Goldsource Mines Inc. ("Goldsource" or the "Company") is pleased to announce that construction at its Eagle Mountain Gold Project ("Eagle Mountain") located in Guyana, South America continues to progress well. As planned, the Company anticipates commissioning for Phase I production to take place during Q4, 2015.
Phase I contemplates a 1,000 tonnes per day open pit ‑ gravity plant with estimated pre-production capital costs of US$4.0 to US$5.0 million and post-commissioning cash operating costs of US$500 to US$600 per ounce of gold. All current plans are based on the Preliminary Economic Assessment ("PEA") Technical Report prepared for the Company, dated effective June 15, 2014, and filed September 16, 2014 on SEDAR at www.sedar.com. The estimated pre-production capital costs of US$4.0 to US$5.0million have been revised down from the PEA stated pre-production capital costs of US$5.9 million. Further details on the PEA are also provided in the Company's news release, dated July 31, 2014, available on the Company's website at www.goldsourcemines.com. Please also refer to Goldsource's website at www.goldsourcemines.com for the Company's Management's Discussion Analysis for the six months ended June 30, 2015 for the details of the revised pre-production capital costs.
Yannis Tsitos, President stated, "We are pleased with Eagle Mountain's construction progress with the ongoing shipments to site of the processing plant and equipment and the testing of the secondary aggregate plant with possibly residual gold production. We fully expect to deliver the Phase I construction on-time and budget for Q4, 2015."
The most significant construction activities are as follows:
- The gold processing plant (100 tonnes per hour), designed and constructed by Sepro Minerals Systems Corp., Langley, Vancouver, British Columbia to be delivered to Guyana in two packages, as follows:
- Package #1 is in Guyana at Eagle Mountain or in storage nearby awaiting final site preparation (95% completed).
- Package #2 to be delivered to Guyana in September 2015 (fabrication 100% completed).
- Rehabilitation of the existing 10 kilometre road between Mahdia town and Eagle Mountain camp including construction of eight new bridges (85% completed). Road completion was delayed several weeks due to heavy seasonal rains. Dry season has started.
- Procurement & purchase of major equipment including the most recent acquisition of a dozer and two new 500 KVA generators (90% completed).
- Pre-production auger drilling program for confirmation and condemnation of plant site (100% completed).
- Recruitment of key operations personnel (60% completed).
- Site preparation of upgraded camp, plant, tailings area and initial mining area (50% completed).
- Procurement & purchase of secondary processing plant for exploiting existing old tailings area to provide construction aggregate with potential residual gold recovery (preliminary testing underway).
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, Chief Operating Officer for Goldsource, who has reviewed and approved its contents.