Goldsource drills 35.3-metre coal zone at Border

2009-03-02 08:26 EST - News Release

Mr. Scott Drever reports

GOLDSOURCE ANNOUNCES NEW COAL DISCOVERY AT BORDER PROJECT, SASKATCHEWAN; SPLIT-LEAF AREA PRODUCES 35.3 METRE COAL ZONE INTERCEPT

Goldsource Mines Inc. has made a new coal discovery in the Split-Leaf area (subbasin) on its wholly owned Border project located near Hudson Bay in Saskatchewan.

The Split-Leaf subbasin is located approximately seven kilometres south from the Chemong subbasin area where Goldsource drilled a 132.6-metre coal zone intercept reported in Stockwatch on Feb. 27, 2009, and approximately 11.5 kilometres from the Pasquia subbasin area where recent drilling has indicated coal zone continuity over a two-square-kilometre area.

The Pasquia area remains open in all lateral directions, as reported in Stockwatch on Feb. 27, 2009.

The Split-Leaf new coal discovery has been made by drilling a geophysical anomaly with signatures similar to those exhibited by the 2008 discovery holes and numerous other holes which intercepted significant coal intercepts at the Border project.

Hole BD09-41 intercepted thick coal intervals of 25.5 metres of continuous dull to bright coal within an area of approximately 35.3 metres of coal, including partings.

This discovery is further confirmation that the geophysical techniques and interpretation being used by the company are successful in identifying coal-bearing subbasins.

This new area is currently open to expansion laterally in three directions and additional holes are planned to determine the extent of this new discovery. The holes drilled at Split-Leaf are vertical and the coal zone intervals are estimated true thicknesses.

J. Scott Drever, president, stated: "Our overall plan continues to be to identify as many priority areas at Border as we can in this winter's program and to establish confirmation of the various geophysical signatures which are indicative of subbasins that correlate with the presence of thick intercepts of coal. One drill rig has been dedicated to identifying new areas to the south of the original discovery area and it is particularly gratifying to see that one of the first targets to be drilled has encountered significant coal intervals.

There are additional geophysical anomalies within the Border project area that indicate potentially much broader subbasins that need to be tested and if they prove to be coal bearing this would bring a new dimension to the overall potential of the coal deposits within Border."

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

Sampling and laboratory testwork at Loring Labs in Calgary for the initial holes drilled in this program have commenced with initial results anticipated in March. Downhole geophysics has been completed on all holes and adjustments to coal seam thickness may occur when reporting final results.

N. Eric Fier, CPG, PEng, and qualified person for this news release, has reviewed and approved its contents.

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