41.1 metres of coalGoldsource's wild ride continues with latest drill results
By: Liezel Hill
Published on 19th August 2008
Shares in explorer Goldsource Mines, the company that set off a staking rush when it announced earlier this year that it had intersected a coal seam while drilling for diamonds in eastern Saskatchewan, Canada, fell 20% on Tuesday morning, after the company published the latest results from its initial exploration drilling programme at the prospect.
Goldsource's shares, which surged dramatically when it first announced the discovery in April, have reacted sharply to each new set of drill results during the company's exploration programme, moving either up or down, depending on the latest coal intercept.
Of the final three holes to be released, two holes intercepted coal seam - of 41.1 m and 6.7 m respectively, while a third did not intercept coal at all.
"The completion of this program has given us important information about the nature of this coal deposit," said president J Scott Drever.
"As an early stage exploration program, the information obtained has helped us understand some of the geological and geophysical indicators of where the coal occurs and as importantly, where it does not occur."
The company will compile the data, including sample analyses, over the next several weeks to develop a working geological model that will enable it to plan for detailed drilling of the known occurrences, as well as to test further areas of potential.
"The permitting process for a major drill program commencing after freeze-up is well under way," added Drever.
Goldsource shares fell C$1.18 on Tuesday morning, to C$4.70 apiece by by 11:42 in Toronto.