Golconda Gold Ltd V.GG

great financials for 2020.

[onetimer]

• Positive operating cash flow of $13,877,756 and net earnings of $4,434,028 (2019 - $2,919,378 and a loss of $3,823,364).
• Mupane produced 27,369 ounces of gold at a head grade of 1.74 g/t and a recovery of 73.8% (2019 – 30,294 ounces at a head grade of 1.81 g/t and recovery of 71.2%). Production was constrained in the first half of 2020 due to the COVID-19 restrictions.
• Mupane’s average sales price achieved for 2020 was $1,766 per ounce (2019 - $1,378) offset by an operating cash cost (1) of $1,070 per ounce (2019 - $1,090).
• Galaxy produced 3,742 tonnes of concentrate containing 3,932 ounces of gold for gross sales proceeds, on payable ounces of 2,721, of $4,948,678.
• In 2020, Galane Gold made debt repayments of $4,824,898 (2019 - $3,442,292).
• The closing cash balance at December 31, 2020 was $4,971,880 (2019 - $2,201,853).
• A new technical report and preliminary economic assessment (the “PEA”) was produced for Galaxy that showed: (3)(4)
  • A sixty percent increase, 891,773 ounces, in all resource categories when compared to the previous technical report to give a new total of 970,904 ounces of measured and indicated mineral resources, and 1,409,764 ounces of inferred mineral resources.
  • New Preliminary Economic Assessment, modelled at an average gold price of $1,466 per ounce, with:
    • an initial 11 year mine plan;
    • producing 413,421 ounces;
    • at an all in sustainable cost of $747 per ounce; and
    • a peak funding requirement of approximately $600,000.
  • At a gold price of $1,700 per ounce and a 11-year life, the project has an internal rate of return of 1,498% and a NPV (5%) of $147 million. (5)