Canadian mining firm increases stake in Region Seven

Apr 06, 2018 News

Canadian mining company, Goldsource Mines Inc., through its subsidiary and local joint venture partner in Guyana, Kilroy Mining Inc., has entered into a definitive agreement to purchase additional property from a local seller just outside the company’s Eagle Mountain mine at Potaro-Siparuni, Region Eight.
The new area under consideration is known as the Bishop Growler property, located along the projected mineralized trend some three kilometres from the Company’s 100% owned Eagle Mountain Gold Project and surrounded by Eagle Mountain’s existing 5,030-hectare prospecting licence.
“We are pleased to have concluded this definitive agreement to exclusively explore this strategic land package proximal to Eagle Mountain,” said company president, Yannis Tsitos, President.
Bishop Growler consists of one medium scale mining permit and covers an area of about 2.5 square kilometres. The 15 small scale mining claims have been converted into the single medium scale permit. According to the company, this permit is currently valid and in good standing.
According to Tsitos, the new property along with the surrounding prospecting licence, provides access to the northeastern gold mineralized trend, which has never been systematically explored or drilled, but has returned surface grab and rock samples with high prospecting value.
“We have now initiated an exploration programme at Bishop Growler, which includes geological mapping, auger and diamond core drilling at selected locations, geochemical sampling along trenches and sampling of historical artisanal gravity tailings. We plan to include results from this exploration programme at Bishop Growler and the neighbouring Eagle Mountain prospecting licence areas in the Company’s upcoming revised resource estimate,” Tstitos outlined.

Goldsource operations at Eagle Mountain mine, Potaro-Siparuni, Region Eight.

Pursuant to the definitive agreement, Goldsource can earn a 100% interest in the Property by making payments at various intervals starting with US$75,000 upon execution of the definitive agreement, which has been paid. Based on the agreement, US$150,000 is due in January 2019; US$150,000 in January 2020; US$150,000 in January 2021; and US$500,000 if the company exercises its option to fully acquire the property.
The option can be terminated without cost at any time with one-month’s notice.
As additional consideration for the purchase of the property, Goldsource said the current owner will be entitled to receive an alternative piece of artisanal mining property in the vicinity of Eagle Mountain, no less in area than the size of Bishop Growler, provided that the determination of the location of such area shall be at the exclusive discretion of the Company.