Goldsource unaware of reason for 30% stock rally

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Goldsource Mines Inc. [GXX-TSXV; GXSFF-OTCBB; G5M-FSE] on Monday August 31 issued a statement saying it is not aware of any material undisclosed information that may be contributing to the level of trading activity in its shares.

The statement was released at the request of the Investment Industry Regulatory Organization of Canada (IIROC) after heaving trading in the shares prompted IIROC to halt trading early Monday. After trading was permitted to resume, the shares were up 30.4% or $0.04 to 15 cents on volume of 12.7 million, making Goldsource the most actively traded stock on the TSX Venture Exchange.

The company’s flagship property is its 100%-owned Eagle Mountain saprolite and hard-rock gold project in Guyana, South America. The Eagle Mountain Project is located 230 km southwest of Georgetown, capital of Guyana. It can be accessed by existing road or via a commercial airport, which is 7 km from the project site.

From 2016 to 2017 the company completed testing on gravity-only gold production and both drying and wet open-pit mining techniques. The company has said it is now focused on expanding gold resources and delivering subsequent studies for decision-making on a large- scale gold production at Eagle Mountain.

Back in January, 2019, Goldsource made a high-grade gold discovery while exploring in an area known as the Salbora target. Highlights included 40.0 metres of 6.52 g/t gold.

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. Inferred resources are 20.6 million tonnes at 1.19 g/t gold, or 792,000 ounces.

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.

“In the last 36 months, we have drilled in excess of 25,000 metres at Eagle Mountain, resulting in recent discoveries at Salbora, Powis, Toucan and Friendly,” said Yannis Tsito, President. “We are looking forward to an updated independent resource estimate for completion in the fourth quarter of 2020,” he said.


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