NewsPrint Email Article Font Down Font Up Charts Goldsource Announces Construction Update at Eagle Mountain Gold Project TSX-V: GXS FWB: G5M VANCOUVER, May 28, 2015 /CNW/ - Goldsource Mines Inc. ("Goldsource" or the "Company") is pleased to announce that construction at its Eagle Mountain Gold Project ("Eagle Mountain") located in Guyana, South America is progressing on schedule and currently on budget. Goldsource anticipates commissioning for Phase I production to take place by Q4, 2015. Phase I development anticipates a 1,000 tonnes per day open pit ‑ gravity plant with estimated pre-production capital costs of US$5.9 million and post-commissioning cash operating costs of under US$500 per ounce of gold. All current plans are based on the Preliminary Economic Assessment ("PEA") Technical Report prepared for the Company, dated effective June 15, 2014, and filed September 16, 2014 on SEDAR at www.sedar.com. Further details on the PEA are also provided in the Company's news release, dated July 31, 2014, available on the Company's website at www.goldsourcemines.com. Yannis Tsitos, President and Director stated, "We are pleased with Eagle Mountain's construction progress with the first shipment of processing plant equipment on budget and schedule in June. This new equipment will include two SB2500 Falcon concentrators, gold recovery room, refinery, pumps, electrics and on-site laboratory. We have assembled a strong team of experienced professionals to manage the construction of Eagle Mountain and fully expect to deliver Phase I on-time and budget." The most significant construction activities are as follows: •Detailed engineering of Sepro processing plant (100% completed). •Construction of gold processing plant (100 tonnes per hour) from Sepro Minerals Systems Corp., Langley, Vancouver, British Columbia to be delivered to Guyana in two packages, as follows: 1.Package #1 to be delivered to Guyana in Q2 2015 from Canada and the United Kingdom (95% completed). 2.Package #2 to be delivered to Guyana in Q3 2015 from Canada and Mexico (20% completed). •Rehabilitation of the existing 10-kilometre road between Mahdia town (commercial airport) and Eagle Mountain camp including construction of eight new bridges (75% completed). •Procurement & purchase of mining equipment including the most recent acquisition of a new excavator and loader (50% completed). •Pre-production auger drilling program for confirmation and condemnation (75% completed). See comment below on initial results. •Recruitment of key operations personnel (15% completed). •Camp facility rehabilitation and upgrades (15% completed). •Site preparation of plant and initial mining area (10% completed). •Procurement & purchase of secondary gold processing plant for exploiting existing old tailings area (10% completed). Q1 2015 condemnation auger drilling under the proposed processing plant area has encountered near surface mineralization of up to 6 metres (0.0 to 6.0 metres, total auger depth) grading 2.0 gpt Au. Mineralization encountered is outside of the PEA resource estimation. Further drilling is underway to decide if moving the proposed plant site is warranted. Since the processing plant requires minor site preparation, relocation to a "non-mineralized" area (several available) is obtainable with no disruption to the current construction schedule or budget. The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is N. Eric Fier, CPG, P.Eng, Chief Operating Officer for Goldsource, who has reviewed and approved its contents.