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Goldsource Mines Inc
Symbol GXS
Shares Issued 315,277,110
Close 2020-05-19 C$ 0.145
Recent Sedar Documents

Goldsource drills 27 m of 1.72 g/t Au at Friendly

2020-05-20 11:44 ET - News Release

Mr. Ioannis Tsitos reports

GOLDSOURCE ANNOUNCES EXPANSION OF FRIENDLY PROSPECT AT EAGLE MOUNTAIN

Goldsource Mines Inc. has released additional drill results from the Friendly prospect located immediately north of the Eagle Mountain gold project in Guyana, South America. Results announced today represent 10 core holes over 2,065 metres. Combined with previous drilling by Goldsource and historic drilling totalling 17 core holes (1,670 metres) at the Friendy prospect, this suggests potential for an initial strike of 250 metres long by 500 metres wide which includes numerous near vertical, closely-spaced, and parallel gold mineralized structures. The prospect remains open along strike, to depth, and appears be connected to the Bottle Bank area, located 500 metres to the south, which is part of Eagle Mountain (see attached Figures).

Yannis Tsitos, President, commented, "The expansion of the Friendly prospect was the result of management's focus to identify new resource targets near Eagle Mountain using a compilation of previous drill results and recent geophysical surveys. Friendly is conveniently located near Eagle Mountain and it represents another potential source of both saprolite and hard rock mineralized material. Recent discoveries and expansions of gold mineralization are key to achieving our resource target of 1.3 to 1.6 million ounces of gold. After the recent discovery of the high-grade, north-south trending, 2-kilometres long, auriferous Salbora-Toucan-Powis structural zone, drilling at Friendly has initially tested our interpretation of a second subparallel structural zone. Additional drilling is planned for Friendly, following the lifting of COVID-19 restrictions, which will focus on shallower near surface saprolite mineralization."

The most significant results for this release are holes EME19-023 which intersected 27.0 metres grading 1.72 grams per tonne ("gpt") gold (or "Au") and EME19-025 which intersected 73.5 metres grading 0.50 gpt gold. The following table shows the most significant results (uncut, undiluted):

Friendly Prospect New Hole Intercepts: 
Hole ID   From (m) To (m) Drilled Interval (m)  Au (g/t)
 EME19-021   59.5   61.0           1.5             1.08    
 EME19-023  109.5  111.0           1.5             0.61    
            121.5  148.5          27.0             1.72    
            211.5  231.0          19.5             0.62    
 Includes   225.0  231.0           6.0             1.32    
            252.0  256.5           4.5             0.98    
 EME19-024   13.0   25.0          12.0             0.50    
 Includes    22.0   25.0           3.0             1.10    
            112.5  115.5           3.0             3.34    
 EME19-025   97.5   99.0           1.5             0.94    
            144.0  145.5           1.5             1.60    
            159.0  232.5          73.5             0.50    
 Includes   159.0  180.0          21.0             0.69    
    And     207.0  231.0          24.0             0.89    
 Includes   207.0  216.0           9.0             1.73    
    And     225.0  231.0           6.0             0.85    
 EME19-026  259.5  261.0           1.5             0.54    
 EMD20-099   46.5   51.0           4.5             0.78    
 EMD20-100   1.5    3.0            1.5             0.82    
             9.0    10.5           1.5             0.72    
             25.5   28.5           3.0             2.46    
 EMD20-101   6.0    7.5            1.5             1.01    
 EMD20-108   42.0   52.5          10.5             0.87    
            150.0  151.5           1.5             0.69    

All sample preparation and geochemical analyses were completed by Actlabs Guyana Inc. in Georgetown, Guyana. EME19-022 intersected mineralization below the Company's cut off grade of 0.3 gpt Au. Holes EMD20-102 to 107 were drilled in the Toucan prospect area. Holes EMD20-102 to 105 have already been announced on April 14, 2020.

Geologically, the Friendly prospect is dominated by brecciated and silicified structures within mafic volcanic and granitoid units. Gold mineralization is within subvertical parallel silicified zones with chlorite and pyrite-filled breccias. Preliminary geological and geophysical interpretation suggest that Friendly is along a north-south corridor which passes through Bottle Bank, 0.5 kilometres to the south, a gold mineralized area on the western edge of the Eagle Mountain 2014 resource outline (see attached Figures). Geophysical studies indicate semi-continuous sulphide anomalies over significant parts of this 1.2-kilometre long north-south corridor. The breccia structures and silicification with blebby pyrite containing gold are characteristics shared by both Salbora and Toucan.

Previous work at the Friendly prospect was completed as follows;In 1997, Golden Star Resources ("GSR") drilled one hole in the Friendly prospect. Partial core has survived and had been re-assayed by IAMGOLD Corporation ("IAMGOLD") in 2008. IAMGOLD completed five drill holes between 2008 and 2009 following up a chargability anomaly from a ground geophysics survey conducted in 2007 and 2008.Goldsource completed 11 shallow diamond drill holes in 2018 as part of the saprolite expansion program.

The following table shows the most significant results (uncut, undiluted) from the above work at Friendly. The Company is not treating the historical drill intercept mineralization estimates and other sampling intercepts from GSR or IAMGOLD as current mineral resources or reserves, has not verified them and is not relying on them. The Company currently does not plan to conduct any work to verify the historical estimates other than using them to guide its exploratory drilling work.

Friendly Prospect Previous Results:
Hole/Trench ID   From (m)  To (m) Drilled Interval (m)   Au (g/t)    Company   
       EM016         73.5   81.2           7.7             1.01         GSR     
     EMD08-20        37.3   39.3           2.0             1.30       IAMGOLD   
                    208.3  219.0          10.7             1.95                 
                    242.3  247.8           5.5             1.60                 
     EMD08-22        17.0   34.0          17.0             0.50       IAMGOLD   
     EMD08-22A       1.0    33.8          32.8             0.60       IAMGOLD   
     EMD09-38        11.9   14.0           2.1             0.80       IAMGOLD   
                    111.5  117.0           5.5             0.50                 
                    127.6  131.2           3.6             0.70                 
                    149.3  155.5           6.2             0.80                 
                    191.5  193.1           1.6             4.48                 
                    292.0  309.0          17.0             0.80                 
                    292.0  298.0           6.0             1.80                 
     EMD09-039       56.5   59.5           3.0             1.67       IAMGOLD   
                     65.5   66.8           1.3             0.80                 
                    106.0  107.0           1.0             1.76                 
     EMD18-003       7.9    12.4           4.5             0.58    Goldsource(3)
                     31.9   34.9           3.0             1.43     Goldsource  
     EMD18-005       0.6    3.4            2.8             1.38     Goldsource  
                     12.4   15.4           3.0             0.70                 
     EMD18-006       4.9    6.4            1.5             1.15     Goldsource  
                     10.9   12.4           1.5             0.60                 
     EMD18-007       37.9   39.4           1.5             0.91     Goldsource  
     EMD18-008       30.4   36.4           6.0             0.50     Goldsource  
     EMD18-009       13.9   15.4           1.5             0.54     Goldsource  
     EMD18-010       18.4   19.9           1.5             0.91     Goldsource  
     EMD18-011       0.0    19.9          19.9             0.67    Goldsource(3)
     Includes        13.9   19.9           6.0             1.50                 
TRFR18-001 (Trench)  0.0    12.0          12.0             1.15     Goldsource  

Historically, previous companies focused on the Eagle Mountain deposit for its near surface bulk mineable potential with smaller targets, like Friendly, less of a priority. The recent discoveries at Salbora, Powis, Toucan, and now Friendly have the potential to significantly grow the resource inventory at the Eagle Mountain project. Most importantly, these new discoveries show the potential to expand the saprolite resources and increase the overall grade of the resource, both of which should enhance the economic potential of the project.

Once Guyana COVID-19 restrictions have been lifted, the Company plans to operate three (3) drills to complete additional expansion and in-fill drill holes for 5,000 to 7,500 metres at Eagle Mountain including testing extensions of Salbora, Powis, Toucan, Friendly and the Eagle Mountain Gold deposit. The target is to complete an updated resource estimate for the Eagle Mountain project after the next round of drilling has been finished and interpreted during 2020, with the resource to form the basis for a potential pre-feasibility study for Eagle Mountain in 2021.

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. 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 expanding gold resources and delivering subsequent studies for decision-making on a large-scale gold production at Eagle Mountain.

We seek Safe Harbor.

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