

Highlights (Eagle Mountain deposit)

  • Ounce Hill
    • Results for nine core holes totalling 651 metres (see "Eagle Mountain deposit -- Ounce Hill infill intercepts" table).
    • Infill drilling in the Ounce Hill area has continued to deliver gold grade thicknesses that are greater than previous drilling.
    • EMM21-009 intersected 51.0 metres (estimated true width (ETW) of 44.0 metres), grading 2.02 grams per tonne gold from surface. EMM21-009 has extended the high-grade area, previously defined by drill holes EMM21-007 and 008, 50 metres farther to the east. Holes EMM21-007 and 008 intersected 42.0 metres (ETW of 34.0 metres), grading 20.38 g/t gold and 30.0 metres (ETW of 24.0 metres), grading 3.41 g/t gold, respectively, from the surface and in saprolite (see Feb. 8, 2021, news release). Unlike surrounding holes, mineralization in EMM21-009 has continued into the underlying fresh rock by 22.5 metres with a grade of 2.69 g/t gold.
  • Bacchus
    • Results for seven core holes totalling 554 metres (see "Eagle Mountain deposit -- Bacchus infill and expansion intercepts" table).
    • Expansion drilling in the Bacchus area adjacent to the contact of granodiorite with a mafic volcanic unit has intersected up to four subhorizonal mineralized horizons (zones 1 to 4) within 75 metres of surface. The addition of more subhorizontal zones opens the possibility of new extensional targets to the northwest in an area where zones 1 and 2 are expected to be eroded away. This area is now a target for resource expansion, testing for near-surface extensions of zones 3 and 4.
    • In the upper zone 1, infill hole EMD20-150 intersected 21.0 metres grading 1.44 g/t gold and EMD20-149 intersected 37.5 metres grading 1.05 g/t gold.

These results were not included in the updated mineral resource estimate (MRE) announced on Feb. 22, 2021, for which the cut-off date for assays was Nov. 6, 2020. The company has continued drilling beyond this date with three rigs currently active at the site and is planning a second resource update later in 2021. The four primary objectives for the 2021 drill program are unchanged, as follows:

  1. Infill drilling to upgrade a significant portion of the mineralization currently classified as inferred to the measured and indicated categories. Reclassification to be used as the basis for a prefeasibility study, which is targeted to be delivered in 2022;
  2. Testing for new lateral extensions of the subhorizontal zones of the Eagle Mountain deposit, notably to the north, west and southwest currently outside of the Feb. 22, 2021, MRE outline;
  3. Follow-up exploration of several new target areas along the prospective Salbora-Powis trend, such as the Toucan, Powis, Ann and Montgomery prospects where the potential exists for Salbora-style mineralization;
  4. Using the above information, announce another MRE update in the second half of 2021.

Steve Parsons, PEng, and chief executive officer of Goldsource, commented: "Not only is the 2021 drill program confirming the continuity of mineralization in the Ounce Hill and Bacchus areas of the Eagle Mountain deposit, but it is also delivering several enhancements. Higher grades in the Ounce Hill area, with continuous gold mineralization over the reported intersections, underscores the prospectivity of Ounce Hill in terms of expanding the higher-grade footprint. For the Bacchus area, the discovery of up to four mineralized horizons or zones with the stepout drilling to the northwest is a noteworthy development. While our understanding of the granodiorite and mafic contact is evolving, the possibility exists for further expansions to the north and northwest direction along the lateral extent of the Eagle Mountain deposit. This potential will be tested in the coming months.

"As we progress our exploration objectives, including the recently reported MRE update, and identify new target areas for exploration, the favourable development characteristics of the Eagle Mountain project come further into focus. These include a growing footprint of mineralization and tangible opportunities for phased development. We look forward to further exploration updates and the next mineral resource update later in 2021."

The attached tables show the most significant results (uncut, undiluted).

             EAGLE MOUNTAIN DEPOSIT -- OUNCE HILL INFILL INTERCEPTS

                         From               To          Drilled             Gold
Hole ID (1)                (m)              (m)         int. (m)            (g/t) (3)

EMM21-009                 0.0             51.0             51.0             2.02
EMM21-010                 0.0             33.0             33.0             0.95
Incl.                    25.5             33.0              7.5             2.61
and                      43.5             46.5              3.0             0.52
EMM21-011                 0.0             30.0             30.0             0.96
and                      39.0             52.0             13.0             1.15
Incl.                    39.0             43.5              4.5             2.92
and                      49.5             52.5              3.0             0.71
EMM21-012                 0.0             25.5             25.5             0.69
and                      28.5             30.0              1.5             0.75
and                      39.0             42.0              3.0             0.69
EMM21-013                 6.0             24.0             18.0             1.75
and                      27.0             37.5             10.5             0.49
EMM21-014                 6.0             16.5             10.5             1.53
EMM21-015                 7.5             27.0             19.5             0.58
and                      36.0             43.5              7.5             1.03
EMM21-016                21.0             22.5              1.5             0.67
and                      51.0             66.0             15.0             1.51
EMM21-017                22.5             49.5             27.0             1.19
Incl.                    39.0             49.5             10.5             1.35

Note: All numbers are rounded.                       

(1) EMM defines core holes completed by drilling contractor.  

(2) True widths are estimated to be 70 to 100 per cent of drilled widths.

(3) Saprolite and hard-rock cut-off grades of 0.3 and 0.5 g/t Au, respectively.

              EAGLE MOUNTAIN DEPOSIT -- BACCHUS INFILL AND EXPANSION INTERCEPTS

                            From                  To             Drilled                Gold
Hole ID (1)                   (m)                 (m)            int. (m) (2)           (g/t) (3)

EMD20-146                    0.0                 7.5                 7.5                0.51
EMD20-149                    9.0                46.5                37.5                1.05
EMD20-150                    0.0                21.0                21.0                1.44
and                         42.0                43.5                 1.5                0.59
and                         76.5                79.5                 3.0                5.32
EMD20-151                    0.0                30.3                30.3                0.92
Incl.                        0.0                19.5                19.5                1.26
EMD20-152                    3.0                25.5                22.5                0.76
and                         40.5                48.0                 7.5                0.56
and                         67.5                69.0                 1.5                0.88
and                        103.5               112.5                 9.0                0.67

Note: All numbers are rounded.                       

(1) EMD defines core holes completed by the company's diamond rig.  

(2) True widths are estimated to be 70 to 100 per cent of drilled widths.

(3) Saprolite and hard-rock cut-off grades of 0.3 and 0.5 g/t Au, respectively.

All sample preparation and geochemical analyses were completed by Actlabs Guyana Inc. in Georgetown, Guyana. Holes EMD20-147 and EMD20-148 intersected mineralization below the company's saprolite cut-off grade of 0.3 g/t Au.

Eagle Mountain deposit -- Ounce Hill and Bacchus area geology

Geologically, the Ounce Hill and Bacchus areas, located in the northeast of the Eagle Mountain deposit, are represented by two continuous subhorizontal mineralized horizons or zones (zones 1 and 2) along shallowly dipping shear structures, which feature a mylonitic base in areas of high shearing (see also Feb. 8, 2021, news release). The infill drilling in these areas has provided further support for the geologic model; however, with localized higher grades in Ounce Hill and new extensional targets at Bacchus.

At Ounce Hill, the increased length and grade of mineralization, specifically in the area defined by drill holes EMM21-007, 008 and 009, are currently believed to be associated with the convergence of zone 1 and 2 with no or limited unmineralized material separating the zones. This high-grade feature will be the subject of further drilling and analysis in the coming months as drills move back into this area of the Eagle Mountain deposit.

At Bacchus, the presence of additional mineralized subhorizontal zones below that of zone 1 and 2 present opportunities for lateral extensions to the north and northwest in the area where the main Eagle Mountain deposit granodiorite unit contacts the adjacent mafic volcanic units, into which granodiorite was intruded. The lower of these subhorizontal zones (zones 3 and 4), while currently narrower in drill hole EMD20-152, is expected to trend closer to the surface farther downslope and to the northwest. Evidence from drilling at the Friendly area of the Eagle Mountain deposit shows a continuation of mineralization into the mafic volcanic units at the contact resulting in layered granodiorite and mafic volcanic units, both with gold mineralization. The contact zone along the north and northwestern flank of the Bacchus area will the subject of drilling later in 2021 to test for this potential.

Historic drill holes for the Ounce Hill and Bacchus areas are presented in the "Eagle Mountain deposit -- Ounce Hill historic intercepts" and "Eagle Mountain deposit -- Bacchus historic intercepts" tables.

             EAGLE MOUNTAIN DEPOSIT -- OUNCE HILL HISTORICAL INTERCEPTS

                          From                To           Drilled              Gold
Hole ID (1)                 (m)               (m)          int. (m) (2)         (g/t) (3)

EM032                      0.0               3.6               3.6              0.58
And                       12.0              32.0              20.0              0.88
EM033                      0.0              30.0              30.0              0.81
EM034                     25.5              29.5               4.0              1.40
EM99-50                   10.8              34.5              23.7              0.92
EM99-51                   19.3              22.5               3.2              1.04
EM99-52                    0.0              27.7              27.7              5.31
EM99-53                    0.0              22.5              22.5              1.57
EM99-54                   38.5              39.3               0.8              3.14
EMD08-13                   7.3              20.8              13.5              0.59
and                       41.8              45.3               3.5              0.63
EMD08-14                   7.3              29.0              21.7              0.75
EMD11_054                  0.0              18.0              18.0              1.12
EMD11_055                 22.5              27.0               4.5              1.58
and                       61.0              63.0               2.0              0.50
EMD11_056                  0.0              28.0              28.0              1.81
EMD11_057                  1.5              10.5               9.0              0.65
EMD11_058                  7.5              31.0              23.5              0.73
EMD11_059                  0.0              29.0              29.0              0.72
and                       65.0              67.3               2.3              1.78
EMD11-060                  0.0              34.5              34.5              0.84
EMD11_061                  6.5              25.0              18.5              0.79
EMD11_062                  5.4              19.5              14.1              1.82
EMC17-045                  1.0               4.0               3.0              0.91
EMC17-048                  0.0              15.0              15.0              1.05
EMC17-049                  0.0               6.7               6.7              0.81
EMC17-050                  0.0               2.4               2.4              1.82
EMC17-051                  0.0              19.0              19.0              3.04
EMC17-054                  0.0              15.0              15.0              0.70
EMM20-004                 15.0              21.0               6.0              0.72
EMM21-005                   15              31.5              16.5              0.84
EMM21-006                  6.0              30.0              24.0              0.76
EMM21-007                  0.0              42.0              42.0             20.38
Incl.                     21.0              42.0              21.0             39.00
And Incl.                 39.0              42.0               3.0            205.98
EMM21-008                  1.5              31.5              30.0              3.41

Note: All numbers are rounded.                       

(1) EMC17 defines shallow percussion drilled saprolite holes by Goldsource in 2017.
    EMD08 defines diamond core holes completed by Iamgold in 2008. 
    EMD11 defines diamond core holes completed by Stronghold in 2011.
    EM99 defines diamond core holes completed by Omai Gold Mines in 1999.
    EM0 defines diamond core holes drilled by Golden Star Resources in the 1990s.
    EMM21 defines core holes completed by a drilling contractor in 2021.

(2) True widths are estimates to be 70 to 100 per cent of drilled widths.

(3) Historic cut-off grade of 0.5 g/t Au.

               EAGLE MOUNTAIN DEPOSIT -- BACCHUS HISTORICAL INTERCEPTS

                          From                To           Drilled              Gold
Hole ID (1)                 (m)               (m)          int. (m) (2)         (g/t) (3)

EMD07_02                  20.5              21.5               1.0              1.15
EMD07_04                   9.3              39.9              30.6              0.80
And                      111.7             112.9               1.2              0.59
And                      135.6             153.4              17.8              1.03
EMD07_05                   5.9              15.7               9.8              0.96
EMD08_15                   0.0              12.0              12.0              0.80
EMD08_16                   0.0              17.0              17.0              0.93
EMD11-115                  3.9              13.5               9.6              1.31
And                       70.8              74.9               4.1              0.79
EMC17-033                  5.0              17.0                12              1.31
EMC18-059                  2.0               5.0                 3              2.04
EMD20-138                 22.5              31.5               9.0              0.41
EMD20-139                 42.0              45.0               3.0              9.88
EMD20-140                  0.0               4.5               4.5              1.70
And                       46.5              48.0               1.5              1.07
EMD20-141                  0.0               6.0               6.0              0.43
And                       55.5              66.0              10.5              1.45
EMD20-142                  0.0               4.5               4.5              0.44
And                       21.0              31.5              10.5              0.60
EMD20-143                  0.0               1.5               1.5              0.60
EMD20-144                  0.0               1.5               1.5              0.77
And                        6.0              13.5               7.5              0.59
EMD20-145                 12.0              15.0               3.0              0.62

Note: All numbers are rounded.

(1) EMD07 defines diamond core holes completed by Iamgold in 2007.
    EMD08 defines diamond core holes completed by Iamgold in 2008.
    EMD11 defines diamond core holes completed by Stronghold in 2011.
    EMC17 defines shallow percussion drilled saprolite holes by Goldsource in 2017.
    EMC18 defines shallow percussion drilled saprolite holes by Goldsource in 2018.
    EMD20 defines diamond core holes completed by Stronghold in 2020.

(2) True widths are estimates to be 70 to 100 per cent of drilled widths.

(3) Historic cut-off grade of 0.5 g/t Au.

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 vice-president of finance for Goldsource, who has reviewed and approved its contents.

About Goldsource Mines Inc.

Goldsource Mines is a Canadian exploration and development company focused on the 100-per-cent-owned Eagle Mountain gold project in Guyana, South America. The Eagle Mountain project contains 23 million tonnes grading 1.14 g/t gold for 848,000 ounces gold in indicated resources and 25 million tonnes grading 1.09 g/t gold for 868,000 oz gold in inferred resources, with additional exploration targets and tangible opportunities for production scalability. The company is led by an experienced management team, proven in making precious metals exploration discoveries and executing phased project development in the Americas.

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