- Average throughput of 500 tonnes per day (tpd) in November 2016 and 750 tpd for December 2016, down from the previous guidance of 1,200 tpd in November and 1,500 tpd in December 2016.
- Average net recovery to dore of 20-25%, down from budgeted net gold recovery of 25-30% for H2 2016.
- Average head-grade of 1.2 g/t gold, down from an average head-grade of 1.4 g/t gold.
The Company produced 137 ounces of gold in September and 78 ounces of gold in October. Production during these months was materially impacted by equipment related downtime and water shortages due to the dry season. Critical equipment is currently being upgraded to reduce downtime and a new reservoir is expected to be online in mid-November which should address water availability. Onsite management is also testing the potential to improve throughput by liberating more gold from the oversize material using a small crusher. The Company is working closely with Sepro Mineral Systems Corp., designers of the Eagle Mountain plant, to understand and test the current plant recoveries of 20 to 25% versus lab test work showing optimized gravity recoveries of 50 to 60% that was completed for the Eagle Mountain PEA Technical Report.Outlook The sub-optimal performance of the gravity recovery plant requires further test work which will result in a delay in the phased expansion of the Eagle Mountain Mine. The Company has deferred Phase II capital purchases in order to focus funds on plant and recovery optimization rather than expansion. Management is targeting the completion of further test work on plant optimization with potential improvement to gold recovery rates by mid-December. As of November 14, 2016, Goldsource has C$686,000 in cash (including C$261,000 in restricted cash). The Company is exploring financing alternatives to address working capital requirements and fund optimization capital to increase throughput and recovery of the Eagle Mountain process plant. 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 President Goldsource Mines Inc.||For Further Information: Goldsource Mines Inc.Contact: Ioannis (Yannis) Tsitos, PresidentFred Cooper, Investor RelationsTelephone: +1 (604) 694-1760Fax: +1 (604) 694-1761Toll Free: 1-866-691-1760 (Canada & USA)Email: firstname.lastname@example.orgWebsite: www.goldsourcemines.com570 Granville Street, Suite 501Vancouver, British Columbia V6C 3P1|
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