Agoracom: Small Cap Investment - Goldsource Mines Inc - Intercepts 132.6 Metre Coal Zone at Border Project

Discovering Canada’s Coal resources

Intersected 23 metres of Black Coal - Border property 50km north of the town of Hudson Bay, SK

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Intercepts 132.6 Metre Coal Zone at Border Project

posted on Feb 27, 2009 03:50AM

February 26, 2009

Goldsource Intercepts 132.6 Metre Coal Zone at Border Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2009) - Goldsource Mines Inc. ("Goldsource" or the "Company") (TSX VENTURE:GXS) is pleased to report that it has drilled a 132.6 metre intercept of coal zone in the Chemong area of the Border coal project ("Border") near Hudson Bay, Saskatchewan, Canada.

In order to better delineate the coal intervals encountered in the 2008 discovery holes BD08-03 and 03A, and BD08-06 and 06A, both of which intersected substantial coal zones ranging from 28 to 41 metres thick, (see summary press release dated October 3, 2008), a series of -50 degree angle holes (BD09-29, 34, 40, 43 and 47) were drilled from the BD08-03 and BD08-06 discovery hole sites in the Chemong area (see attached map at the following link: http://media3.marketwire.com/docs/gs... ).

Hole BD09-40 drilled 010 degrees north from BD08-03 and encountered 115.7 metres of combined dull to bright coal within an approximately 132.6 metre (est. 100.0 metres true thickness) coal zone with partings.

Hole BD09-34 drilled 250 degrees west from BD08-03 and encountered 72.9 metres of continuous dull to bright coal within an approximately 72.9 metre (est. 55 metre true thickness) coal zone with minor partings.

Hole BD09-43 drilled 155 degrees southeast from BD08-06 and encountered 28.5 metres of combined dull to bright coal within an approximately 54.2 metre (est. 41 metres true thickness) coal zone with partings.

Holes BD09-29, 34, 40, 43 and 47 are summarized below.

----------------------------------------------------------------------------
Hole        From       To  Coal Zone(i)                                Note
         (metres) (metres)    Interval
                               (metres)
----------------------------------------------------------------------------
BD09-29     96.5    112.5         16.0    BD08-03 site-50 degree angle hole.
                                              Estimated True thickness 12 m 
----------------------------------------------------------------------------
BD09-34    109.6    182.2         72.9    BD08-03 site 50 degree angle hole,
                                               Estimated true thickness 55m.
----------------------------------------------------------------------------
BD09-40    108.8    241.4        132.6   BD08-03 site -50 degree angle hole,
                                              Estimated true thickness 100m
----------------------------------------------------------------------------
BD09-43    104.5    159.0         54.5   BD08-06 site -50 degree angle hole.
                                               Estimated true thickness 41m
----------------------------------------------------------------------------
BD09-47     84.0    108.5         24.5   BD08-06 site -50 degree angle hole.
                                               Estimated true thickness 18m
----------------------------------------------------------------------------
(i) Visual identification of Coal Zone contains both coal and partings. One
    hole drilled in the Chemong area, BD09-31, contained no significant coal
    intercepts.

"Intercepting a coal bed of over 100 metres in thickness is absolutely stupendous," said J. Scott Drever, President. "Think of it as a 33-story tall building. We are unaware of any other such coal occurrence in North America. Our plan for the area surrounding discovery holes BD08-03 and BD08-06 is to expand the coal zones and identify sufficient quantities of quality thermal coal such that we can delineate an economic resource that has the potential to be developed."

With each successive drill hole, Goldsource is establishing a more comprehensive understanding of the geological and depositional characteristics of the coal at Border. The depth and extent of coal found in the recent directional drilling of the Chemong area indicates that re-drilling of some previously completed holes in this area to depths below 100 metres is likely warranted as additional coal zones may be discovered at depth.

Hole numbers BD09-11, 14 - 17, and 19 which were previously reported as having no significant coal intercepts are being re-examined for possible extension drilling below a depth of 100 metres where new coal intercepts (BD09-34 and 40) in this area are showing exceptionally thick coal intervals (see attached map). Initially, holes BD09-11, 14-17 and 19 were drilled until they intersected limestone thought to underlay the coal zone, or to a maximum depth of 150 metres, whichever came first. The occurrence of one or more limestone (or re-sedimented limestone/dolomite) beds, may appear sporadically above the coal and previous holes may have stopped prematurely within this limestone unit(s) before reaching the coal zone. This theory will be drill-tested during the next few weeks.

From the holes drilled to date, the broader sub-basins appear to be comprised of discrete features containing exceptional coal intervals of up to approximately 100 metres thick with their limits defined by certain geophysical signatures and the underlying Devonian limestone. It is believed that the contours of underlying Devonian limestone continue to be a critical factor in defining the sub-basins and this information is being used to target other areas of potential coal deposition at Border and the Company's other properties.

Initial identification of the intervals of the coal zone in the table above is based on visual characteristics. The Company cautions against placing undue reliance on the visual observations of the coal until the results of the analytical work have been announced.

Sampling and laboratory test work at Loring Labs in Calgary has commenced with initial results anticipated in March 2009. Down-hole geophysics has been completed on all holes and adjustments to coal seam thickness may occur when reporting final results.

N. Eric Fier, CPG, P.Eng. and Qualified Person for this news release has reviewed and approved its contents.

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of coal permits and mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in commodity product prices; currency fluctuations; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

J. Scott Drever, President

GOLDSOURCE MINES INC.

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