During the summer program 12 core holes totaling approximately 2,100 metres have been drilled, using a helicopter supported drill rig. The coal intervals occurred in the Niska Sub-basin included holes BD09-105 and BD09-107 with true aggregate thicknesses of approximately 28.0 metres and 62.0 metres respectively of dull to bright coal with similar visual and geophysical characteristics.

The drilled holes BD09-105 and BD09-107 are situated around 10 to 15 kilometres northeast and north, respectively, of the discovery Areas Chemong 03 and Chemong 06 and are also near to rail and highway access. With the exception of hole BD09-106, all the holes drilled were designed to test new targets outside the discovery area. The BD09-106 hole was a re-drill of DB08-02 which was previously terminated in a coal zone.

J. Scott Drever, president of Goldsource Mines, said: “The primary objective for our continued exploration efforts has been to identify priority Areas that potentially contain sufficient coal resources that may be economically developed. The “Niska Sub- Basin” is a new sub-basin containing three Areas with significant coal intercepts. This brings the total number of Sub-Basins to six, within which we have identified a total of 11 discrete substantial coal deposits within the Border permit area. The dimensions of the coal deposit Areas encountered to date on the Border Property range from approximately 400 metres by 400 metres up to 1.5 kilometres by 1.0 kilometre based on a combination of drill holes and geophysical signatures. We have hit significant intervals of coal in 8 of the 12 holes drilled so far during the summer program.”

The company has completed airborne geophysics over the remaining areas of the Border property which resulted in the discovery of several new target areas. The company has also completed approximately 5,000 line kilometres of airborne geophysics which is expected to identify potential coal deposits on its other properties in Saskatchewan and Manitoba.

Drill holes BD09-99, BD09-102, BD09-103 and BD09-104 comprised no coal intercepts. These holes were drilled to test airborne geophysical anomalies with geophysical signatures, which are different from the coal bearing Sub-basin signatures which the company has developed at Border.

Sub-bituminous coal at Border around 100 metres in thickness occurs in the Cretaceous Mannville Group (mudstones and sandstones) located in depressions (sub-basins and troughs) within the underlying Devonian limestones. Lower Cretaceous lithologies logged in drill holes at Border include the Viking, Joli Fou, Spinney Hill and Cantuar Formations. All the coal deposits at Border have been located in the Cantuar Formation. The Drilling is continuing and this program would complete approximately 16 drill holes in new targets at Border.