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Goldsource Reports Production Results for Q3 2016

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Goldsource Reports Production Results for Q3 2016






Goldsource Mines Inc. (TSX-V: GXS) (OTCBB: GXSFF) (FWB: G5M) is pleased to report the production results for the third quarter and nine months ended September 30, 2016 at its Eagle Mountain Gold Project located in Guyana, South America.



Eagle Mountain Production Highlights Q3, 2016 vs Q2, 2016:


  • Processed 34,955 tonnes; 27% decrease, reflecting a shutdown in August.
  • Average throughput of 466 tpd; 27% decrease, reflecting a shutdown in August.
  • Estimated gravity recovery to concentrate of 32%; 32% decrease.
  • 174.6 gold ounces produced; 26% increase.
  • Record monthly gold production achieved in September with 136.5 ounces produced.
  • 107.3 gold ounces in inventory awaiting sale (72.3 ounces sold October 3).



Ioannis Tsitos, President, commented, “We continue working to balance throughput volumes with quality of recovery to achieve our goal of free cash flow from operations. In September, we began to see an increase in gold production with improvements in recovery of higher grade mine feed. During Q4, we will be replacing critical pipelines and pumps for improved efficiencies. We look forward to continued improvements in the following months with our focus on achieving operational free cash flow.”



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

Q3, 2016


Q2, 2016


% Change

(Q3 vs Q2)

Q1, 2016


9 months 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(5)






(1) Based on 25 operating days per month.
(2) All numbers are rounded.
(3) 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. See “Preliminary Economic Assessment of the Eagle Mountain Saprolite Gold Project, Guyana”, dated September 12, 2014 with an effective date of June 15, 2014 (the “PEA”)
(4) 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.
(5) 107.3 gold ounces in inventory.




During Q3, 2016, Eagle Mountain processed 34,955 tonnes of material (Q2, 2016: 48,098 tonnes), with average of 466 tpd (Q2, 2016: 641 tpd). As previously indicated in the Company’s revised production guidance (see news release dated August 25, 2016), operations were suspended on July 23, 2016 due to low grades and a delay in the shipment of a 40-tonne truck to site. In late-August, the Company recommenced mining, stockpiling and processing of the higher-grade material in Pit 4. In September, the mine operated for 29 days, processing 20,981 tonnes of material at an average throughput rate of 723 tonnes per day. Estimated gravity recovery to concentrate averaged 32% for Q3, 2016 (Q2, 2016: 47%).



While the average grade has improved substantially with the arrival of the 40-tonne truck and the commencement of production from Pit 4, optimization work to balance quantity of tonnes with quality of recovery continues on the process plant. In September, Goldsource retained the services of Sepro Mineral Systems Corp (“Sepro”), the manufacturer of the Eagle Mountain plant, to perform a process audit. Sepro completed the process audit September 18, 2016 and provided recommendations to improve the process plant performance and recovery. In addition, Goldsource has hired an experienced process engineer to focus on further optimization of recovery and performance of the process plant.  Preparations for a night shift have commenced, with a partial night shift to be phased in during Q4 2016 and a full night shift expected to be in place within the next six months.



In Q3, 2016, the Company poured 174.6 ounces of gold and sold 67.3 ounces of gold at an average realized price of US$1,321 per ounce.



Release of Third Quarter Financial Results



Goldsource plans to release its Q3, 2016 unaudited Condensed Consolidated Interim Financial Statements and Management’s Discussion & Analysis – Quarterly Highlights after market close on November 24, 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.


Posted October 13, 2016

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