GOLDSOURCE MINES INC. The MRE Update reflects the positive effect of infill and expansion drilling completed in 2021, principally in and around the Eagle Mountain deposit. This has resulted in an estimated 40% increase in ounces of gold for the Indicated Resource. Conversion of Inferred Resource to the Indicated category was the primary objective of the 2021 exploration program. The expanded Indicated Resource will form the basis for a prefeasibility study ('PFS') focussed on establishing shallow, low strip ratio open-pittable mineral reserves.
Details of the MRE Update will be provided in a Technical Report with an effective date of
Highlights
Estimated 31.1 million tonnes ('Mt') grading 1.18 grams per tonne ('gpt') gold for 1,183,000 ounces ('oz') of gold in Indicated Resource and 18.4 Mt grading 0.98 gpt gold for 582,000 oz of gold in Inferred Resource.
The MRE includes the Eagle Mountain and Salbora deposits as well as the earlier-stage Toucan and Powis prospects. Gold mineralization starts at surface in saprolite (soft weathered rock) with the base of the saprolite marked by a narrow transition zone (< 1 metre) and extends into the underlying fresh rock. Overall, the saprolite and transition contain 35% of the gold in Indicated Resource and 24% in Inferred Resource.
The Indicated Resource, representing 67% of the gold in the Updated MRE, are laterally extensive and generally shallow.
At the Eagle Mountain deposit the Indicated Resource extends from surface to a maximum depth of 150 metres and has an average depth of 35 metres. 75% of the Indicated Resource is within 50 metres of surface.
At the Salbora deposit the Indicated Resource extends from surface to a maximum depth of 156 metres and has an average depth of 49 metres. 58% of the Indicated Resource is within 50 metres of the surface.
The Mineral Resource estimate uses cut-off grades of 0.30 gpt gold for the saprolite and 0.50 gpt gold for the fresh rock, constrained grade boundaries based on geology, and are pit-contained (conceptual). The cut-off grades used are unchanged from the
The MRE Update does not include the Soca prospect, which was discovered after the assay cut-off date. The Company's 2022 exploration program includes follow-up work on drill-ready targets proximal to the Eagle Mountain deposit. This includes the Soca prospect, as well as the re-initiation of generative exploration work to test under-explored areas on the west and east side of the Eagle Mountain Prospecting License.
The Updated MRE is defined by 772 core holes for 75,430 metres drilled (average depth of 98 metres) up to
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CAUTIONARY STATEMENT AND FORWARD-LOOKING DISCLAIMER
This news release contains 'forward-looking statements' within the meaning of Canadian securities legislation. Such forward-looking statements concern Goldsource's strategic plans; the MRE, timing of filing of the Technical Report, contents and timing of preparation of an updated MRE; intention to use the updated MRE as the basis for a PFS; timing and expectations for the Company's exploration and drilling programs at Eagle Mountain, including the objectives of the Company's 2022 exploration program and the reinitiation of a generative exploration program and information regarding high grade areas projected from sampling results and drilling results. 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; accuracy of assay results; reliability of the MRE; availability of mining equipment; availability of skilled labour; timing and amount of capital expenditures; performance of available laboratory and other related services; the impact of the COVID-19 pandemic on operations; availability of funds 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; the ultimate impact of the COVID-19 pandemic on operations and results, results of exploration activities and development of mineral properties; the interpretation of drilling results and other geological data; the uncertainties of resource estimations; receipt, maintenance and security of permits and mineral property titles; environmental and other regulatory risks; project costs overruns or unanticipated costs and expenses; delays in release of an updated mineral resource; availability of funds 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.
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