Number of coal deposits found reaches critical mass says Goldsource president

Vancouver – A summer drill program at the Border coal property in Saskatchewan has helped revive the share price of Goldsource Mines (GXS-V). Since Goldsource began releasing drill hole results in late July its share price has nearly doubled to over $2.

The latest two batches of drill hole results include coal intercepts in 13 holes over widths ranging between 5 metres and 62 metres.

The drill program is revealing a patchwork of discrete, but thick, coal deposits. Recent drilling added a new sub-basin to the Border property, Niska, that contains three coal deposits and brings to 15 the total number of such deposits Goldsource has found within a 15-km radius.

In late July Goldsource reported a 62-metre coal intercept at Niska in hole 107 starting 69 metres downhole. The latest drill hole results adds a few more significant intercepts at Niska, including 50 metres coal in hole 108 starting 110 metres downhole.

The late summer blooming of Goldsource’s shareprice contrasts starkly with a spring withering that followed a set of drill hole results which began to outline the patchwork-like layout of the Border property’s coal deposits. Goldsource president Scott Drever then explained to The Northern Miner that the loss was largely due to the unrealistically high expectations of the market on Goldsource to find a gargantuan, contiguous coal deposit.

The patch-work of deposits – if thick – seemed to disappoint.

But now, with a surging shareprice, Drever agrees that the market appears to have reevaluated its expectations, saying that Goldsource has reached a critical mass with the number of deposits it has found. “We have 15 of these things,” he says, “all within a distance that would support a power plant.”

He also credits European investors – who started picking up Goldsource in much greater volumes after a respected newsletter writer covered the company – with bolstering its shareprice. “European investors may have a different view of the value of coal (than North American investors),” he says.

Now that Goldsource has completed its summer drill program Drever says the company will compile results as it works towards putting together Border’s first resource estimate by early fall.