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Golconda Gold Ltd V.GG

Alternate Symbol(s):  GGGOF

Golconda Gold Ltd. is a Canada-based un-hedged gold producer and explorer with mining operations and exploration tenements in South Africa and New Mexico. The Company operates through its wholly owned subsidiary, Galane Gold Mines Ltd., two assets: a producing gold mine which also has the rights to certain mineral exploration tenements (the mine and mineral exploration tenements collectively, the Galaxy Property) located in the Republic of South Africa (South Africa) through subsidiaries located in South Africa, and a gold and silver mine and processing infrastructure located in the United States of America (the Summit Property) that is in care and maintenance. The Galaxy gold is situated approximately eight kilometers (km) west of the town of Barberton and 45 km west of the provincial capital of Nelspruit in the Mpumalanga Province of South Africa. The property covers approximately 58.6 square kilometers (km2) is part of the prolific Barberton Greenstone Belt.


TSXV:GG - Post by User

Comment by Geodan2on Mar 25, 2022 11:51am
258 Views
Post# 34545701

RE:Seeking Alpha Report on GG very positive for long investors!

RE:Seeking Alpha Report on GG very positive for long investors!Agree on New Galane article,Here is my comment: I have a large position and have bot more in the .10s in last two days. What excites me is currently Galane is a 4 PE gold miner (trailing 12 months), but gold is much higher now and the Mupane Mine related debt (vast majority) is going away with its sale. At the same time the Galaxy ore body at the Galaxy Mine has just in Dec gone into production, and is much lower AISC. So profits will go way up at the same time that debt goes way down.

Debt is the main thing that is holding Galane back both stock wise and funding Summit wise. The main gem Galane owns is the Galaxy mine, millions of gold oz resources. Yet all this for just $38 million market Cap! In the future they can be making more than $38 million profit a year with Galaxy and Summit going, two low ASIC mines. The Galaxy mill which is quite new is way bigger than the current mining rate. Obviously they plan to grow Galaxy Mine production. As this mine cross section shows https://static.seekingalpha.com/uploads/2021/10/10/535947-16338709121900315_origin.png they have vein after vein there with tunnel access to all and are just mining one vein now. BTW that project just into production had a 1,000%+ IRR, the highest have ever seen.

Their neighboring mine has found that the deeper they go the higher the gold grade becomes. Galaxy has just been mined for decades on the easy upper parts of those veins. All the veins are open downward, and they are very wide veins. Galane may have 5 million oz of gold at Galaxy alone, it has not yet been drilled deeper. I suggest readers read Galane's newest presentation and watch video interviews they have done.

https://www.galanegold.com/_resources/presentations/corporate-presentation.pdf

https://vimeo.com/340191652?embedded=true&source=vimeo_logo&owner=392495

CRUX interview https://youtu.be/VaNdmuuZfLg Thanks again for the article. Will spread it around. Cheers
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