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Goldsource
Receives Saskatchewan Coal Permits;
Confirms Summer Drill Program
June 17, 2008
VANCOUVER, B.C. June 17, 2008 - Goldsource Mines Inc. (the
�Company�) announces that it has received confirmation of issuance of an
initial 55 coal permit certificates from the Saskatchewan Ministry of
Energy and Resources for coal applications filed by the Company to cover its recently
announced coal discovery near Hudson Bay, Saskatchewan. The Company has
also been advised that issuance of the balance of the 179 coal permit
certificates applied for will occur shortly. The coal applications
comprise a total of approximately 143,000 hectares
(1,430 square kilometres). The area covered by the initial 55
permits is approximately 42,000 hectares (420 square kilometres) and is
centered on the two core drill holes which resulted in the discovery of
the coal intercepts previously announced (news releases dated April 22
and April 28, 2008). The permits allow the Company to explore the
area for coal and are for a period of one year with two possible 6 month
extensions and convertible to a 15 year lease.
The Company is currently permitted to drill an additional
seven holes in the area. The receipt of the permits confirms the Company�s
title to the area and makes it possible to proceed with its planned drill
program in July and August. This program has been designed to: 1) prove
continuous coal seam thicknesses; 2) provide broader and better information
on coal quality; 3) give further insight into the orientation of the
coal basin(s); and 4) provide initial inferred resources.
The initial target size to be tested has the potential to
contain 2.0 to 4.0 billion tonnes of coal. This target tonnage is
conceptual in nature. There is neither sufficient drilling nor information
available to establish a resource nor is there any assurance that such a
resource will be identified through further exploration work. The
target size is based on the conditions set forward in GSC Paper 88-21 for the
standardized reporting of coal resources and reserves in Canada. The
following assumptions 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
data from the nearest point (drill hole) is 1200 to 3600 metres for inferred
resources. The area defined by the spacing of the additional seven drill
holes with the two existing holes will be approximately 17 km long and 9
km wide, and
- The in-situ bulk density for
sub�bituminous to bituminous coal is approximately 1.35 g/cm3.
Upon successful completion of the initial drill program,
the Company plans to complete a NI 43-101 technical report including initial
resource estimates. Also, based on success of drilling, a preliminary
assessment to quantify potential markets, transportation, capital
requirements and operating costs will be considered. Permitting of a major
drill program for the winter of 2008-2009 is currently underway.
As previously announced (news release dated
May 5, 2008), the coal intercepts are from two core holes
located 1.64 kilometres apart and represent 26 metres and
32.5 metres, respectively, of coal seam, including 22.6 metres of
continuous coal in each hole. Most of the coal from the
two intercepts is ranked as High Volatile Bituminous C and
Sub-Bituminous A and is believed to be from the Mannville/Swan River Group of
Cretaceous age. The two core drill holes are located approximately
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.
This news release contains forward-looking statements,
which address future events and conditions, which are subject to various
risks and uncertainties. The Company�s actual results, programs and financial
position could differ materially from those anticipated in such
forward-looking statements as a result of numerous factors, some of which 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 and security of
coal permits and mineral property titles; project cost overruns or unanticipated
costs and expenses, fluctuations in commodity product prices; currency
fluctuations; 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, undue reliance
should not be placed on forward-looking statements.
On Behalf of the Board of Directors of
Goldsource Mines Inc.
�J. Scott Drever�
J. Scott Drever, President
For further information, please contact:
Fred Cooper
Telephone: (604) 691-1760
Fax:
(604) 691-1761
Email: info@goldsourcemines.com
Website: www.goldsourcemines.com/
405-1311 Howe Street
Vancouver, BC V6Z 2P3
The TSX-Venture Exchange
has not reviewed and does not accept responsibility for the accuracy or
adequacy of this release.
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