CANADIAN Mining Company Goldsource Mines and local company Kilroy Mining Inc. have teamed up to fast track medium-scale gold mining at Eagle Mountain in Mahdia, Region 8 (Potaro/Siparuni).

Kilroy Mining Inc. recently received a medium scale mining permit from the Guyana Geology and Mines Commission (GGMC) for operations on a 250-hectare portion of Goldsource’s Eagle Mountain gold deposit location.

The Eagle Mountain PL is held by the Company’s 100%-owned subsidiary in Guyana, Stronghold Guyana Inc.

A release from Goldsource Mines said the company had entered into agreement with Kilroy, since, under Guyana’s laws, a medium-scale mining permit can only be held by a Guyanese national. The permit grants permission to mine gold, diamonds, precious metals and precious minerals within the permitted area located in the Potaro Mining District #2.

Kilroy, as holder of the permit, has granted to Goldsource’s Stronghold Guyana Inc. the exclusive right to conduct mining operations on the property, including any additional areas acquired by Kilroy. Stronghold will fund all expenditures on the property, and receive 100% of all revenues, subject to applicable Government royalties and a 2% net smelter return royalty to Kilroy as compensation for its participation.

As part of the agreement, Goldsource agreed to issue to Kilroy 250,000 common shares of the company, subject to a 12-month hold period and the approval of the TSX Venture Exchange.

Ioannis (Yannis) Tsitos, Goldsource’s president, stated: “Following the recent announcement of the positive results of our preliminary economic assessment for the Eagle Mountain gold deposit, we are extremely pleased with the grant of the permit.

“The project is now fully permitted for mining activities, and ready for construction financing. The company and its management are working aggressively with a staged production growth strategy to deliver real value to shareholders and to all other project stakeholders.”
Written By Clifford Stanley