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InvestmentPitch: Goldsource Mines (TSXV:GXS) (FSE:G5M) Announces Results of Preliminary Economic Assessment Report for Eagle Mountain Gold Project in Guyana - Video News Alert on InvestmentPitch.com

2014-08-01 19:49:00
Ticker Giełda ISIC Kraj Miasto

Vancouver, BC, August 1, 2014 -. Goldsource Mines (TSXV:GXS) (FSE:G5M) has

announced the results of its Preliminary Economic Assessment Technical Report

for the company's 100% owned Eagle Mountain gold project, a near-surface

saprolite oxide resource located in Guyana, South America, approximately 230

kilometres southwest of the capital, Georgetown.

InvestmentPitch.com has produced a "video news alert" about Goldsource Mines. If

this link is not enabled, please visit www.InvestmentPitch.com and enter

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Conceptually, the PEA results suggest that the project has low capital and

operating costs, minimized technical risk and a short development timeline.

Not considered in the PEA are the in-situ "fresh-rock" resources of Indicated

2,331,000 tonnes @ 1.52 grams per tonne gold containing 114,000 ounces and

Inferred 13,433,000 tonnes @ 1.13 grams per tonne, containing 486,000 ounces,

both at 0.5 grams per tonne cut-off.

Ioannis (Yannis) Tsitos, Goldsource's President stated: "We are extremely

pleased with the PEA results for this relatively low-risk phase of development

for the Eagle Mountain gold project. The results exhibit very attractive Rates

of Return. The creativity of the phased construction approach, its modular

design and the simplicity of the mining and processing of the low-strip ratio

saprolite material have resulted in an optimized development scenario for this

deposit. In addition, the inventory of potentially recoverable ounces of gold in

the oversize materials and the underlying hard rock resource provide us with a

significant 'blue-sky' potential for further development."

Following are some highlights of the Base Case economic estimates, using a gold

price $1,250 per ounce.

* Pre-tax Net Present Value of $69.4 million and after-tax NPV of $45.6

million, using a 5% discount rate

* Pre-tax NPV of $61.1 million and after-tax NPV of $39.8 million, using a 7%

discount rate

* Pre-tax Internal Rate of Return of 84% and after-tax IRR of 63%

* Phase 1, pre-production capital costs of $5.9 million, includes a 15%


* Total capital costs including proposed Phase II, III, and IV expansions, and

sustaining capital are estimated at $24.2 million

* Cash operating costs, exclusive of sustaining capital, for saprolite mine

life averages $480 per ounce gold, including a 15% contingency

* Cost per tonne of mill feed averages $8.96

* Pre-tax undiscounted operating cash flow before capital expenditures

totalling $123.4 million.

* 8-year Life of Mine Production  PEA mine plan totalling 8.6 million tonnes

at an average grade of 1.20 grams per tonne gold (diluted and recoverable).

* Of the 8.6 million tonnes, only 7.3 million tonnes (undersize sub-2mm)

grading 1.20 g/tonne gold will be conceptually processed. The remaining

tonnes (oversize larger than 2mm) would be stockpiled for further

metallurgical test work and potential further processing.

* Conceptually, the first four years of gold production would be

5,600, 14,400, 21,600 and 28,800 ounces gold, respectively.

* 8 year life of mine production estimates 168,700 ounces gold from gravity-

only processing at estimated 60% recovery

* Inventory of 161,900 oz Au in settlement ponds from gravity-only processing

rejects for potential future reprocessing using standard technologies.

For more detailed information, please refer to the company's latest news

release. The NI 43-101 Technical Report is being completed by Toronto-based

A.C.A. Howe International and will be filed on Sedar.com within 45 days.

N. Eric Fier, Goldsource's Chief Operating Officer commented: "Through our

experience, we have applied the responsible phased-approach business model to

the Eagle Mountain gold project in order to minimize initial capital and project

risk. This conceptual approach encompasses a "Phase I" starter open cut for

mining at 1,000 tonnes per day with subsequent low impact and low cost gravity-

only processing. Upon successful completion of Phase I, the Company plans to

systematically install and operate three additional similar plants over a four-

year schedule with a cumulative rate of 3,500 to 4,000 tonnes per

day.Conceptually, additional processing plants will be paid for through

operating cash flow. The project has several potential opportunities to

accelerate PEA-defined production once initial success in Phase I is achieved."

The company does not presently have the funds to carry out these developments

and plans to source the funds through equity or debt financing or a combination


Goldsource is trading at $0.26 and with 79.1 million shares outstanding, the

company is capitalized at $20.6 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.

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