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Goldsource Mines (TSXV: GXS) Announces mining permit for Eagle Mountain Gold Project in Guyana

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Goldsource Mines, symbol GXS on the TSX Venture Exchange (FSE:G5M) has received a Medium Scale Mining Permit for a portion of the company’s 100% owned Eagle Mountain gold project. Eagle Mountain is a near-surface saprolite oxide resource located in Guyana, South America, approximately 230 kilometres southwest of the capital, Georgetown.

Additional Information:

Company: Goldsource Mines
Website: http://www.goldsourcemines.com/
Stock Symbol: TSXV: GXS
Date Published: Aug 26, 2014
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch.com

Goldsource Mines, symbol GXS on the TSX Venture Exchange (FSE:G5M) has received a Medium Scale Mining Permit for a portion of the company’s 100% owned Eagle Mountain gold project.

Eagle Mountain is a near-surface saprolite oxide resource located in Guyana, South America, approximately 230 kilometres southwest of the capital, Georgetown.

The permit grants permission to mine gold, diamonds, precious metals and precious minerals on a 250 hectare portion within the company’s approximately 5,050 hectare prospecting license.

Under Guyana law, a medium scale mining permit must be held by a Guyanese national.

Therefore, Stronghold Guyana, Goldsource’s 100%-owned subsidiary, has entered into agreements with Kilroy, a private arm’s length Guyanese company, which will hold the license, with Stronghold and Kilroy jointly operating the property.

Kilroy has granted Stronghold the exclusive right to conduct mining operations on the property, including any additional areas acquired by Kilroy.

Stronghold will fund all expenditures and receive 100% of all revenues, subject to applicable government royalties and a 2% net smelter return to Kilroy.

Kilroy will also receive 250,000 shares of Goldsource, subject to a 12-month hold period, and approval by the TSX Venture Exchange.

The project has a NI 43-101 resource of 188,000 Indicated and 792,000 Inferred gold ounces, with strong potential to expand its resources.

Ioannis (Yannis) Tsitos, Goldsource's President stated: "Following the recent announcement of the positive results of our Prelinimary Economic Assessment for the Eagle Mountain gold deposit, we are extremely pleased with the grant of the Permit. The project is now fully permitted for mining activities and ready for construction financing and subsequent Phase One development, as described in our News Release of July 31, 2014. The Company and its management are working aggressively with a staged production growth strategy to deliver real value to shareholders and to all other project stakeholders."

The company is working towards initial staged production in 2015.

Goldsource is trading at $0.24 and with 79.1 million shares outstanding, the company is capitalized at $19 million.

For more information please visit the company’s website www.goldsourcemines.com, or contact Fred Cooper at 1-866-691-1760 or email info@goldsourcemines.com.

I’m Samantha Deutscher for InvestmentPitch.com
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