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Goldsource doubles down on Salbora

Goldsource Mines expects to complete 4,000-5,000m of drilling on the Salbora discovery by September as recent high-grade intercepts and a reinterpretation of historic geophysical surveys point towards the potential for multiple mineralised zones.
Goldsource doubles down on Salbora Goldsource doubles down on Salbora Goldsource doubles down on Salbora Goldsource doubles down on Salbora Goldsource doubles down on Salbora

Goldsource expects to undertake between 4,000-5,000m of drilling on the Salbora discovery by September

Goldsource shares are up about 240% since the start of 2019, boosted by the announcement mid-January of the new high-grade discovery only 1.5km from the advanced Eagle Mountain project, in Guyana.

At Eagle Mountain, work is focused on delivering a feasibility-level study for a large-scale operation, following pilot-plant scale, gravity-only gold production during 2016-2017.

The first two diamond core holes on Salbora returned 40m (estimated true width) grading 6.52 grams per tonne gold and 17m grading 2.82g/t.

Now the results from the reprocessing and re-interpretation of the 2007 airborne magnetic and radiometric surveys obtained from previous owner IAMGOLD are adding incentive to return to the discovery zone with more firepower in the form of a second diamond drill rig that is currently being mobilised.

"The re-interpretation of the 2007 airborne magnetic and radiometric surveys suggest that Salbora is located within a corridor of strong structural control with several subparallel structures indicating the potential for multiple mineralised zones related to these structures," CEO Yannis Tsitos said.

He said there was a direct relationship between sulphide content and gold grade at Salbora, prompting management to deploy a ground induced polarisation survey to cover about 5sq.km to help identify sulphide-rich zones within 250m from surface. The company would also continue step out drilling at Salbora.

The reinterpretation of the geophysical survey showed steeply dipping non-mineralised dolerite dykes appeared to be associated with strong-lined magnetic responses, trending mostly north-east.

The company said a distinct northwest-southeast trend comprising several subparallel lineaments effectively crosscut the dolerite dykes, which was where the Salbora discovery is.

This suggests the presence of a 400m-500m wide by 3km-long structurally controlled zone with three-dimensional magnetic modelling, suggesting an intrusion is present at a depth of several hundred meters beneath the northern part of this zone.

The company plans to follow up on priority geophysical anomalies with ground IP and high-resolution ground magnetics before the end of June.

Goldsource (TSXV:GXS) has a market capitalisation of C$53.13 million.