Goldsource achieves commercial production at Eagle Mountain Mine

Goldsource Mines Inc. [GXS-TSXV; G5M-FSE] has reached commercial production on Phase I at its 100%-owned Eagle Mountain Gold Project located in Guyana, South America.

The company had defined commercial production as achieving an average minimum of 80% of the 1,000 tonnes per day nameplate capacity and 45% recovery in Falcon gold concentrate over a continuous period of 30 days. The operation achieved this milestone as of June 20, 2016.

Yannis Tsitos, President, stated, “Achieving commercial production is a significant milestone for the Company and one for which all of us at Goldsource can proudly take credit. I want to personally thank all of our employees and contractors for their dedication and hard work, ensuring the successful transition from commissioning to commercial production with a stellar safety record. This achievement is also a testament to the co-operation obtained from all our stakeholders, inclusive of Guyanese authorities, suppliers and shareholders.”

During the last 30 days, operations reached a maximum daily throughput of approximately 1,400 tonnes with an estimated average of 900 tonnes. Falcon gravity recovery to concentrate was approximately 50%. For the remainder of 2016, Management will continue to optimize the operation and anticipates a total production of approximately 3,600 ounces of gold for 2016. Starting in Q3, 2016, Eagle Mountain operations plan to implement a second shift as well as begin use of a newly purchased 40 tonne articulating truck to increase throughput from higher grade areas. With the planned expansion of operations, Eagle Mountain is targeting an average throughput of approximately 1,800 tonnes per day.

The processing plant and equipment are currently performing to management’s expectations and the camp site is fully equipped and functional. The company currently employs 37 staff and contractors at Eagle Mountain. During the commissioning phase, which commenced on January 28, 2016, the company performed approximately 55,000 man-hours, with one minor lost time accident.

Goldsource plans to release its Q2, 2016 and year-to-date production results on July 11, 2016.

Phase I of Eagle Mountain Gold Project is based on a Preliminary Economic Assessment (PEA) dated June 15, 2014, which calls for a 1,000 tonnes per day open pit – gravity plant with post-commissioning and ramp up cash operating costs of US $500-US $600/oz of gold.