Goldsource Mines Inc. (TSX VENTURE: GXS)(FRANKFURT: G5M) -
A correction from source is issued with respect to the release
issued earlier today at 9:30 ET. The sentence "N. Eric Fier, CPG,
P.Eng. and Qualified Person for this news release has reviewed and
approved its contents" has been added to the end of the release,
and the complete release follows.
Goldsource Mines Inc. (the "Company") reports results on 27 core
holes completed for 3,769 metres drilled during the 2009 - 2010
winter exploration program at its wholly-owned Border Project
("Border") located near Hudson Bay, Sask. Proximate analyses for 13
drill holes are reported in the table below. Numerous intercepts of
greater than 40 metres of coal were encountered with the coal in
the Niska 107 deposit nearer to surface, generally showing lower
ash content and higher calorific values than other deposits. Minor
coal seams were encountered in some of the remaining 14 holes,
while others were drilled outside the periphery of the
deposits.
For this phase of exploration, numbering of drill holes
continues sequentially from previous programs beginning at
BD09-116. Deposit names are based on an identifier in the general
location, and areas are designated according to discovery hole
numbers.
------------------------------------------------------------------------
Calor-
Calor- ific
Moist- Sulf- ific Value
Ash ure ur Value BTU/
From To Coal (ar) (ar) (ar) kg/KJ lb
Hole ID Deposit (m) (m) (m) % % % (ar) % (ar)
------------------------------------------------------------------------
BD10 120 Niska 107 60.5 85.3 24.7 13.2 24.3 2.4 18,392 7,907
------------------------------------------------------------------------
BD10 121 Niska 107 71.8 116.0 44.2 10.3 32.8 2.4 16,564 7,121
------------------------------------------------------------------------
BD10 125 Niska 107 71.5 126.0 54.5 16.2 33.8 2.2 14,291 6,144
------------------------------------------------------------------------
BD10 127 Niska 107 51.0 59.4 8.4 23.0 29.4 1.8 13,433 5,775
------------------------------------------------------------------------
BD10 133 Niska 107 46.5 53.5 7.0 14.8 27.2 1.6 16,501 7,094
------------------------------------------------------------------------
BD10 136 Niska 107 94.3 121.0 26.7 19.2 28.0 2.0 15,339 6,595
------------------------------------------------------------------------
BD10 138 Niska 107 55.4 62.5 7.1 17.4 25.2 1.9 16,513 7,099
------------------------------------------------------------------------
BD10 119 Niska 108 99.5 148.1 48.6 16.2 24.8 2.5 17,434 7,495
------------------------------------------------------------------------
BD10 123 Niska 108 119.0 137.0 21.0 14.5 33.4 2.3 15,401 6,621
------------------------------------------------------------------------
BD10 135 Niska 108 70.3 80.0 9.7 26.9 21.9 2.0 14,220 6,113
------------------------------------------------------------------------
BD10 139 Niska 108 80.1 103.7 23.6 22.4 24.1 1.8 15,327 6,589
------------------------------------------------------------------------
BD10 124 Pasquia 2 85.2 123.2 38.0 not analyzed - for Pasquia 2
future test work hydrology
hole
------------------------------------------------------------------------
BD10 140 Chemong 3 77.3 152.0 74.7 not analyzed - for Chemong 3
future test work in-fill hole
------------------------------------------------------------------------
NOTE: All numbers are "as-received" (ar) and rounded. Coal intervals are
based on less than 1.6 density, and a Calorific Value (Heat Value)
of greater than 14k kg/KJ.
To date, drilling has identified 17 coal deposits at Border,
with the recent Fugro airborne gravity surveys indicating good
potential for additional coal discoveries and the expansion of
several existing deposits.
Goldsource will incorporate data from the winter 2009 - 2010
drill program into an updated NI 43-101 Technical Report, which
will include an updated resource model and revised estimates. It is
anticipated that much of the 89.6 million tonnes of Inferred
resources will be upgraded to the Indicated resource category.
The Preliminary Economic Assessment ("PEA") continues under the
direction of Marston Consultants and EBA Engineering Consultants.
Initial results from the PEA suggest:
-- An on-site 500 MW clean coal-fired generator is the first choice for an
end use of the coal. Design of the coal-fired electric generating plant
can accommodate the coal quality of the deposits. Abundant biomass
resources available in Saskatchewan to offset CO2 emissions for a
reduced carbon footprint can supplement this fuel. Recent power studies
suggest that a 500 MW generator would help fulfill Saskatchewan's future
power requirements.
-- An on-site coal to liquids plant appears to be a second alternative for
an end use of the coal. Goldsource has signed confidentiality agreements
with providers of this technology which will be assessed as part of the
PEA. Indications are that these technologies can be economically
competitive with the current price of oil. Based on conversion ratios of
1.5 to 3.0 barrels of oil equivalents per tonne of coal, there are an
estimated 200 to 400 million barrels of oil equivalent contained in the
Border Coal deposits.
-- A review of potential power generation partners is underway. In
addition, the study will examine mining and capital costs,
transportation and potential export markets.
Goldsource anticipates completion of the PEA in Q3, 2010.
Results from a recent Fugro airborne Falcon gravity survey
completed in the spring of 2010 have been received. Initial
assessment of the data shows expanded boundaries of existing
deposits as well as newly defined targets. The Company believes
that the test programs have enhanced its ability to identify new
deposits and better define the boundaries of these unique deposits.
Depending on the availability of financing, the Company plans to
drill these targets in late summer 2010 to expand near-surface
resources and identify potential tonnages of improved coal
quality.
Current coal resources at Border include:
- Indicated Resources: 63.5 million tonnes
- Inferred Resources: 89.6 million tonnes
- Speculative Resources: 18.7 million tonnes
Please refer to Moose Mountain Technical Services NI 43-101
"Technical Report on the Border Coal Property, Resource Estimation"
dated December 24, 2009 and available on www.sedar.com.
Goldsource's President, J. Scott Drever states that, "We believe
that we have successfully achieved our main goal of converting the
Inferred Resources in the Niska deposits to the higher category of
Indicated Resources. In doing so, we will have exceeded the
threshold target of 100 million tonnes of Indicated Resources
necessary to support a potentially economic operation of
significant size. The completion of the Marston Preliminary
Economic Assessment later this year will provide guidance as to
what options are available for development of the resources and how
the significant value of these coal assets can be realized."
N. Eric Fier, CPG, P.Eng. and Qualified Person for this news
release has reviewed and approved its contents.
Goldsource Mines Inc. (TSX VENTURE: GXS) is a resource company
that is engaged in the exploration and development of Canada's
newest coalfield in east-central Saskatchewan. The Company has
aggressively drilled only a portion of this new thermal coalfield,
and has discovered 17 coal deposits of varying size with coal zone
thicknesses greater than 100 meters within the permit area of the
Border Coal Project. An experienced management team, who has
accumulated a century's worth of international mining success,
leads Goldsource. The Company is well financed, and based in
Vancouver, BC.
This news release contains forward-looking statements, which
address future events and conditions, which are subject to various
risks and uncertainties. The Company's actual results, programs and
financial position could differ materially from those anticipated
in such forward-looking statements as a result of numerous factors,
some of which may be beyond the Company's control. These factors
include: the availability of funds; the timing and content of work
programs; results of exploration activities and development of
mineral properties, the interpretation of drilling results and
other geological data, the uncertainties of resource and reserve
estimations, receipt and security of coal permits and mineral
property titles; project cost overruns or unanticipated costs and
expenses, fluctuations in commodity product prices; currency
fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and
opinions of the Company's management on the date the statements are
made. The assumptions used in the preparation of such statements,
although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be
placed on forward-looking statements.
J. Scott Drever, President
GOLDSOURCE MINES INC.
Neither the TSX-Venture Exchange nor its Regulation Services
Provider accepts responsibility for the accuracy or adequacy of
this release.
Contacts: Goldsource Mines Inc. Fred Cooper (604) 694-1760 ext.
108 or Toll Free: 1-866-691-1760 (Canada & USA) (604) 694-1761
(FAX) info@goldsourcemines.com www.goldsourcemines.com
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