(TSX-V: GXS) (OTCBB: GXSFF) (FWB: G5M)
VANCOUVER, Dec. 14, 2016 /PRNewswire/ - Goldsource Mines Inc. ("Goldsource" or the "Company") reports that the existing loan facility (the "Facility") announced on November 3, 2015 entered into with Mitan Holdings Ltd., a company controlled and directed by a director of the Company, has been amended and increased by US$300,000, (the "Additional Facility") for a total loan facility of US$1,300,000.
The proceeds will be used for the immediate purchase, delivery and early Q1 2017 installation of a Krebs cyclone in tandem with the Falcon concentrators for further potential increase in gold recoveries at the Eagle Mountain Gold Project, together with installation of a separate secondary gravity/sluice box plant (excludes concentrators) for increased gold production, and general working capital.
Preliminary data from ongoing optimization programs suggests that Falcon recoveries have increased from an estimated 15% and 17% in September and October, respectively, to 28% in November. Further testwork and optimization including cyclone and sluice processing for potential increased recoveries will be completed in Q1 2017.
The Company will repay the principal outstanding under the Additional Facility by not later than the date which is two (2) months from the date of the advance of the Additional Facility.
The revised terms of the Facility provide that the Company will repay US$50,000 of the principal outstanding under the Facility commencing on January 23, 2017, and on the 23rd day of each month thereafter until payment of the balance outstanding due June 21, 2017.
The Qualified Person under National Instrument 43-101 - Standards of Disclosure for Mineral Projects for this news release is N. Eric Fier, CPG, P.Eng, and Chief Operating Officer for Goldsource, who has reviewed and approved its contents.
ABOUT GOLDSOURCE MINES INC.
Goldsource Mines Inc. (www.goldsourcemines.com) is a Canadian resource company that is currently in the Proof of Concept Phase at it 100%-owned Eagle Mountain Gold Project, located in Guyana. Goldsource is led by an experienced management team, proven in making exploration discoveries and in project construction.
Ioannis (Yannis) Tsitos
Goldsource Mines Inc.
CAUTIONARY STATEMENT AND FORWARD-LOOKING DISCLAIMER
Management's production decision for the Eagle Mountain Gold Project is not based on a feasibility study of mineral reserves demonstrating economic and technical viability. This project has a much higher risk of economic or technical failure and may adversely impact the Company's projected profits, if any. The risks associated with this decision are set forth in the Company's latest annual management's discussion and analysis available on the Company's website and the under Goldsource's SEDAR profile on www.sedar.com.
This news release contains "forward-looking statements" within the meaning of Canadian securities legislation. Such forward‑looking statements concern Goldsource's strategic plans and expectations for the development of the Eagle Mountain Gold Project based on the PEA and variations to mining plans as mining operations progress and decrease gold production is encountered; gold recoveries and gold production rates of the Eagle Mountain Gold Project; and expectations regarding the Company's ability to manage capital resources and meet working capital requirements. 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; ability to realize the PEA and develop and finance the project and ability to positively adjust mining operations when assumptions and expectations on which mining operations are based are not fully met; accuracy of the interpretations and assumptions used in calculating inferred mineral resource estimates; 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; uncertainty as to actual capital costs, operating costs, production and economic returns at the Eagle Mountain Gold Project; reliance on the PEA for initial mining operations and on management decisions to appropriately adjust mining operations and depart from mining plans contemplated in the PEA when considered warranted; 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 TSX-V) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Goldsource Mines Inc.