TSX-V: GXS FWB: G5M
VANCOUVER, March 5, 2015 /CNW/ - Goldsource Mines Inc.
("Goldsource" or the "Company") announces that construction has
commenced at its Eagle Mountain Gold Project located in
Guyana, South America. The Phase I development
consists of a 1,000 tonnes per day open pit ‑ gravity
plant for an eight year mine life with estimated
pre-production capital costs of US$5.9 million and expected cash operating
costs of US$480 per ounce of gold.
Based on a Preliminary Economic Assessment ("PEA") Technical Report
prepared for the Company, titled "Preliminary Economic Assessment
of the Eagle Mountain Saprolite Gold Project, Guyana" dated September 12, 2014, with an
effective date of June 15, 2014, and filed on SEDAR at
www.sedar.com, sustaining capital and future expansions are
intended to be paid for through operating cash flow. Further
details on the PEA are also provided in the Company's news release,
dated July 31, 2014, available on the Company's website at
www.goldsourcemines.com.
Yannis Tsitos, President and
Director stated, "The Phase I development at Eagle Mountain is
fully financed, the mine area is fully permitted for operations and
mine site preparation and processing plant construction has begun.
The commencement of construction activities at Eagle Mountain is a
huge milestone for the Company and we are very excited at the
prospect of Goldsource becoming a low cost gold producer in
2015".
N. Eric Fier, Chief Operating
Officer stated, "Our development plan for Phase I has started. We
are excited about getting boots on the ground for construction as
we expect to execute this work on time and on budget. With success
of Phase I, we will look at several opportunities to optimize the
mine for the benefit of our shareholders."
Currently the significant development activities are as
follows:
- Purchase of a 100 tonnes per hour processing plant from Sepro
Mineral Systems Corp., Langley,
Vancouver, British Columbia
(deposits completed).
- Detailed engineering and final design of Sepro processing plant
(near completion).
- Construction of Sepro processing plant in Vancouver (Q1 to Q3 2015).
- Rehabilitation of the existing 10 kilometre road between Mahdia
town (main interior highway and commercial airport) and Eagle
Mountain Gold (underway).
- Procurement of longer-lead mining equipment (underway).
- Pre-production drilling program for confirmation and
condemnation (underway).
- Camp facility rehabilitation and upgrades (underway).
- Recruitment of key operations personnel (underway).
- Site preparation of plant and initial mining area (Q2
2015).
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,
Chief Operating Officer for Goldsource, who has reviewed and
approved its contents.
ABOUT GOLDSOURCE MINES INC.
Goldsource Mines Inc.
(www.goldsourcemines.com) is a Canadian resource company that is
progressing its advanced-stage, 100%-owned Eagle Mountain Gold
Project in Guyana towards initial
staged production in 2015. Goldsource is led by an experienced
management team, proven in making exploration discoveries,
achieving construction on time and budget, and fast‑tracking
production.
Ioannis (Yannis) Tsitos
President & Director
Goldsource Mines Inc.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
FORWARD-LOOKING STATEMENTS
This
news release contains "forward-looking statements" within the
meaning of Canadian securities legislation. Such forward‑looking
statements concern Goldsource's strategic plans and expectations in
the PEA for the development of the Eagle Mountain Gold Project; the
amount of future production of gold over any period; cash operating
costs per ounce of gold; life of mine; estimated pre-production
cost; funding of sustaining capital and future expansions through
operating cash flow; and the Company's ability to be a low cost
producer in 2015. Such forward‑looking statements or
information are based on a number of assumptions, which may prove
to be incorrect. Assumptions have been made regarding, among other
things: conditions in general economic and financial markets;
ability to realize the PEA and develop and finance the project;
accuracy of the interpretations and assumptions used in calculating
inferred mineral resource estimates; availability of mining
equipment; availability of skilled labour; timing and amount of
capital expenditures; performance of available laboratory and other
related services; and future operating costs. The actual results
could differ materially from those anticipated in these
forward‑looking statements as a result of the risk factors
including: 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 estimations; uncertainty as to actual
capital costs, operating costs, production and economic returns at
the Eagle Mountain Gold Project; reliance on the PEA;
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, readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date the statements were made. The Company undertakes no
obligation to update or revise any forward-looking statements
included in this news release if these beliefs, estimates and
opinions or other circumstances should change, except as otherwise
required by applicable law.
SOURCE Goldsource Mines Inc.
