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Goldsource Reports Production Results for Q2 and H1 2016; Eagle Mountain Gold Project

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Goldsource Reports Production Results for Q2 and H1 2016; Eagle Mountain Gold Project






Goldsource Mines Inc. is pleased to report the production results for the second quarter and for the first half of 2016 at its Eagle Mountain Gold Project located in Guyana, South America. Phase I of Eagle Mountain is based on a Preliminary Economic Assessment dated June 15, 2014, which calls for a 1,000 tonnes per day (“tpd”) open pit – gravity plant with post-commissioning and ramp up cash operating costs of US$500 to US$600 per ounce of gold. Please refer to the Company’s website at and the Company’s filing on SEDAR for further information on the PEA.



Eagle Mountain Production Highlights Q2, 2016 vs Q1, 2016:


  • Processed 48,098 tonnes; 450% increase.
  • Average throughput of 641 tpd; 296% increase.
  • Estimated gravity recovery to concentrate of 47%; 18% increase.



N. Eric Fier, CPG, P.Eng and Chief Operating Officer, commented, “The Eagle Mountain commissioning period and commercial production milestones in H1, 2016 were a challenge on several levels with a tightly constrained initial capital requirement of US$5.9 million, as budgeted in the PEA. With perseverance, our team was able to complete the Phase 1 “Proof of Concept” project under the initial budget. All significant project risks have been minimized for moving forward to increased production with anticipated positive cash flow in H2, 2016.”



Eagle Mountain Gold Mine Statistics(2)(3)(4)

Q2, 2016


Q1, 2016


% Change

H1 Total /


Mined tonnes





Processed tonnes at minus 2mm





Average tpd(1) processed





Average estimated gold grade, gpt





Estimated gravity recovery for plant





Estimated gravity recovery for table





Gold ounces produced





Gold ounces sold






Based on PEA of 25 operating days per month.


All numbers are rounded.


The Company achieved commercial production on June 20, 2016, which was defined as achieving a minimum 80% of the 1,000 tonnes per day nameplate capacity and a minimum 45% recovery in gold concentrate on average over a period of 30 continuous days. Commercial production does not imply economic viability.


Processing mass balance and reconciliation is based on daily sampling at site and offsite gold analysis at Actlabs in Georgetown, Guyana, which is an independent certified lab. Standard practice mined volumes are used and drill hole assays, also from Actlabs, are used for mine reconciliation.




During Q2, 2016, Eagle Mountain processed 48,098 processed tonnes, with average of 641 tpd (Q1, 2016: 162 tpd). For the 30 continuous days prior to June 20, 2016, Eagle Mountain processed an average of 916 tpd.



As initially planned, the average grade dropped from 0.91 gpt gold to 0.37 gpt gold while optimizing the plant with lower grade material. Current low grade material is considered pre-strip for mining anticipated higher grade material in Q3, 2016. Estimated average grade for the beginning of July is approximately 0.80 gpt gold at a 0.0:1 strip ratio, transitioning to greater than 1.0 gpt gold in August.



Estimated gravity recovery to concentrate averaged 47% for Q2, 2016 (Q1, 2016: 40%). The increase in recovery was due to optimization of the process plant. H2, 2016 recovery rates are expected to be similar to Q2, 2016.



The Company poured 145.2 ounces of gold and sold 200.3 ounces of gold at an average realized price of US$1,264 per ounce.



Release of Second Quarter Financial Results



Goldsource plans to release its Q2, 2016 unaudited Condensed Consolidated Interim Financial Statements and Management’s Discussion & Analysis – Quarterly Highlights after market close on August 16, 2016. 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.






Goldsource Mines Inc. is a Canadian resource company that has recently achieved commercial production for Phase I 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 achieving project construction on time and on budget.

Posted July 11, 2016

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