(TSX-V: GXS) (OTCBB: GXSFF) (FWB: G5M)
VANCOUVER, Dec. 14, 2016 /CNW/ - Goldsource Mines Inc.
("Goldsource" or the "Company") reports that the existing loan
facility (the "Facility") announced on November 3, 2015 entered into with Mitan Holdings
Ltd., a company controlled and directed by a director of the
Company, has been amended and increased by US$300,000, (the "Additional Facility") for a
total loan facility of US$1,300,000.
The proceeds will be used for the immediate purchase, delivery
and early Q1 2017 installation of a Krebs cyclone in tandem with
the Falcon concentrators for further potential increase in gold
recoveries at the Eagle Mountain Gold Project, together with
installation of a separate secondary gravity/sluice box plant
(excludes concentrators) for increased gold production, and general
working capital.
Preliminary data from ongoing optimization programs suggests
that Falcon recoveries have increased from an estimated 15% and 17%
in September and October, respectively, to 28% in November. Further
testwork and optimization including cyclone and sluice processing
for potential increased recoveries will be completed in Q1 2017.
The Company will repay the principal outstanding under the
Additional Facility by not later than the date which is two (2)
months from the date of the advance of the Additional Facility.
The revised terms of the Facility provide that the Company will
repay US$50,000 of the principal
outstanding under the Facility commencing on January 23, 2017, and on the 23rd day of each
month thereafter until payment of the balance outstanding due
June 21, 2017.
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
is currently in the Proof of Concept Phase 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 in
project construction.
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 for the development of the Eagle Mountain Gold Project
based on the PEA and variations to mining plans as mining
operations progress and decrease gold production is encountered;
gold recoveries 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 and ability to positively adjust
mining operations when assumptions and expectations on which mining
operations are based are not fully met; 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 for initial mining operations and on
management decisions to appropriately adjust mining operations and
depart from mining plans contemplated in the PEA when considered
warranted; 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.