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Goldsource Mines (TSXV:GXS) has issued an update on construction at its Eagle Mountain Gold Project in South America

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Eagle Mountain is a near-surface saprolite oxide resource located in Guyana, South America, approximately 230 kilometres southwest of the capital, Georgetown. The Preliminary Economic Assessment Technical Report calls for a 1,000 tonnes per day open pit, gravity plant, with post-commissioning cash operating costs of US$500 to US$600 per ounce of gold.

Additional Information:

Company: Goldsource Mines
Website: http://www.goldsourcemines.com/
Stock Symbol: TSXV:GXS
Date Published: Dec 15, 2015
Transcript: Available

Video Transcript:

I’m Debbie Goldbloom for InvestmentPitch Media

Goldsource Mines (TSXV:GXS) (FWB:G5M) has issued an update on construction at its Eagle Mountain Gold Project in South America.

Eagle Mountain is a near-surface saprolite oxide resource located in Guyana, South America, approximately 230 kilometres southwest of the capital, Georgetown. The Preliminary Economic Assessment Technical Report calls for a 1,000 tonnes per day open pit, gravity plant, with post-commissioning 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.

Construction of Phase 1 is nearing completion and testing of selected plant components and the process circuit is underway.

During shipment to site, an automation control panel was damaged which required replacement and has delayed the previously targeted year-end production by about 4 to 6 weeks.

The replacement panel is currently being delivered by air-freight to Guyana.

Yannis Tsitos, Goldsource’s President stated: “We are generally pleased with Eagle Mountain's construction progress with most of our mine construction tasks either completed or nearing completion. We expect to be under budget with final commissioning and initial production to occur in early 2016.”

Goldsource is trading at $0.22 and with 126.5 million shares outstanding, the company is capitalized at $27.8 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 Debbie Goldbloom for InvestmentPitch Media