Goldsource Mines (GXS-V) might have gold in its name, and it might be looking for Canadian diamonds, but it was a coal seam intersect that propelled the company’s shares up to new heights.
In Toronto on Apr. 24 the Vancouver-based company’s shares finished a remarkable 108%, or 41 higher at 78 on 1.43 million shares traded. Its previous 53-week high had been just 38 and the company has 17.7 million shares outstanding.
That massive uptick came a few days after the Apr. 22 news that the company intersected coal with a width of between 25 and 35 metres at a depth of 80 metres in two holes roughly 1.5 km apart while drilling for kimberlites.
“I’d liked to say it was well planned, but it was unexpected,” says Goldsource president Scott Drever of the find.
The drill targets were chosen after an airborne geophysical survey returned anomalies that the company thought could be kimberlites. No kimberlites were found and Drever says the anomalies were likely the product of a non-mineral bearing massive sulphide that was intersected below the coal seam.
The program drilled six holes of the planned 22 hole program on its mineral claim blocks in central and eastern Saskatchewan.
Goldsource says the coal intercepts were sampled and submitted for analyses.
While the drill program was originally set to drill 14 holes, Drever says the warm weather caused spring break-up, causing drilling to stop.
He hopes to get 7 holes drilled over the course of the summer, but cautioned that access to the area is difficult due to the severe wetness of the ground. If all 7 holes aren’t drilled in the summer, he says, they will be drilled after the ground freezes.
The remainder of the program is estimated to cost $700,000 and with working capital of roughly $3.6 million Goldsource is well financed to do so.
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