VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 9, 2010) - Goldsource Mines Inc. (\"Goldsource\" or the \"Company\") (TSX VENTURE:GXS)(FRANKFURT:G5M) is pleased to report that it has completed drilling 27 core holes for the winter 2009-10 exploration program at its wholly-owned Border Project (\"Border\") located near Hudson Bay, Saskatchewan, Canada which encountered several thick coal zones including 126.5 metres in the Niska 107 deposit. Drilling to date has discovered 17 coal deposits at Border with good potential for additional coal discoveries (see attached map:
http://media3.marketwire.com/docs/gs.jpg). The winter program also included 5 drill holes on the Ballantyne property as well as 8 holes on the Company's quarry claims in Manitoba.
Current coal resources at Border, as established in the Company's NI 43-101 \"Technical Report on the Border Coal Property, Resource Estimation\" prepared by Moose Mountain Technical Services dated December 24, 2009 and available at
www.sedar.com, include:
-- Indicated Resources: 63.5 million tonnes
-- Inferred Resources: 89.6 million tonnes
-- Speculative Resources: 18.7 million tonnes
The highlights of the winter program are as follows:
-- The most significant coal zone intervals occurred in the Niska sub-basin
in holes BD10-119 and BD10-136 with true, aggregate thicknesses of
approximately 64.3 metres and 126.5 metres respectively. Two in-fill
holes (BD10-124 and 140) were drilled at previously defined Chemong 03
and Pasquia 02 coal deposits which confirmed the significant true
aggregate thickness of 74.0 and 53.0 metre coal zone intercepts,
respectively.
-- Infill drilling has given better definition to the Niska 107 and 108
deposits where the emphasis was on upgrading Inferred Resources to
Indicated Resources. A majority of the 89.6 million tonnes of Inferred
Resource at Niska are expected to be converted to Indicated Resources.
-- Winter drilling identified a new coal deposit at Niska (1 metres) and a
second one at Leaf Lake (2 metres). 27 drill holes totalling 3,768
metres were drilled at Border. Fourteen drill holes intercepted
aggregate coal zone thicknesses ranging up to 126.5 metres. Those holes
that did not intercept coal were generally on the periphery of known
coal deposits. Of the 27 holes, 3 were drilled for geotechnical and
hydrological data.
-- A total of 177 coal samples were sent to Loring Labs in Calgary, Alberta
for proximate analyses and additional testing.
-- Two geotechnical and one hydrological drill holes were completed, the
results of which will be used in the Preliminary Economic Assessment
(PEA) that is currently underway.
-- Marston Consultants of Calgary, AB and EBA Engineering Consultants (EBA)
of Vancouver, BC began the PEA, which is scheduled for completion in the
3rd quarter of 2010. Several coal technologies for energy production are
under review including clean coal power generation, coal quality
upgrading, coal gasification and coal to liquids.
-- Environmental baseline work under the direction of EBA has begun with
emphasis on collecting data and reporting on results for the PEA.
-- Five drill holes totalling 569 metres were completed at the Ballantyne
property in Saskatchewan to test airborne geophysical targets. No coal
was intercepted in these holes.
-- A total of 8 holes were completed at the Pine River property in Manitoba
with 2 coal intercepts from 1 to 3 metres thick. Drilling was
discontinued pending completion of the consultation process between the
Government of Manitoba and First Nations groups regarding the work
program.
-- Under an agreement with Westcore Energy Ltd. to identify coal targets
using Goldsource proprietary geophysical tools, the success criteria set
out in the agreement have been satisfied and the Company is entitled to
receive, amongst other things, an additional 1 million shares of
Westcore and a 25% working interest in Westcore's coal lands in
Saskatchewan and Manitoba. Westcore has recently announced the discovery
of several significant coal deposits adjacent to the Border property in
which Goldsource now has a 25% interest. Please refer to the Company's
news release dated December 11, 2009 at www.goldsourcemines.com for
further details of the agreement.
J. Scott Drever, President stated: \"We believe we were successful in achieving our main goals of converting the Inferred Resources in the Niska deposits to the higher category of Indicated Resources and confirming that we have exceeded the threshold target of 100,000,000 tonnes of Indicated Resources to support a potentially economic operation. The success of Westcore Energy in the area is important to us in growing our resource base as we have now earned a 25% interest in any resources that may develop as a result of their new discoveries.\"
Summary of Winter Program Coal Intercepts at Border:
Numbering of the drill holes for this phase of exploration continues sequentially from previous programs beginning at BD09-116. Names of deposits are based on an identifier in the general location and the Areas are designated according to the discovery hole numbers.
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Coal Zone
Interval
Hole ID From (m) To (m) (i)(m) Notes
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BD10-120 60.5 85.3 24.8 Niska 107 deposit
BD10-121 72.0 111.2 39.2
BD10-125 71.5 126.0 54.5
BD10-127 50.0 68.0 18.0
BD10-133 41.0 80.0 39.0
BD10-136 56.5 183.0 126.5
BD10-138 45.0 63.0 18.0
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BD10-119 83.8 148.0 64.3 Niska 108 deposit
BD10-123 107.0 137.0 30.0
BD10-132 89.0 94.0 5.0
BD10-135 70.3 80.0 9.7
BD10-139 80.0 103.0 23.0
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BD10-116 50.0 51.0 1.0 New - Niska 116
BD10-122 92.7 94.6 1.9 New - Leaf Lake 122
BD10-124 86.0 139.0 53.0 Pasquia 2 in-fill hydrology hole
BD10-140 78.0 152.0 74.0 Chemong 3 in-fill hole
(i)The coal zone intervals are based on visuals (coal and carbonaceous
material) and down hole, e-log density of 1.6 g/cc or less.
Initial identification of the intervals of coal in the table above is based on visual and downhole geophysical characteristics. The Company cautions against placing undue reliance on the visual and downhole survey observations of the coal until the results of the analytical work have been announced. Sampling and laboratory test work has commenced at Loring Labs in Calgary on 177 samples with compiled results anticipated by early June 2010.
Drill holes BD10-117, BD10-118, BD10-126, BD10-128 to 131, BD10-134 and BD10-137 contained no significant coal intercepts. Three engineering holes were completed to initially test geotechnical and hydrological parameters for the PEA.
This current phase of drilling is now completed and all data will be compiled and incorporated into an updated NI 43-101 Technical Report which will include an updated resource model and the results of the PEA which is underway with completion anticipated in late Q3, 2010.
N. Eric Fier, CPG, P.Eng. and Qualified Person for this news release has reviewed and approved its contents.
Goldsource Mines Inc. is a Canadian resource company engaged in the exploration and development of Canada's newest coal field in the province of Saskatchewan. The Company has aggressively drilled only a portion of this new thermal coal field and has discovered 17 coal deposits of varying size with coal zone thicknesses up to 126 meters within the permit area of the Border Coal Project. Headquartered in Vancouver, BC, the Company is well financed and is managed by experienced mining and business professionals.
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of coal permits and mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in commodity product prices; currency fluctuations; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
J. Scott Drever, President
GOLDSOURCE MINES INC.
