VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2011) - Goldsource Mines Inc. (TSX VENTURE:GXS)(FRANKFURT:G5M) ("Goldsource" or the "Company") is pleased to report that its summer drill program previously announced on July 11, 2011 is now underway at its wholly-owned Border Project ("Border") located near Hudson Bay, Saskatchewan. Road access, where necessary and helicopter drill pads have been constructed and the drill rig has begun the first hole. The purpose of the program is to test several previously-defined geophysical anomalies for potential coal resource expansion (see attached map at http://media3.marketwire.com/docs/gm_map_906.jpg).
The program will consist of up to 10 core holes that will be drilled near to road access or utilizing helicopter support to test 3 significant geophysical anomalies which have been identified using the Company's proprietary proven Coal Identification Matrix (CIM). One target is approximately 3 kilometres by 3 kilometres and exhibits geophysical signatures similar to those that are related to known large coal deposits. The other 2 targets with similar geophysical features both measure more than 1 kilometre by 1 kilometre. It is expected that the drilling phase of this program will take approximately 45 - 60 days to complete. As in the past the Company expects to report coal interval intercepts once the holes are completed and electronically logged with analytical results to follow once they become available.
Applications have been submitted to the Saskatchewan Ministry of Energy and Resources for conversion of existing coal permits to coal leases. The Company has applied to retain approximately 56,000 hectares which covers all current coal resources, potential exploration targets and road and rail infrastructure access. The leases will be valid for a period of 15 years, renewable for a second 15 year period and are subject to a $5.50 per hectare annual rental fee but no work commitments.
J. Scott Drever, President stated: " In connection with the business combination of Goldsource and ZEEP, both parties agree that continuing the exploration and development of this valuable asset at Border is an important component in the strategy to ultimately develop a major coal gasification energy centre in Saskatchewan utilizing the Pratt Whitney Rocketdyne technology under license to ZEEP. The current program will provide valuable information on the existing as well as potential new coal resources and set the stage for possible bulk sampling of the deposits in 2012".
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 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.