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Goldsource Mines Confirms Coal at Border, Expands Exploration

Goldsource Mines has completed some of the most astounding drilling in the history of coal exploration in Canada, if not the world. Perhaps that alone doesn’t explain the company’s meteoric rocket from 30 cents per share to $19 per share last year in the weeks after the first two discovery holes were announced. The markets have since taken a beating on many fronts and with them Goldsource’s share price has come down from the skies. All the better for astute investors, we think.

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The company’s June 25, 2009 press release wrapped up the sum total of 2008/2009 drilling — the first ever exclusive coal exploration program on the property. Goldsource has now sent to its labs samples from 38 holes averaging an incredible 23.4 metres aggregate coal. This isn’t the lignite coal you so often see used for cheap, dirty energy in the south of Saskatchewan. It’s higher valued, bituminous to sub-bituminous grade. It has a higher caloric value, meaning greater power, heat, energy, etc.

There is an excellent photograph around that aptly demonstrates what 20 metres of coal looks like. That white splotch at the bottom of the cliff is a vehicle with a trunk full of coal. And after you look at it, I want you to think of multiple kilometres of this in all directions. And then multiply this by six, because that’s what the company has already found, according to the data they’ve sent to the labs.  Now there’s no resource estimate out yet. That’s next.

Goldsource is tackling a lot this summer; a resource estimate could prove to be the tip of the iceberg both in terms of workload and in terms of coal in the ground. With Fugro Geophysics completing approximately 5,000 kilometres of new airborne survey over areas not previously flown at Border, Ballantyne, Pine River and a number of other separate target areas within Saskatchewan and Manitoba, it’s more than conceivable that new coal bodies will be discovered. In part this is because of the geological fingerprints in this ancient estuary. “Each of the known coal deposits within the Border Project area are identifiable with a distinctive geophysical signature which now allow potential targets to be prioritized with a reasonably high degree of certainty,” Scott Drever wrote.

Meanwhile, ongoing drilling at Border could add fuel to the fire. As the team at Goldsource have said on camera and off, a lot has been learned about the nature of the coal deposits here: These are “discrete” deposits that are interconnected across an enormous area. And drilling to date indicates that there could be a lot more of the same. In the site video, you’ll see a chapter entitled: “Step out holes paint a clearer picture.” VP Operations Wendy Mathison explains that although the original conception of one large coal deposit has been modified, step out drilling has consistently turned up these new deposits. For example, a cross section for the Pasquia 02 Area shows good coal continuity based on analysis and down hole geophysical logs over an area of approximately 800 metres by 1100 metres. The other five known areas appear to be similar in size and shape. This summer, the company expects to complete ten to fifteen holes on Border, plus some ten holes on the Ballantyne Project in Saskatchewan and about fifteen holes on the Pine River Project in Manitoba for late summer or early fall.