VANCOUVER, BRITISH COLUMBIA, Jun 17, 2008 (Marketwire via COMTEX News Network) --
GoldsourceMines Inc. (the "Company") (TSX VENTURE:GXS) announces that it hasreceived confirmation of issuance of an initial 55 coal permitcertificates from the Saskatchewan Ministry of Energy and Resources forcoal applications filed by the Company to cover its recently announcedcoal discovery near Hudson Bay, Saskatchewan. The Company has also beenadvised that issuance of the balance of the 179 coal permitcertificates applied for will occur shortly. The coal applicationscomprise a total of approximately 143,000 hectares (1,430 squarekilometres). The area covered by the initial 55 permits isapproximately 42,000 hectares (420 square kilometres) and is centeredon the two core drill holes which resulted in the discovery of the coalintercepts previously announced (news releases dated April 22 and April28, 2008). The permits allow the Company to explore the area for coaland are for a period of one year with two possible 6 month extensionsand convertible to a 15 year lease.
The Company is currentlypermitted to drill an additional seven holes in the area. The receiptof the permits confirms the Company's title to the area and makes itpossible to proceed with its planned drill program in July and August.This program has been designed to: 1) prove continuous coal seamthicknesses; 2) provide broader and better information on coal quality;3) give further insight into the orientation of the coal basin(s); and4) provide initial inferred resources.
The initial target sizeto be tested has the potential to contain 2.0 to 4.0 billion tonnes ofcoal. This target tonnage is conceptual in nature. There is neithersufficient drilling nor information available to establish a resourcenor is there any assurance that such a resource will be identifiedthrough further exploration work. The target size is based on theconditions set forward in GSC Paper 88-21 for the standardizedreporting of coal resources and reserves in Canada. The followingassumptions regarding the target size have been made;
- Geology type defining the complexity of seam geometry is Low - Type B,
- The continuous average thickness of the coal seam is a minimum of 20 metres,
- The extrapolation distance of datafrom the nearest point (drill hole) is 1200 to 3600 metres for inferredresources. The area defined by the spacing of the additional sevendrill holes with the two existing holes will be approximately 17 kmlong and 9 km wide, and
- The in-situ bulk density for sub-bituminous to bituminous coal is approximately 1.35 g/cm3.
Uponsuccessful completion of the initial drill program, the Company plansto complete a NI 43-101 technical report including initial resourceestimates. Also, based on success of drilling, a preliminary assessmentto quantify potential markets, transportation, capital requirements andoperating costs will be considered. Permitting of a major drill programfor the winter of 2008-2009 is currently underway.
Aspreviously announced (news release dated May 5, 2008), the coalintercepts are from two core holes located 1.64 kilometres apart andrepresent 26 metres and 32.5 metres, respectively, of coal seam,including 22.6 metres of continuous coal in each hole. Most of the coalfrom the two intercepts is ranked as High Volatile Bituminous C andSub-Bituminous A and is believed to be from the Mannville/Swan RiverGroup of Cretaceous age. The two core drill holes are locatedapproximately 50 kilometres north of Hudson Bay, Saskatchewan.
N. Eric Fier, CPG, P.Eng. and Qualified Person for this news release has reviewed and approved its contents.
Thisnews release contains forward-looking statements, which address futureevents and conditions, which are subject to various risks anduncertainties. The Company's actual results, programs and financialposition could differ materially from those anticipated in suchforward-looking statements as a result of numerous factors, some ofwhich may be beyond the Company's control. These factors include: theavailability of funds; the timing and content of work programs; resultsof exploration activities and development of mineral properties, theinterpretation of drilling results and other geological data, theuncertainties of resource and reserve estimations, receipt and securityof coal permits and mineral property titles; project cost overruns orunanticipated costs and expenses, fluctuations in commodityproduct prices; currency fluctuations; and general market and industryconditions. Forward-looking statements are based on the expectationsand opinions of the Company's management on the date the statements aremade. The assumptions used in the preparation of such statements,although considered reasonable at the time of preparation, may prove tobe imprecise and, as such, undue reliance should not be placed onforward-looking statements.
On Behalf of the Board of Directors of Goldsource Mines Inc.
J. Scott Drever, President
SOURCE: Goldsource Mines Inc.
Goldsource Mines Inc. Fred Cooper (604) 691-1760 (604) 691-1761 (FAX) Email: info@goldsourcemines.com Website: www.goldsourcemines.com
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