Vancouver, British Columbia--(Newsfile Corp. - April 6, 2020) - Goldsource Mines Inc. (TSXV: GXS) (OTCQB: GXSFF) (FWB: G5M) ("Goldsource" or the "Company") announces protocols to minimize exposure to the novel coronavirus (the "Virus" or "COVID-19") in order to decrease risk to the company's employees, contractors, families and communities near the Eagle Mountain Gold project ("Eagle Mountain") in Guyana, South America. On April 3, 2020, the Minister of Public Health for Guyana announced new policies and guidelines for non-essential businesses, which incudes mining exploration and development. Following the policies and guidelines, relevant to the Covid-19 pandemic, by both Canadian and Guyanese authorities, the Company will temporarily suspend its drilling and exploration activities at Eagle Mountain for a period of 30 days, which may be amended. The potential risk of infection should be significantly reduced, with site personnel being security staff only. The next shift rotation at Eagle Mountain was planned for April 8th, so our temporary suspension of activities will take effect between April 5th and April 7th based on staged workers' transport from the Eagle Mounatin camp.
The Company has taken the following measures in an attempt to safeguard against and prevent the potential spread and impact of the Virus:
- Temporarily closing both the Goldsource offices, in Vancouver and in Georgetown, with personnel working remotely from home, wherever possible and appropriate;
- Restricting non-essential business travel;
- Restricting non-essential visits to Eagle Mountain;
- Educating employees and contractors on rigorous hand washing, personal hygiene and disinfecting;
- Collaborating with government agencies and local authorities in Guyana in order to coordinate efforts;
- Donating funds to the special COVID-19 Relief Fund, set-up by the Guyana Gold and Diamond Miners Association ("GGDMA") to support persons affected by the Virus in the local mining communities; and in the case of Goldsource, persons affected by the Virus in Mahdia, Region Eight, the nearest town to Eagle Mountain;
- Maintaining full salaries and benefits, for the company's employees, as proscribed by government guidelines.
Yannis Tsitos, President, commented, "We are thankful to report that there are currently no known cases of COVID-19 for any of our employees, contractors and their familes. The health and the well-being of our employees, their families and commumities is of utmost importance to Goldsource Mines. We will monitor the situation and seek to assist local and federal government efforts to keep our employees informed and aware of best practices to slow and halt the spread of COVID-19".
The Company continued to drill test for extensions of mineralization at the Salbora and Powis discoveries (see corporate news releases dated January 23, 2019 and February 5, 2020). In recent weeks, drilling has been focused on the Toucan-Powis structural corridor, Salbora North and the Friendly target. Goldsource had two diamond core rigs turning on site, until March 17th, when the drill contractor on site shut down to allow for the drilling team to depart before international travel restrictions were enforced. Goldsource's own rig continued drilling till April 5th. The Company announced on February 5th, that a third, man-portable, drill will be added to the project in March 2020 to perform in-fill drilling at Eagle Mountain. The man portable rig is in transit to the country by boat. Goldsource will need to wait until international travel restrictions have been lifted to bring the rig and drill crew to site. The Company has executed a contract for 5,000 metres of in-fill drilling with this man-portable rig.
Goldsource intends to use this period of work on processing and interpreting outstanding drilling data, release relevant analytical results once received from laboratory, continue with desktop geological compilation to increase its understanding of the recently drilled targets and work on their geological model and develop a comprehensive drill plan to expand recent discoveries, infill the current resource and test for new discoveries.
With a cash balance of C$7.7 million, no debt and a reduced burnrate during the temporary shutdown, Goldsource is well positioned to weather the current market uncertainty and continue to expand and advance the Eagle Mountain Gold Project as soon as it is safe to do so.
ABOUT GOLDSOURCE MINES INC.
Goldsource Mines Inc. (www.goldsourcemines.com) is a Canadian resource company working aggressively to develop its advanced-stage, 100%-owned Eagle Mountain saprolite and hard-rock gold project in Guyana, South America. From 2016 to 2017, through a gravity pilot plant initiative, the Company completed testing on gravity-only gold production and both dry and wet mining open-pit techniques. Goldsource is now focused on expanding gold resources and delivering subsequent studies for decision-making on a large-scale gold production at Eagle Mountain. Goldsource is led by an experienced management team, proven in making exploration discoveries and in project construction.
Ioannis (Yannis) Tsitos
Goldsource Mines Inc.
For Further Information:
Goldsource Mines Inc.
Contact: Yannis Tsitos, President
Fred Cooper, Investor Relations
Telephone: +1 (604) 694-1760
Fax: +1 (604) 357-1313
Toll Free: 1-866-691-1760 (Canada & USA)
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
CAUTIONARY STATEMENT AND FORWARD-LOOKING DISCLAIMER
This news release contains "forward-looking statements" within the meaning of Canadian securities legislation. Such forward-looking statements concern Goldsource's strategic plans, timing and expectations for the Company's exploration and drilling programs at Eagle Mountain; and information regarding high grade areas projected from sampling results and drilling results. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among other things: conditions in general economic and financial markets; accuracy of assay results and availability of mining equipment; availability of skilled labour; timing and amount of capital expenditures; performance of available laboratory and other related services; and future operating costs. The actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors including: 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 estimations; receipt, maintenance and security of permits and mineral property titles; environmental and other regulatory risks; project costs overruns or unanticipated costs and expenses; availability of funds and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
Neither TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
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