Golconda Gold Ltd. Releases Financial and Operating Results for 2023

TORONTO, April 29, 2024 (GLOBE NEWSWIRE) -- Golconda Gold Ltd. (“Golconda Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce the release of its financial results for the year ended December 31, 2023. All amounts are in United States dollars unless otherwise indicated.

A copy of the audited consolidated financial statements for the year ended December 31, 2023 prepared in accordance with International Financial Reporting Standards and the corresponding Management’s Discussion and Analysis will be available under the Company’s profile on www.sedarplus.ca.

2023 Highlights, explanation and subsequent events

• For the year ended December 31, 2023, the Company:
  • mined 63,386 tonnes of ore, from its Galaxy and Princeton ore bodies, with an average grade of 3.30 grammes per tonne (g/t) compared to 91,744 tonnes at 3.22 g/t in the year ended December 31, 2022;
    • mining operations were impacted due to flooding of the Princeton decline below 17 Level in the early part of 2023. In addition, at both Galaxy and Princeton mining was constrained by low equipment availabilities. In the last quarter of 2023, labour disruptions severely impacted production and all aspects of the operations;
    • preventative maintenance plans have been reviewed and enhanced and the existing mining equipment is in the process of being overhauled, aided with the stream financing received post year-end (see below), which is also being used to purchase new, additional equipment;
    • Galaxy’s labour structure was overhauled during the first quarter of 2024, with the mining, processing and maintenance subcontractors labour being transferred to Galaxy’s own payroll. This is expected to enable Galaxy to manage its total workforce more effectively and enforce a standardised set of disciplinary procedures⁽¹⁾;
  • produced 5,146 tonnes of concentrate at an average grade of 38.3 g/t containing 6,339 ounces of gold compared to 9,102 tonnes at 34.0 g/t containing 9,961 ounces of gold in the year ended December 31, 2022;
    • the operating plant has an upgraded capacity of 50,000 tonnes per month but has been constrained by mining production;
  • generated revenue of $9.4 million from the sale of 6,208 contained ounces (4,925 payable ounces) of gold at an operating cash cost of $1,596 per payable ounce compared to $13.2 million revenue for the year ended December 31, 2022 at an operating cash cost of $1,353 per payable ounce⁽²⁾; and
  • subsequent to the year-end completed and fully funded, a gold stream agreement for the sale of future gold production with Empress Royalty Holding Corp. (“Empress”) under which Empress provided $5 million to Galaxy Gold to facilitate an increase in mining volumes to utilise spare capacity in Galaxy’s new, larger milling circuit to increase gold production.⁽¹⁾