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Goldsource Mines (TSXV:GXS) Completes Phase I construction of its Eagle Mountain Gold Project

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Goldsource Mines (TSXV:GXS) (FWB:G5M) (OTCBB:GXSFF) announced that Phase I construction at its 100%-owned Eagle Mountain Gold Project is complete, with commissioning of the operation underway. 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: Jan 21, 2016
Transcript: Available

Video Transcript:

I’m Tia Borden for InvestmentPitch Media

Goldsource Mines (TSXV:GXS) (FWB:G5M) (OTCBB:GXSFF) announced that Phase I construction at its 100%-owned Eagle Mountain Gold Project is complete, with commissioning of the operation underway.

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

Production plans for Phase I, based on the Preliminary Economic Assessment Technical Report dated July 2014, call for a 1,000 tonne per day open pit – gravity plant, with post-commissioning and ramp up cash operating costs of US$500 to US$600 per ounce of gold.

The PEA used a gold price of $1,250, which showed a pre‐tax internal rate of return of 84% and an after‐tax IRR of 63%.

As you can see in this table, the project remains quite profitable even at lower gold prices, increased operating or capital costs, or decreased gold recovery.

Yannis Tsitos, Goldsource’s President stated: “With the start of commissioning, Goldsource begins the exciting process of transitioning into a new junior gold producer. Over the next two weeks, we will be completing extensive testing along with dry and wet runs of mined materials through the process facility. The next several months of production ramp up are considered the “proof of concept period” to demonstrate that operational and cost parameters outlined in the PEA are achievable. This will be an important milestone for the Company. We expect the Phase I capital cost for construction to be under budget at less than US$5 million compared to the estimated PEA budget of US$5.9 million.”

The company, led by an experienced management team, with a track record in making exploration discoveries and achieving project construction on time and on budget, anticipates initial staged production to begin during the first quarter of 2016.

Goldsource is trading at $0.28 and with 127 million shares outstanding, the company is capitalized at $35.6 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 Tia Borden for InvestmentPitch Media