VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2008) - Goldsource Mines Inc. (the "Company") (TSX VENTURE:GXS) is pleased to announce that it has received the approval from the Saskatchewan Ministry of Environment for its planned work program at the Durango Coal Seam, Border Coal Project, Hudson Bay, Saskatchewan. The receipt of the approval and the attendant permits enables the Company to immediately proceed with potential resource definition drilling in the area of its recent coal discovery as well as exploration drilling on other areas with geophysical signatures indicative of potential coal basins within the 132,000 hectare project.
The Company is now permitted to drill up to 300 holes within the project area in a phased program based on success. The Phase I plan is to drill approximately 50 holes this winter commencing as soon as road preparations and access to drill sites are completed.
J. Scott Drever, President stated: "We are pleased that the approvals for our proposed work program have been received in a timely manner. Preparations for our extensive winter drill program are proceeding at full pace and depending on continued cold weather, will allow us to complete a full winter season of exploration drilling. In addition to the geological information derived from this summer's program, recent additional interpretation of airborne and down-hole geophysics has helped define the paleo-topography of the Devonian sub surface, enabling us to identify those areas where the coal is likely to occur near to surface and in the greatest thicknesses."
The Company announced on November 11, 2008, the basic analytical results for 213 coal samples from nine holes drilled this summer which confirmed that the Durango Coal Seam is a good quality thermal coal which ranges from sub-bituminous C to bituminous C in rank. The coal ranges in calorific value from 20,640 kj/kg (8,874 Btu/lb) to 23,358 kj/kg (10,042 Btu/lb) on a dry basis. By way of comparison, the average calorific value of the Durango Coal Seam is generally higher than those of the Alberta thermal coal fields and the major coal producers of the Powder River Basin in the United States. In addition, preliminary washing tests completed by Loring Labs on the two discovery hole samples earlier in the year indicated the potential to significantly upgrade the quality of all of the coal by reducing the ash and sulphur content. The Company is proceeding with additional comprehensive wash tests of the coal in order to further enhance its thermal and usage characteristics. The results of this test work will be reported when completed.
N. Eric Fier, CPG, P.Eng. and Qualified Person for this news release has reviewed and approved its contents.
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.
On Behalf of the Board of Directors of Goldsource Mines Inc.
J. Scott Drever, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Goldsource Mines Inc.
(604) 691-1761 (FAX)