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InvestmentPitch: Goldsource Mines (TSXV:GXS) (FSE:G5M) Announces Results of Preliminary Economic Assessment Report for Eagle Mountain Gold Project in Guyana -

Vancouver, BC, August 1, 2014 -. Goldsource Mines (TSXV:GXS) (FSE:G5M) has
announced the results of its Preliminary Economic Assessment Technical Report
for the company's 100% owned Eagle Mountain gold project, a near-surface
saprolite oxide resource located in Guyana, South America, approximately 230
kilometres southwest of the capital, Georgetown.

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Conceptually, the PEA results suggest that the project has low capital and
operating costs, minimized technical risk and a short development timeline.

Not considered in the PEA are the in-situ "fresh-rock" resources of Indicated
2,331,000 tonnes @ 1.52 grams per tonne gold containing 114,000 ounces and
Inferred 13,433,000 tonnes @ 1.13 grams per tonne, containing 486,000 ounces,
both at 0.5 grams per tonne cut-off.

Ioannis (Yannis) Tsitos, Goldsource's President stated: "We are extremely
pleased with the PEA results for this relatively low-risk
phase of development for the Eagle Mountain gold project. The results exhibit
very attractive Rates of Return. The creativity of the phased construction
approach, its modular design and the simplicity of the mining and processing
of the low-strip ratio saprolite material have resulted in an optimized
development scenario for this deposit. In addition, the inventory of
potentially recoverable ounces of gold in the oversize materials and the
underlying hard rock resource provide us with a significant 'blue-sky'
potential for further development

Following are some highlights of the Base Case economic estimates, using a
gold price $1,250 per ounce.

* Pre-tax Net Present Value of $69.4 million and after-tax NPV of $45.6
million, using a 5% discount rate
* Pre-tax NPV of $61.1 million and after-tax NPV of $39.8 million, using a 7%
discount rate
* Pre-tax Internal Rate of Return of 84% and after-tax IRR of 63%
* Phase 1, pre-production capital costs of $5.9 million, includes a 15%
* Total capital costs including proposed Phase II, III, and IV expansions,
and sustaining capital are estimated at $24.2 million
* Cash operating costs, exclusive of sustaining capital, for saprolite mine
life averages $480 per ounce gold, including a 15% contingency
* Cost per tonne of mill feed averages $8.96
* Pre-tax undiscounted operating cash flow before capital expenditures
totalling $123.4 million.
* 8-year Life of Mine Production PEA mine plan totalling 8.6 million tonnes
at an average grade of 1.20 grams per tonne gold (diluted and recoverable).
* Of the 8.6 million tonnes, only 7.3 million tonnes (undersize sub-2mm)
grading 1.20 g/tonne gold will be conceptually processed. The remaining
tonnes (oversize larger than 2mm) would be stockpiled for further
metallurgical test work and potential further processing.
* Conceptually, the first four years of gold production would be 5,600,
14,400, 21,600 and 28,800 ounces gold, respectively.
* 8 year life of mine production estimates 168,700 ounces gold from
gravity-only processing at estimated 60% recovery
* Inventory of 161,900 oz Au in settlement ponds from gravity-only processing
rejects for potential future reprocessing using standard technologies.

For more detailed information, please refer to the company's latest news
release. The NI 43-101 Technical Report is being completed by Toronto-based
A.C.A. Howe International and will be filed on Sedar.com within 45 days.

N. Eric Fier, Goldsource's Chief Operating Officer commented: "Through our
experience, we have applied the responsible phased-approach
business model to the Eagle Mountain gold project in order to minimize
initial capital and project risk. This conceptual approach encompasses a
"Phase I" starter open cut for mining at 1,000 tonnes per day with subsequent
low impact and low cost gravity-only processing. Upon successful completion
of Phase I, the Company plans to systematically install and operate three
additional similar plants over a four-year schedule with a cumulative rate of
3,500 to 4,000 tonnes per day.Conceptually, additional processing plants will
be paid for through operating cash flow. The project has several potential
opportunities to accelerate PEA-defined production once initial success in
Phase I is achieved

The company does not presently have the funds to carry out these developments
and plans to source the funds through equity or debt financing or a
combination thereof.

Goldsource is trading at $0.26 and with 79.1 million shares outstanding, the
company is capitalized at $20.6 million. For more information please visit
the company's websitewww.goldsourcemines.com, or contact Fred Cooper at
1-866-691-1760 or emailinfo@goldsourcemines.com.

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Barry Morgan, CFO


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: InvestmentPitch via Globenewswire


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