Goldsource Mines (GXS-V) might have gold in its name, and it might be looking for Canadian diamonds, but it’s a coal seam intersect that has propelled the company’s shares to new heights.
Much of the massive uptick came a few days after an April 22 announcement that, while drilling for kimberlites in Saskatchewan, it had intersected coal over 25 to 35 metres at a depth of 80 metres in two holes roughly 1.5 km apart.
At presstime the Vancouverbased company’s shares were trading for $4.25 — a tidy sum considering they had been trading for just 19 through most of April and were at just 30 the day news of the coal intercepts were released.
“I’d liked to say it was well planned, but it was unexpected,” says Goldsource president Scott Drever of the find and the subsequent gains in market cap, which all of sudden stands at $76 million.
Drever explains that 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 inter- cepts were sampled and submitted for analyses.
While the drill program was originally set to drill 14 holes, Drever says the warm weather triggered spring break-up, causing drilling to stop.
He hopes to get seven 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 seven holes aren’t drilled this 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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