(TSX-V: GXS) (OTCBB: GXSFF) (FWB: G5M)
VANCOUVER, June 21, 2016 /CNW/ - Goldsource Mines Inc.
("Goldsource" or the "Company") is pleased to announce that it has
reached commercial production on Phase I at its Eagle Mountain Gold
Project ("Eagle Mountain") located in Guyana, South
America. The Company had defined commercial production as
achieving an average minimum of 80% of the 1,000 tonnes per day
nameplate capacity and 45% recovery in Falcon gold concentrate over
a continuous period of 30 days. The operation achieved this
milestone as of June 20, 2016.
Yannis Tsitos, President, stated,
"Achieving commercial production is a significant milestone for the
Company and one for which all of us at Goldsource can proudly take
credit. I want to personally thank all of our employees and
contractors for their dedication and hard work, ensuring the
successful transition from commissioning to commercial production
with a stellar safety record. This achievement is also a testament
to the co-operation obtained from all our stakeholders, inclusive
of Guyanese authorities, suppliers and shareholders."
During the last 30 days, operations reached a maximum daily
throughput of approximately 1,400 tonnes with an estimated average
of 900 tonnes. Falcon gravity recovery to concentrate was
approximately 50%. For the remainder of 2016, Management will
continue to optimize the operation and anticipates a total
production of approximately 3,600 ounces of gold for 2016. Starting
in Q3, 2016, Eagle Mountain operations plan to implement a second
shift as well as begin use of a newly purchased 40 tonne
articulating truck to increase throughput from higher grade areas.
With the planned expansion of operations, Eagle Mountain is
targeting an average throughput of approximately 1,800 tonnes per
day.
The processing plant and equipment are currently performing to
Management's expectations and the camp site is fully equipped and
functional. The Company currently employs 37 staff and contractors
at Eagle Mountain. During the commissioning phase, which commenced
on January 28, 2016, the Company
performed approximately 55,000 man-hours, with one minor lost time
accident.
Goldsource plans to release its Q2, 2016 and year to date
production results on Monday, July 11,
2016.
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,
and Chief Operating Officer for Goldsource, who has reviewed and
approved its contents.
ABOUT EAGLE MOUNTAIN GOLD PROJECT
Phase I of Eagle
Mountain Gold Project is based on a Preliminary Economic Assessment
("PEA") dated June 15, 2014, which
calls for a 1,000 tonnes 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.
Please refer to the Company's website at www.goldsourcemines.com
and the Company's filing on SEDAR for further information on the
PEA.
Management's production decision for the Eagle Mountain Gold
Project is not based on a feasibility study of mineral reserves
demonstrating economic and technical viability. This project has a
much higher risk of economic or technical failure and may adversely
impact the Company's projected profits, if any. The risks
associated with this decision are set forth in the Company's latest
annual management's discussion and analysis available on the
Company's website and the under Goldsource's SEDAR profile on
www.sedar.com.
ABOUT GOLDSOURCE MINES INC.
Goldsource Mines Inc. is a
Canadian resource company that has recently achieved commercial
production for Phase I at it 100%-owned Eagle Mountain Gold
Project, located in Guyana.
Goldsource is led by an experienced management team, proven in
making exploration discoveries and achieving project construction
on time and on-budget.
Ioannis (Yannis)
Tsitos
President
Goldsource Mines
Inc.
Neither TSX-V nor its Regulation Services Provider (as that term
is defined in policies of the TSX-V) 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; the amount of expected grades and ounces of metals, gold
recoveries mine life and gold production rates of the Eagle
Mountain Gold Project; and expectations regarding the Company's
ability to manage capital resources and meet working capital
requirements. 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.
