UpdateGoldsource Intercepts 36.8 Metres of Continuous Coal
Border Property, Saskatchewan
VANCOUVER, B.C. August 5, 2008 –Goldsource Mines Inc. (the “Company”) announces that it has completed holeBD08-05, offset hole BD08-03A and hole BD08-07 at the Border Property nearHudson Bay, Saskatchewan (see attached drill plan ).
Hole BD08-05was drilledapproximately 3.0 kilometres to the northeast of BD08-02, andapproximately 4.5 kilometres to the northwest of initial discovery holeBD08-03. The hole was drilled to a depth of 133.5 metres and intercepted a36.8 metre coal seam from 78.2 – 115.0 metres. The coal is continuous overthis interval with only minor visible partings. The coal in BD08-05 isblack, hard and dull to bright and appears comparable in most respects tothat of the intercept of discovery hole BD08-03 which was ranked assub-bituminous to bituminous.
Hole BD08-03Awas drilledapproximately 50 metres east of discovery hole BD08-03. The hole wasdrilled to a depth of 141.5 metres and encountered a coal intercept of25.2 metres between 80.3 metres and 105.5 metres. A continuous coalinterval of 22.1 metres was encountered from 80.3 - 102.4 metres withminor partings and the remaining 3.2 metres being mixed coal and sandysiltstones. The hole was drilled as an offset to discovery hole BD08-03,which intercepted 27.1 metres of coal including 22.6 metres of continuouscoal. The purpose of the hole was to obtain additional samples foranalyses and a down-hole geophysical log of the entire stratigraphicsection. The coal in BD08-03A is black, hard and dull to bright withfew visible partings and appears comparable in most respects to that ofthe intercept of discovery hole BD08-03 which was ranked as sub-bituminousto bituminous.
Hole BD08-07was drilledapproximately 4.5 kilometres southwest of discovery hole BD08-03 and 3.5kilometres southwest of hole BD08-02 (see attached drillplan ). The hole was drilled to a depth of 101.0 metres andencountered 3.0 metres of mudstone and sand stone with coal from 52.5 -55.5 metres. The hole was drilled to test a geophysical anomaly that had aslightly different set of parameters than previous holes that encounteredbroad intercepts of coal and to determine the nature of the basin at thispoint. It appears that the hole was drilled on the margins of abasin and the seam has thinned to the southwest in the 3.5 kilometres fromthe 23.2 metre coal intercept in hole BD08-02.
The Company cautions against placing unduereliance on the visual observations of the coal until the results of theanalytical work have been announced.
J. Scott Drever, President stated; “We believe that theseholes have important implications in determining the potential extent ofthe Durango coal seam. The coal intercept in BD08-05 is the thickest,continuous, apparently undisturbed coal interval encountered to date.By any standard, this is a huge coal intercept and is 12.0 metresthicker than the thickest interval of continuous coal we have yetencountered. To put this in context, the continuous coal interval inBD08-05 is approximately the height of a 12 story building, with virtuallyno interruption in the depositional process. The information from eachhole helps to establish our geological interpretations, improve ourreliance on the available geophysical data and enable us to begin todetermine the dimensions of what is developing as a unique and significantcoal discovery.”
Hole BD08-06Ais currently beingdrilled approximately 100 metres west of discovery hole BD08-06 (see attached drill plan ). This hole is being drilled asan offset to discovery hole BD08-06, which intercepted 34.2 metres of coalincluding 24.0 metres of continuous coal. The purpose of this hole is toobtain additional samples for analyses and a down-hole geophysical log ofthe entire stratigraphic section.
N. Eric Fier, CPG, P.Eng. and Qualified Person for thisnews release has reviewed and approved its contents.
This news release contains forward-lookingstatements, which address future events and conditions, which are subjectto various risks and uncertainties. The Company’s actual results, programsand financial position could differ materially from those anticipated insuch forward-looking statements as a result of numerous factors, some ofwhich 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 andsecurity of coal permits and mineral property titles; project costoverruns or unanticipated costs and expenses, fluctuations in commodityproduct prices; currency fluctuations; and general market and industryconditions. Forward-looking statements are based on the expectations andop
The TSX-Venture Exchange has not reviewed and does notaccept responsibility for the accuracy or adequacy of this release.
