FOLLOWING Guyana Goldfields Inc last week, another Canadian mining company, Goldsource Mines Inc  this week  reported satisfactory progress in construction of its own gold mine located at Eagle Mountain in Region 8 (Potaro/Siparuni), disclosing that it is targeting  the commissioning  of a 1,000 tonnes per day open pit gravity plant  by year end.Goldsource Mines said that construction is proceeding on schedule and on budget  for the recovery of  an estimated 980,000 ounces of gold (188,000 ounces  indicated and 792,000 inferred )  with strong potential  for expansion.

The plant  has estimated pre-production capital costs of US$5.9 million but post-commissioning cash operating costs of under US$500 per ounce of gold.
Yannis Tsitos, President and Director stated, “We are pleased with Eagle Mountain’s construction progress with the first shipment of processing plant equipment on budget and schedule in June. This new equipment will include two SB2500 Falcon concentrators, gold recovery room, refinery, pumps, electrics and on-site laboratory. We have assembled a strong team of experienced professionals to manage the construction of Eagle Mountain and fully expect to deliver Phase I on-time and budget.”

Tsitos said further that several  significant construction activities  are currently on-going at Eagle Mountain.
The detailed engineering of a Sepro gold processing plant  has been completed  while delivery of the first package for the  gold processing plant from  Sepro Minerals Systems from Canada and the United Kingdom  is 95% complete.

Delivery  of  Package No.2, another section  of the said processing  plant  from Canada and Mexico  is 20% completed.
10K ROAD, EIGHT NEW BRIDGES
Rehabilitation of the existing 10-kilometre road between Mahdia town and Eagle Mountain camp including construction of eight new bridges  is 75% completed while  procurement  and purchase of mining equipment, including the most recent acquisition of a new excavator and loader, is 50% completed.

Other works in varying stages of completion include pre-production auger drilling program for confirmation and condemnation (75% completed); recruitment of key operations personnel (15% completed).;  camp facility rehabilitation and upgrades (15% completed); site preparation of plant and initial mining area (10% completed) and  procurement  and purchase of secondary gold processing plant for exploiting existing old tailings area (10% completed).
The Eagle Mountain project, located close to Mahdia  is a joint venture between Goldsource Mines and  local company Kilroy Mining Inc.

The two companies decided to collaborate in August last year since under Guyana’s  laws  a medium scale mining permit can only be held by a Guyanese national.