GXS NEWS! Goldsource Mines Inc (C-GXS) - News Release
Goldsource hires Norwest to review Sask. coal find
2008-05-29 17:51 ET - News Release
Shares issued 17,773,181
GXS Close 2008-05-28 C$ 6.79
Mr. J. Scott Drever reports
GOLDSOURCE RETAINS NORWEST FOR INDEPENDENT REVIEW OF SASKATCHEWAN COAL DISCOVERY
Goldsource Mines Inc. has retained Norwest Corp. to provide an independent review of the company's recent Saskatchewan coal discovery. Norwest is an internationally recognized leader in providing consulting expertise to the energy, mining and natural resources industries. Norwest has extensive expertise in the assessment, exploration, development and production of major coal resources at an international level and will advise the company on the results received to date and provide guidance with respect to its upcoming exploration program.
Norwest has nearly 30 years of coal-related consulting experience and is considered to be a coal expert on Canadian and international coal deposits. Norwest qualified person, John R. Williams, PG, has completed a site visit, inspected the drill core and reviewed the available analytical results. The significant conclusions arising from the Norwest inspection and initial trip report are as follows:
- Coal intercepts were encountered in two drill holes (BD08-03 and 06) that were drilled at the company's Border property located approximately 50 kilometres north of Hudson Bay, Sask. The age of the strata for the Border project is early Cretaceous. The coal-bearing strata dip very gently at approximately one degree. Based on the electromagnetic survey and regional geologic maps, several large structural lows or basins occur within the project area. Currently, no evidence of faulting has been found within the project area.
- In spite of the problems identified with respect to the coal core condition, description and sampling, the coal quality for the two holes shows favourable characteristics of a thermal coal. Since moisture content is of particular importance in assessing the thermal qualities of thermal coal, the initial quality results of the first two holes are somewhat marginalized due to the core not being protected from moisture loss.
- Sufficient geological and drill data are not yet available to thoroughly evaluate the Border coal project. As the two holes show attractive depth to coal, coal thickness and favourable thermal characteristics, additional drilling is recommended.
- The coal is moderately hard, black and has been initially ranked by Loring Labs of Calgary, Alta. (certified), as subbituminous C to high-volatile bituminous B;
- The top 21 metres of the coal seam appear to be of consistent quality in both holes with few minor visible partings. The average total seam thickness is approximately 30 metres with the lower nine metres being of higher ash content. The stratigraphy overlying the top of the seam appears geologically consistent. There are only about 1.5 metres difference in the elevations of the tops of the seam even though the holes are 1.64 kilometres apart. It is therefore initially assumed to be the same continuous coal seam between the two holes. Further drilling will be required to confirm this assumption.
Norwest will be advising the company on the upcoming summer drill program with respect to drill hole placement, coal drilling procedures, coal logging and sampling protocols, quality assurance/quality control, sample security, and recommended coal analysis. The company expects to have a Norwest independent representative on site during the commencement of the drill program.
J. Scott Drever, president, stated: "For nearly 30 years, Norwest has offered a wide range of services to energy and mining companies, electric power producers, financial institutions, governments, legal firms, and regulatory agencies. Norwest's professional staff of engineers, hydrologists, geologists, environmental specialists and management consultants bring extensive industry experience to our project. Norwest's innovative, experienced-based approach is focused on assisting clients achieve world-class performance standards. We are delighted to have them as our lead technical advisers."
The qualified persons for Goldsource are N. Eric Fier, CPG, PEng, of Goldsource, and Mr. Williams, PG, of Norwest, who have reviewed and approved this news release.
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