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Goldsource Mines starts construction of its Guyana flagship

6th March 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – TSX-V-listed Goldsource Mines has started construction of its $5.9-million Eagle Mountain gold project, in Guyana.

"The commencement of construction activities at Eagle Mountain is a huge milestone for the company and we are very excited at the prospect of Goldsource becoming a low-cost gold producer in 2015,” president and director Yannis Tsitos said on Thursday.

The first phase of the openpit mine project entailed building a 1 000 t/d gravity plant, which was expected to deliver gold at a cash operating cost of $480/oz over the eight-year mine life.“The Phase 1 development at Eagle Mountain is fully financed, the mine area is fully permitted for operations and mine site preparation and processing plant construction has begun," Tsitos added.

The development activities were currently focused on buying a 100 t/h processing plant from Sepro Minerals, based in Langley, Vancouver; detailed engineering and final design of the Sepro processing plant, which was near completion; and the construction of the plant, which was expected to take place from the current quarter to the third quarter.

Further, Goldsource was busy rehabilitating the existing 10 km road between the town of Mahdia and Eagle Mountain Gold, procuring longer-lead mining equipment, undertaking a preproduction drilling programme for confirmation and condemnation, rehabilitating and upgrading the camp facility and recruiting key operations personnel. Site preparation for the plant and initial mining area was expected to start during the second quarter.

Based on a September 2014 preliminary economic assessment, sustaining capital and future expansions were expected to be paid for through operating cash flow.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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