Goldsource Surges on High-grade Discovery at Salbora Target

- January 23rd, 2019

Following a high-grade discovery at Goldsource’s Salbora target, shares of the company rose close to 70 percent.

Shares of Goldsource Mines (TSXV:GXS) rose over 66 percent on Wednesday (January 23) after the company reported a new high-grade discovery at its Eagle Mountain gold project.

The program at the asset is focused on two diamond core holes at the Salbora target, with results including holes EMD18-053 with 40.0 metres grading 6.52 grams per tonne (g/t) gold and EMD18-052 with 17.0 metres grading 2.82 g/t gold. Eagle Mountain is located in Guyana.

“These first deeper drill holes at Salbora improve our understanding of the previously announced high-grade results, which included trenching and shallow sonic core drilling. Surface projection of gold mineralization to depth is apparent and remains open in all directions,” said Yannis Tsitos, president of Goldsource.

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“These diamond drilling results indicate the potential to delineate a near surface, wide, high-grade gold deposit at Salbora which would expand the current resources at Eagle Mountain. Hole EMD18-053 is the company’s best drill hole to date on the project,” he added.

Results from these near-surface diamond core holes show high-grade gold mineralization below the previously announced surface trench, TRBS18-002, which returned 123 metres (horizontal width) grading 1.92 g/t gold.

The mineralized footprint at surface is estimated to be 500 metres long, 50 to 100 metres wide, unknown depth from surface and open in all directions.

The Salbora discovery is located within a northwest-southeast regional structural trend several kilometres in length. Locally, the high-grade mineralization at Salbora is found within a wide near-vertical shear zone located in Guyanese Shield greenstones of metavolcanics and metasediments, intruded by granitoids.

To date, Goldsource has completed two diamond core holes, 14 sonic shallow core holes, 113 shallow auger drill holes and 11 horizontally and vertically sampled trenches at Salbora.

The company noted that all of the results that held gold mineralization are considered near surface and several additional auger and sonic core holes are currently pending results and will be reported in the near future.

A step out diamond core drilling has been planned at Salbora, in order to help further define this high-grade discovery. Drilling is expected to take place within the first half of 2019.

“The company is starting a step out diamond drilling program on 50 to 100 metre centres along the suggested strike of Salbora to test continuity of high-grade mineralization and further increase our understanding of the overall grade and size of this discovery,” revealed Tsitos.

As of 3:09 p.m. EST on Wednesday, Goldsource was up 66.67 percent, trading at C$0.13.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.

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