TORONTO, May 29, 2024 (GLOBE NEWSWIRE) — Golconda Gold Ltd. (“Golconda Money” or “company) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce its financial results for the three months ended March 31, 2024.
A copy of the unaudited condensed consolidated interim financial statements for the three months ended March 31, 2024, prepared in accordance with International Financial Reporting Standards, and corresponding management's discussion and analysis (“business administration( ) is available on our profile at www.sedarplus.ca All “$”s in this press release are in United States dollars.
Highlights for the first quarter of 2024 (“Q1 2024”):
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The Galaxy and Princeton ore bodies produced 13,492 tonnes of ore at an average grade of 3.37 grams per tonne (g/t). For the three months to 31 December 2023, 11,644 tonnes were produced at an average grade of 2.94 g/t.Q4 2024) has increased the amount of gold contained by 33%.
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It produced 1,095 tonnes of concentrate containing 1,507 ounces of gold at an average grade of 42.8 g/t, compared with 932 tonnes containing 1,314 ounces of gold in the fourth quarter of 2023, an increase of 15% sequentially.
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It generated revenue of $2.2 million from the sale of 1,099 ounces of gold and had operating cash costs of $1,667.(1) Revenues increased 16% compared to fourth-quarter 2023 revenues of $1.9 million, with operating cash costs of $1,687 per payable ounce.
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The Company announced that it has acquired Empress Royalty Holding Corp. (“EmpressThe Company has entered into an agreement with Galaxy Gold Group, a wholly owned subsidiary of Empress Royalty Corp., to receive an upfront payment of $5 million for gold produced at the Galaxy mine. The funds will be invested in additional new mining equipment, refurbishment of existing mining equipment and working capital to accelerate underground development to access Galaxy's second level and increase mining volumes and utilize significant excess capacity at the processing plant.(2)
Nick Brody, CEO of Golconda Gold, commented: “Mine volumes and gold production increased in the first quarter of 2024 compared to the fourth quarter of 2023. With receipt of proceeds received from the closing of Empress Investments, production should continue to increase gradually over the next 12 months.”(2)
One new drilling rig, one loader and one dump truck will be delivered at the end of the quarter, with additional equipment expected to arrive late in Q2/2024 and early Q3/2024.(2) “Work to upgrade our existing mining fleet is also progressing well, improving equipment availability and enabling us to further develop our Galaxy and Princeton deposits to increase production. At the end of the quarter, we delivered the first ore from our developed mining area, Princeton Top, to the mill, which is expected to immediately provide an incremental production boost.”(2)
About Golconda Gold
Golconda Gold is an unhedged gold producer and exploration company with mining operations and exploration claims in South Africa and New Mexico. Golconda Gold is a public company and its shares are listed on the TSX Venture Exchange under the symbol “GG” and on the OTCQB under the symbol “GGGOF.” Golconda Gold's management team is comprised of senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programs. Golconda Gold is committed to operating to world-class standards, with a focus on employee safety, respect for the environment and contributing to the communities in which it operates.
Note:
(1) Cash costs are a non-GAAP measure. See the table below and “Supplemental Management's Discussion and Analysis” in MD&A for a reconciliation to measures reported in the Company's interim financial statements.
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Q1 2024 |
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Operational costs |
2,013,426 |
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Adjustments are made to: |
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Impairment, depreciation and depletion |
(169,622 |
) |
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Inventory Movement |
178,590 |
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Total operating cash costs |
2,022,394 |
|
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royalty |
(9,848 |
) |
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Total operating cash costs excluding royalties |
2,012,546 |
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Gold Production (Ounce) |
1,507 |
|
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Gold Production (Payable Ounces) |
1,207 |
|
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Total operating cash costs excluding royalties per available ounce |
1,667 |
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(2) This is forward-looking information and is based on certain assumptions. See Cautionary Statement.
Notes
Certain statements contained in this press release constitute “forward-looking statements.” All statements other than statements of historical fact contained in this press release, including statements regarding our ability to access Galaxy's second level to accelerate underground development and increase mining volumes to utilize significant excess capacity at our processing plant, our expectations that production will increase incrementally over the next 12 months, our expectations that we will receive additional equipment in late Q2 2024 and early Q3 2024, our expectations that Princeton Top will provide immediate production accretion, our future financial condition and performance, our strategy, proposed acquisitions, plans, objectives, goals and targets, and statements preceded by, followed by or including words such as “believe,” “expect,” “aim,” “intend,” “plan,” “continue,” “will,” “may,” “would,” “anticipate,” “estimate,” “predict,” “project,” “seek,” “should” or similar expressions or the negative of such words, are forward-looking statements. These statements are not historical facts and represent only our expectations, estimates and projections of future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Accordingly, actual results may differ materially from those expressed, implied or projected in such forward-looking statements.
Other factors that may cause actual results, performance or achievements to differ materially include, but are not limited to, the Company's reliance on its two mineral projects, fluctuations in gold prices, risks associated with the conduct of its mining activities in South Africa and New Mexico, regulatory, consent or permit delays, risks associated with its exploration, development and mining activities in South Africa and New Mexico, risks associated with the Company's reliance on its management and outside contractors, risks related to mineral resources and reserves, the Company's inability to obtain insurance covering all risks on a commercially reasonable basis or at all, currency fluctuations, risks related to the inability to generate sufficient cash flows from operations, risks related to project financing and equity issuances, risks arising from the Company's fair value estimates of the carrying value of its mineral interests, mining tax regimes, risks arising from holding derivative instruments and the Company's need to replenish reserves depleted by production. These risks and unknowns include risks and uncertainties inherent in all mining projects (including inaccuracies in reserves or resources, metallurgical recoveries and a project's capital and operating costs), ownership of assets, disputes over ownership of undeveloped assets in particular, laws and regulations governing the environment, health and safety, the Company's ability to manage and address the effects of COVID-19 in the communities in which it operates, the economic and financial impacts of COVID-19 on the Company, operational or technical issues relating to mining or development activities, lack of infrastructure, employee relations, labor disputes or labor shortages, health risks in Africa, the Company's engagement with surrounding communities and artisanal miners, the Company's ability to successfully integrate acquired assets, risks associated with resuming production, the speculative nature of exploration and development including the risk of reductions in reserves or grades, developing the Company's exploration assets into commercially viable mines, stock market volatility, conflicts of interest among certain of its directors and officers, lack of liquidity for the Company's shareholders, risks associated with market perception of junior gold companies and litigation risks. Management provides forward-looking statements because it believes they will provide useful information to investors when considering their investment objectives, and investors are cautioned not to place undue reliance on forward-looking information. Accordingly, all forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary or factors contained in this press release, and there can be no assurance that actual results or developments will be realized or, even if substantially realized, will have the anticipated results or effects on the Company. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect subsequent information, events, circumstances or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Nick Brody
CEO of Golconda Gold
+44 7905 089878
Nick Brody@golcondagold.com
Golconda Gold
