Golconda Gold Ltd. Releases Financial and Operating Results for 2023 - Seite 2

Golconda Gold CEO, Nick Brodie commented: “We are very excited about unlocking the full potential of Galaxy utilising the recent Empress financing to procure new mining equipment (we have recently taken delivery of a new drill rig and loader, with a new dump truck and various items of ancillary equipment scheduled for delivery by the end of May 2024), refurbish existing equipment and provide working capital to accelerate our underground development to access a second Level at Galaxy⁽³⁾ which we expect to unlock the value in the current 1.0 million oz Measured and Indicated⁽⁴⁾ and 1.4 million oz Inferred Resource⁽⁵⁾ and the installed 50,000 tonnes per month processing plant that only ran at 11% capacity during 2023.

We continue to work on a non-dilutive financing for the restart of Summit, which aims to provide accretive production, including a significant silver component, and geographic diversification allowing us to capitalise on the current strong gold and silver price environment.”⁽²⁾⁽³⁾

About Golconda Gold

Golconda Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in South Africa and New Mexico. Golconda Gold is a public company and its shares are quoted on the TSX Venture Exchange (“TSXV”) under the symbol “GG” and 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 programmes. It is committed to operating at world-class standards, focused on the safety of its employees, respecting the environment, and contributing to the communities in which it operates.

Notes:

(1) This is forward-looking information and is based on a number of assumption. See “Cautionary Notes”.

(2) Cash cost is a non-GAAP measure. Refer to “Supplemental Information to the MD&A” for reconciliation to measure reported in the Company’s financial statements.

	FY 2023
Operating costs (US$)	9,016,919
Adjust for:
Depreciation and depletion	(790,912	)
Inventory movement	(115,664	)
Total operating cash cost	8,110,343
Royalties	(43,669	)
Total operating cash cost excluding royalties	8,066,674
Gold production (contained ozs)	6,339
Gold production (payable ozs)	5,053
Total operating cash cost excluding royalties per payable oz	1,596

(3) The deposits at the Galaxy mine are supported by a technical report entitled “NI 43-101 Technical Report on the Galaxy Gold Mine, South Africa” which was issued on July 3, 2020 (the “Galaxy Technical Report”), with an effective date of June 29, 2020, a copy of which is available under the Company’s profile on www.sedarplus.ca. The Galaxy Technical Report was prepared by Minxcon (Pty) Ltd and approved by Mr. Uwe Engelmann, BSc (Zoo. & Bot.), BSc Hons (Geol.) Pr.Sci.Nat., MGSSA, and Mr. Daniel (Daan) van Heerden, B Eng (Min.), MCom (Bus. Admin.), MMC, Pr.Eng., FSAIMM, AMMSA, both “qualified persons” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), and independent of the Company for the purposes of NI 43-101. The preliminary economic assessment (“PEA”) supported by the Galaxy Technical Report is preliminary in nature as the resources included in the PEA are comprised 54% of inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.