Goldsource rallies on Guyana drilling results

Goldsource Mines Inc. [GXX-TSXV; GXSFF-OTCBB; G5M-FSE] rallied Wednesday November 13 after the company announced the results of expansion drilling on a high-grade target located near its Eagle Mountain gold project in Guyana, South America.

The company said that drilling results have expanded the Salbora deposit to a high-grade footprint of approximately 600 metres long by 10 to 150 metres wide, (narrowing to the south), by 75 to 150 metres deep. “Gold mineralization is open in most directions,” the company said in a press release Wednesday.

Goldsource shares advanced on the news rising 6.7% to $0.08 on volume of 1.2 million shares traded. The shares are trading in a 52-week range of 3.5 cents and 22.5 cents.

The Eagle Mountain Project is located 230 km southwest of Georgetown, the capital of Guyana. It can be accessed by existing road or via a commercial airport, which is 7 km from the project site.

Eagle Mountain is also located 45 km southwest of the former Omai gold mine, which produced four million ounces of gold between 1993 and 2005.

Back in January, 2019, Goldsource said it made a new high-grade gold discovery while exploring in an area known as the Salbora target. Highlight results included 40.0 metres (estimated true width) grading 6.52 g/t gold in diamond core hole EMD18-053.

The area known as Salbora is located approximately 1.5 km northwest of the Eagle Mountain deposit. Eagle Mountain hosts an NI 43-101-compliant indicated resource (hosted by saprolite (oxide), and non-oxidized rock) of 3.9 million tonnes at 1.49 g/t gold or 188,000 ounces. On top of that is an inferred resource of 20.6 million tonnes at 1.19 g/t gold or 792,000 ounces. This resource estimate has an effective date of June 15, 2014.

The company has said it wants to increase the saprolite resources to a minimum of 600,000 ounces, grading 1.0-1.5 g/t via expansion and in-fill drilling.

On Wednesday, the company said step-out hole [EME19-019] located 150 metres north of the Salbora discovery holes intersected 76.5 metres grading 1.18 g/t gold. It also said new drill results have doubled the strike length of the gold mineralization and confirmed sulfide-rich gold mineralization that is suggested in previously announced geophysical interpretations.

From the total drilling at Salbora of approximately 8,250 metres, the weighted average gold grade within this semi-continuous mineralized footprint is 2.58 g/t gold, the company said.

“This makes the Salbora deposit the highest grade, gold mineralized, near-surface deposit on the Eagle Mountain property and a significant complement to the nearby Eagle Mountain deposit,” it said.

“We are pleased with the additional positive drill results at Salbora,” said Goldsource President Yannis Tsitos. “Doubling the length of the deposit through drill-testing is crucial in our goal to reach a critical mass for Eagle Mountain of 600 to 800 thousand ounces of gold in the saprolite resource, plus a hard rock resource, to finalize the ongoing pre-feasibility study,” he said.

The company has said its goal is to become a low cost gold miner in Guyana within the next three years, producing between 50,000 ounces and 70,000 ounces annually from a 4,000 to 5,000 tonne-per-day open pit operation.

Meanwhile, Tsitos said drilling will continue to test new targets as defined by geology and geophysical anomalies. The company said it is expanding its currently announced diamond core drill program and expects to drill an additional 5,000 to 6,000 metres in late 2019 and the first quarter of 2020.