Goldsource Mines Down 50% on Poor Drilling Results

Goldsource Mines Inc. (GXSFF.PK) and the rest of the Sasktachewan coal play gang were in freefall Monday after Goldsource said that results of its first drill hole following its discovery of coal earlier this year, uncovered less coal than hoped for. 

Goldsource shares were down a whopping 50% to C$6.45 in Monday morning trading. The price is a far cry from the stock's C$19.60 record high on June 25, but on the bright side, it still represents a huge premium on the company's C$0.30 share value before the initial discovery was made in April.

Other companies who have staked into the area surrounding Goldsource's initial discovery well near Hudson's Bay, Saskatchewan, are also getting hammered including  Saturn Minerals Inc. [SMI.V] & Swift Resource Inc. [SWR.V] down 45% and 33% respectively, and North American Gem Inc. [NAG.V], down 14%, just to name a few.

Goldsource president J. Scott Drever said:

Our initial assumptions were based on the possibility of a main coal basin with more than one sub-basin. While these holes did not encounter the thickness of coal intercepted in the discovery holes, they are important to help establish the orientation of the sub-basins.

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[billp37]

San Juan coal mine warning sign.

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