(TSX-V: GXS) (OTCBB: GXSFF) (FWB: G5M)
VANCOUVER, July 11, 2016 /CNW/ - Goldsource Mines Inc.
("Goldsource" or the "Company") is pleased to report the production
results for the second quarter ("Q2") and for the first half ("H1")
of 2016 at its Eagle Mountain Gold Project ("Eagle Mountain")
located in Guyana, South America. Phase I of Eagle Mountain is
based on a Preliminary Economic Assessment ("PEA") dated
June 15, 2014, which calls for a
1,000 tonnes per day ("tpd") 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.
Eagle Mountain Production Highlights Q2, 2016 vs Q1,
2016:
- Processed 48,098 tonnes; 450% increase.
- Average throughput of 641 tpd; 296% increase.
- Estimated gravity recovery to concentrate of 47%; 18%
increase.
N. Eric Fier, CPG, P.Eng and
Chief Operating Officer, commented, "The Eagle Mountain
commissioning period and commercial production milestones in H1,
2016 were a challenge on several levels with a tightly constrained
initial capital requirement of US$5.9
million, as budgeted in the PEA. With perseverance, our team
was able to complete the Phase 1 "Proof of Concept" project under
the initial budget. All significant project risks have been
minimized for moving forward to increased production with
anticipated positive cash flow in H2, 2016."
|
|
|
|
|
|
|
Eagle Mountain Gold Mine
Statistics(2)(3)(4)
|
Q2,
2016
Total
|
Q1,
2016
Total
|
%
Change
|
|
H1 Total
/
Average
|
|
Mined
tonnes
|
50,695
|
9,814
|
417%
|
|
60,509
|
|
Processed tonnes at minus
2mm
|
48,098
|
8,742
|
450%
|
|
56,840
|
|
Average tpd(1)
processed
|
641
|
162
|
296%
|
|
441
|
|
Average estimated gold grade,
gpt
|
0.37
|
0.91
|
(59%)
|
|
0.46
|
|
Estimated gravity recovery for
plant
|
47%
|
40%
|
18%
|
|
46%
|
|
Estimated gravity recovery for
table
|
61%
|
60%
|
2%
|
|
60%
|
|
Gold ounces
produced
|
145.2
|
55.1
|
164%
|
|
200.3
|
|
Gold ounces
sold
|
200.3
|
0.0
|
100%
|
|
200.3
|
|
|
|
|
|
|
|
(1)
|
Based on PEA of 25
operating days per
month.
|
|
(2)
|
All numbers are
rounded.
|
|
(3)
|
The Company achieved
commercial production on June 20, 2016, which was defined as
achieving a minimum 80% of the 1,000 tonnes per day nameplate
capacity and a minimum 45% recovery in gold concentrate on average
over a period of 30 continuous days. Commercial production does not
imply economic
viability.
|
|
(4)
|
Processing mass balance and
reconciliation is based on daily sampling at site and offsite gold
analysis at Actlabs in Georgetown, Guyana, which is an independent
certified lab. Standard practice mined volumes are used and drill
hole assays, also from Actlabs, are used for mine
reconciliation.
|
|
|
During Q2, 2016, Eagle Mountain processed 48,098 processed
tonnes, with average of 641 tpd (Q1, 2016: 162 tpd). For the 30
continuous days prior to June 20,
2016, Eagle Mountain processed an average of 916 tpd.
As initially planned, the average grade dropped from 0.91 gpt
gold to 0.37 gpt gold while optimizing the plant with lower grade
material. Current low grade material is considered pre-strip for
mining anticipated higher grade material in Q3, 2016. Estimated
average grade for the beginning of July is approximately 0.80 gpt
gold at a 0.0:1 strip ratio, transitioning to greater than 1.0 gpt
gold in August.
Estimated gravity recovery to concentrate averaged 47% for Q2,
2016 (Q1, 2016: 40%). The increase in recovery was due to
optimization of the process plant. H2, 2016 recovery rates are
expected to be similar to Q2, 2016.
The Company poured 145.2 ounces of gold and sold 200.3 ounces of
gold at an average realized price of US$1,264 per ounce.
Release of Second Quarter Financial Results
Goldsource plans to release its Q2, 2016 unaudited Condensed
Consolidated Interim Financial Statements and Management's
Discussion & Analysis – Quarterly Highlights after market close
on August 16, 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 GOLDSOURCE MINES INC.
Goldsource Mines Inc. (www.goldsourcemines.com) 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.
CAUTIONARY STATEMENT AND FORWARD-LOOKING
DISCLAIMER
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.
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.
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.
SOURCE Goldsource Mines Inc.