Canadian company hits jackpot in Guyana with high quality gold find

Nov 22, 2021 News

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Kaieteur News – A Canadian company, Goldsource Mines Inc. has reportedly hit the jackpot with a high-quality gold find in its 100% owned Eagle Mountain concession located in Region Eight, Potaro-Siparuni.
Not only did the company find high quality gold but it also was able to locate the gold deposit near to the surface. This was disclosed in a recent statement the company made on its website disclosing its latest results from infill and expansion drilling it conducted at the location encompassing 1,360-acre concession.
Infill drilling is basically drilling new holes between previously drilled holes to map out exactly where the gold might be located and how much of it. Expansion drilling on the other hand is mapping out fixed starting points from which a company intends to expand its gold deposit.
According to the company, the newly reported results are for 29 core holes that were drilled at 4 areas on its Eagle Mountain Concession, namely, Bacchus, Bottle Bank, No. 1 Hill and Bucket Shaft.

Core holes are holes that are drilled using a special drilling equipment with diamond bits to extract core samples from the earth to test for gold and its quality. At the No.1 hill, Goldsource Mines Inc., drilled 10 core holes and managed to find high quality gold near the surface.
In one of the core holes, the company struck near-surface high-grade mineralization (material in which higher grades of gold are found) of 16.5 metres with an estimated true width (ETW) of 14.2 metres grading 20.04 grams per tonne (“gpt”) in saprolite.
Saprolite are weathered rocks and what locals would call soft rock and most time considered ‘easy’ material for mining. Goldsource Inc. even boasted that the hole it drilled produced significantly higher grades of gold than previously estimated.
Starting at 93 metres down that same hole, the company struck mineralization of 21.0 metres with an ETW of 18.2 metres grading 1.32 gpt gold.
These show that material that contains the high grade gold can also be found much deeper. For the Bacchus and Bucket Shaft Areas the company obtained drill results from 19 core holes. In one of them called the company intersected mineralization of 7.5metres with an ETW of 6.5 metres, grading 1.32gpt gold starting at a depth of 25.5 metres.
Another hole named drilled approximately 80 metres to the south of the previous drill hole, found mineralization of 10.5 metres with an ETW of 6.7 metres grading 1.12 gpt gold starting 81 metres down.
A third hole named, intersected mineralization of 1.5 metres with an ETW of 1.2 metres grading 10.90 gpt gold starting 15 metres down. Goldsource Mines Inc. had also drilled seven more core holes totaling 803 metres at the Salbora deposit on its Eagle Mountain Gold Project.
Results from this area showed that one hole intersected mineralization of 1.5 metres with an ETW of 1.4 metres grading 18.98 gpt gold starting at a depth of 34.5 metres. Two other holes also showed good results for the company.
One of them struck mineralization 4.5 metres with an ETW of 3.5 metres, grading 7.70 gpt gold starting at 112.5 metres down while the other core hole intersected mineralization of 1.5 metres with an ETW of 1.2 metres grading 37.86 gpt gold at a depth of 124.5 metres.
These higher-grade intersections, according to the company, were found approximately 80-100 metres below the Inferred Mineral Resource (estimated amount of mineral/gold in the earth’s crust with limited or no evidence).
Goldsource Inc’s Chief Executive Officer (CEO), Steve Parsons, said that the latest drilling results has provided key insights for his company’s ongoing operation”.
Goldsource Inc was first heard of in Guyana back in 2014 when its subsidiary, Stronghold Inc, teamed up with a local mining firm, Kilroy Inc to operate a 250-hectare concession at Eagle Mountain. The Canadian company had said back then that a medium-scale mining permit is required under Guyana’s law to be held by a Guyanese national. As a result it was forced to partner with a Guyanese owned company. Not much was heard of the foreign mining company’s operation in Guyana until 2016 when it announced that “it had reached commercial production on Phase I at its 100%-owned Eagle Mountain Gold Project, in Region Eight”.
That same year Goldsource Mines Inc promised that it would produce some 3,600 ounces of gold. News of the company’s operation went off the radar again then resurfaced in 2018. Kaieteur News reported in April that year that Goldsource Mines Inc. increased its stakes in Guyana by buying a concession in Region Seven from a local. Those gold lands were known as the Bishop Growler mines and was at the time owned by a Guyanese conducting artisanal mining on the property which measured about 2.5Km2.
Nothing more was heard of their operations in Guyana since then. However, according to the company it had initiated an exploration program to expand the Eagle Mountain resource base back in March 2017. In 2018, it discovered the Salbora area and began drilling there that same year.
In 2020, it commenced the expansion of the other area called the friendly area within the Eagle mountain concession and had also discovered other locations such as the Toucan and Powis Targets along the Salbora-Powis trend.
In February 2021 the Goldsource Mines Inc. reported that the mineral resource update for it Eagle Mountain Gold Project stands at 848,000 ounce of indicated resources (proven gold resources) and 868,000 ounce of inferred resources (estimated gold resources). Currently the company is conducting in-fill drilling of the 2021 Mineral Resource Estimate (MRE) to upgrade a significant portion of mineralization classified as inferred to the Measured and Indicated. Classifying mineralization as measured and indicated means that the estimated amount of gold material or gold in the earth has been proven by drilling results. These results will then be used as the basis for a pre-feasibility study meaning that ongoing exploration is to determine whether mining at its 100% owned Eagle mountain Gold project is economically viable or not.

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