Any news on your coal play? Up over 30% last Friday.
British Columbia Securities Commission
Tel: 604 899-6500 Fax: 604 899-6506 Toll Free: 1 800-373-6393 www.bcsc.bc.ca
P.O. Box 10142, Pacific Centre, 701 West Georgia Street, Vancouver, BC, Canada V7Y 1L2
2012 BCSECCOM 65
Cease Trade Order
Goldsource Mines Inc.
Section 164 of the Securities Act, R.S.B.C. 1996, c. 418
¶ 1 Goldsource Mines Inc. (Goldsource) is a mineral exploration company with offices in Vancouver, British Columbia. Goldsource is a reporting issuer in British Columbia. Its securities are listed on the TSX Venture Exchange.
¶ 2 On February 28, 2011, Goldsource issued and filed a news released (the news release) that disclosed for the first time the results of a preliminary assessment (now called a preliminary economic assessment) for its Border Coal Project in Saskatchewan.
¶ 3 The Border Coal Project is a property material to Goldsource and the results of the preliminary economic assessment constitutes a material change in relation to Goldsource.
¶ 4 On or about March 16, 2011, Goldsource filed a material change report dated February 28, 2011 (the MCR) referencing and summarizing the results of the February 28, 2011 news release.
¶ 5 The MCR and the news release are not in the required form because, for example, they disclose speculative coal resources that are contrary to subsections 2.2(a) and 2.3(1)(a) of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
¶ 6 Pursuant to subsections 4.2(1)(j)(ii) and 4.2(5) of NI 43-101, Goldsource was required to file a technical report, within 45 days of February 28, 2011, supporting its disclosure of the results of the preliminary economic assessment.
¶ 7 On or about March 15, 2011, Goldsource filed a technical report dated February 15, 2011 (the Report). The Report was not prepared in the required form because, for example, it discloses speculative coal resources that are not permitted under NI 43-101.
¶ 8 On or about April 20, 2011, Goldsource filed its annual information form dated April 15, 2011 (the AIF). The AIF is not in the required form because, for example, it discloses speculative coal resources that are not permitted under NI 43-101.
¶ 9 Goldsource also disclosed the speculative coal resources in several news releases including those dated March 17, 2011, July 11, 2011, and February 1, 2012. As at March 1, 2012, Goldsource discloses the speculative coal resources on its website and in documents linked to its website, including its June 2011 presentation and undated IR brochure.
¶ 10 Under section 164(1) of the Act, the Executive Director orders that all trading in the securities of Goldsource cease until:
1. it files:
(a) a new or amended technical report for the Border Coal Project, completed in accordance with the Act and regulations, supporting Goldsource’s disclosure of the results of the preliminary economic assessment,
(b) an amended news release and material change report, completed in accordance with the Act and regulations, retracting its previous disclosure of speculative coal resources, and
(c) an amended and restated annual information form, completed in accordance with the Act and regulations, collectively, (the required records), and
2. the Executive Director makes an order under section 164 of the Act revoking this order.
¶ 11 March 1, 2012
Robert T. Holland, P.Geo.
Chief Mining Advisor
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