Goldsource Announces Option to Purchase Strategic Land Position; Provides Corporate Update and Grants Options
TSX VENTURE: GXS
Vancouver, British Columbia--(Newsfile Corp. - February 1, 2018) - Goldsource Mines Inc. (TSXV: GXS) (OTCBB: GXSFF) (FWB: G5M) ("Goldsource" or the "Company") is pleased to announce that through its local joint venture partner, Kilroy Mining Inc. ("Kilroy"), it has entered into an option agreement to acquire a 100% interest in a property ("Bishop Growler" or the "Property") located along the projected mineralized trend three (3) kilometres from the Company's 100% owned Eagle Mountain Gold Project ("Eagle Mountain" or the "Project") in Guyana, South America. The Company has also appointed an Executive Chair and granted stock options.
Option to Purchase Bishop Growler
Bishop Growler comprises fifteen (15) Small Scale Mining Claims ("SSMC") and covers an area of about 2.5 square kilometres. It is located within a major SW-NE mineralized trending corridor that aligns Eagle Mountain and the historical Omai Gold Mine, situated 40 kilometres from Eagle Mountain which was last operated by IAMGOLD Corporation in 2007 and which produced a reported 3.7 million ounces of gold over its mine life (see Figure below). Bishop Growler is currently owned by a local Guyanese individual (the "Owner") who operates an artisanal gold mine on the Property. Goldsource's 5,030 hectare Eagle Mountain Prospecting Licence ("EMPL") surrounds Bishop Growler and is located on the Paleo-Proterozoic greenstones of the Guiana Shield. The Owner produces gold by mining veins and gold-enriched saprolite, related to the same mineralized granodiorite pluton with the Eagle Mountain Gold Deposit.
Yannis Tsitos, President, commented, "We are pleased to have secured a strategic land package proximal to Eagle Mountain. Bishop Growler enlarges our gold mineralized footprint in the area and, together with our surrounding prospecting licence, provides access to this northwestern trend for a comprehensive exploration effort. We believe the newly optioned area has good potential for additional gold-enriched saprolite, as well as mineralized hard rock. The Company plans to allocate funds to further access the Property and initiate exploration work in Q1 2018. Our main focus remains the completion of the Pre-Feasibility Study at Eagle Mountain as previously announced with completion now targeted for H2 2018."
On January 30, 2018, Kilroy, the Company's joint venture partner (see news release, dated August 26, 2014) entered into an option agreement with the Owner which contemplates execution of a Definitive Agreement. The Company can earn a 100% interest in the Property by paying the Owner US$525,000 over a period of 3 years in staged payments. An additional payment of US$500,000 is due on exercise. The Option can be terminated without cost at any time on one-months' notice.
Figure 1: Eagle Mountain Expansion Program 2018
Goldsource Appoints N. Eric Fier Executive Chairman
Goldsource is pleased to announce that N. Eric Fier, CPG, P.Eng and currently a Director and the Chief Operating Officer of Goldsource has also been appointed the Executive Chairman of the Board of Directors. The former Chairman of the Board of Directors, Graham Thody, remains an Independent Director and Chairman of the Audit Committee of Goldsource and has been appointed Lead Director of the Company.
Goldsource Grants Stock Options
The Company announces the grant of stock options to directors, officers, employees and consultants exercisable for 1,800,000 common shares of the Company at a price of $0.10 per share for a five-year term expiring January 31, 2023. Of the stock options granted, 100,000 will be subject to a 12-month vesting schedule pursuant to which 25% shall vest on April 31, 2018 and a further 25% shall vest every 3 months thereafter until fully vested.
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, Executive Chairman, and Chief Operating Officer for Goldsource, who has reviewed and approved its contents.