RE:RE:Expansion of Friendly ProspectHello Nick.
Goldsource Announces Salbora High-Grade Discovery; 69 Metres (40 Metres Est. True Width) Grading 6.52 g/t Au
VANCOUVER, BC – January 23, 2019
This was such a spectacular news release from Goldsource Mines last year, and arguably one of their best news releases ever - this drill hole however, has been both a blessing and a curse. It certainly made long suffering GXS investors like you and me excited again, and got the attention of many new investors who had never heard of Goldsource Mines before. Eric Sprott invested $3,000,000 to acquire 25 million shares of GXS at $0.12 through the March 19, 2019 Brokered Private Placement. Mr. Sprott continued to buy shares through the open market in the high teens. Most importantly, Mr. Sprott has not sold any of his 8.7% stake in the Company - over 27 million shares owned.
I shudder to think how our share price would have reacted, if this drill hole was released during this recent gold market run up. Unfortunately, this drill hole has created unrealistic expectations from both existing shareholders and new investors alike - myself included. Initially.
I have since come to understand and appreciate that Salbora simply represents one of many new deposits discovered on the Eagle Mountain Gold Property, which ultimately adds more gold to the existing 1 milion gold ozs at the Eagle Mountain deposit - and as an added bonus, the gold ozs at Salbora are much higher grade than the average 1.3 gpt Au at the Eagle Mountain deposit. The average grades at Salbora are nearly double that of Eagle Mountain - this is exceptional, when you consider that the 1 million ozs of 1.3 gpt Au at Eagle Mountain are already highly economic.
In addition to Salbora, we have also discovered Powis and Toucan, which also represent new deposits on the Eagle Mountain Gold Property. Could Minnehaha, located further south of Salbora, or Montgomery, located further north of Salbora, also become new deposits? With continued targeted drilling of Salbora, Powis, Toucan, and Friendly, will we find even more gold at these deposits? Based on all the drilling success we've had to date, I do believe so. But at what cost? I would argue that the total amount of drilling they have completed, and the level of drilling success that they have achieved, on such a relatively limited budget, has been nothing short of amazing. Yes, we have been diluted along the way to raise the necessary funds, and i am not happy about this either. But it has been money well spent.
I need to cut this short, something has come up...too be continued.