Golconda Gold Ltd. releases financial and operating results for the first quarter of 2024

Golconda Gold Ltd

TORONTO, May 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 three-month period ending 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 the corresponding management discussion and analysis (the “MD&A”), are available on the Company profile at www.sedarplus.ca. All references to “$” in this press release refer to United States dollars.

Highlights of the first quarter of 2024 (“1st quarter of 2024”):

• extracted 13,492 tonnes of ore from its Galaxy and Princeton orebodies, with an average grade of 3.37 grams per tonne (g/t) compared to 11,644 tonnes at 2.94 g/t in the three months ending 31 December 2023 (“4th quarter of 2024”), an increase in contained gold of 33%;

• produced 1,095 tonnes of concentrate averaging 42.8 g/t containing 1,507 ounces of gold compared to 932 tonnes of 43.9 g/t containing 1,314 ounces of gold in Q4 2023, a 15% increase in gold production quarter by quarter;

• generated revenue of US$2.2 million from the sale of 1,099 payable ounces of gold at an operating cash cost of US$1,667(1) per payable ounce, compared to revenue of US$1.9 million in the fourth quarter 2023 at an operating cash cost of US$1,687 per payable ounce, representing a 16% increase in revenue; It is

• closed the previously announced metal purchase and sale agreement with Empress Royalty Holding Corp. (“Empress”), a wholly owned subsidiary of Empress Royalty Corp., under which the Company received an advance cash payment of US$5 million for payable gold produced at the Galaxy mine. These funds are being invested in additional new mining equipment, the renewal of existing mining equipment, and working capital to accelerate underground development to access a second level in the Galaxy in order to allow for an increase in mining volumes to utilize the significant idle capacity in the processing plant.(2 )

Golconda Gold CEO Nick Brodie commented: “Q1 2024 saw mining volumes and gold production increase relative to Q4 2023. With the receipt of funds received from the closure of Empress Investment, we should see production will continue to increase gradually over the next 12 months.(2)

After the end of the quarter, we received a new drilling rig, loader and dump truck, with additional equipment scheduled to arrive in late Q2 2024 and early Q3 2024.(2) Work also progressed well in the renovation of our existing buildings. mining fleet to improve equipment availability and further develop the Galaxy and Princeton ore bodies to increase production. After the end of the quarter, we delivered our first ore to the Princeton Top plant, a pre-developed mining area that we expect to provide immediate ounces of production.”(2)

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About Golconda Gold

Golconda Gold is an unhedged 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 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 and is focused on the safety of its employees, respecting the environment and contributing to the communities in which it operates.

Grades:

(1) Cash cost is a non-GAAP measure. Please refer to the table below and the “Supplementary Information to Management’s Discussion and Analysis” in the Performance Analysis Report for reconciliation with the measures reported in the Company’s interim financial statements.

(2) This is forward-looking information and is based on a number of assumptions. See “Warning Notes”.

Warning 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, without limitation, statements regarding the Company’s ability to accelerate underground development to access a second level in the Galaxy to enable an increase in mining volumes to utilize capacity significant idle capacity at the processing plant, the company’s expectation that production will gradually increase over the next 12 months, the company’s expectation that it will receive additional equipment in late second quarter 2024 and early third quarter 2024, the the Company’s expectation that Princeton Top will provide immediate cumulative production ounces, and the Company’s future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe,” “expect,” “aim,” “intend,” “plan,” “continue,” “will,” “may,” “would,” “anticipate,” “estimate,” “ predict”, “anticipate”, “project”, “seek”, “should” or similar or negative expressions thereof are forward-looking statements. These statements are not historical facts, but merely represent the Company’s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or anticipated in such forward-looking statements.

Additional factors that could cause actual results, performance or achievements to be materially different include, but are not limited to: the Company’s dependence on two mineral projects; gold price volatility; risks associated with conducting the Company’s mining activities in South Africa and New Mexico; regulatory, consent or permitting delays; risks related to the Company’s exploration, development and mining activities located in South Africa and New Mexico; risks related to trust in the Company’s management team and external service providers; risks relating to mineral resources and reserves; the Company’s inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks relating to the inability to generate sufficient cash flow from operations; risks related to project financing and capital issuances; risks arising from the Company’s fair value estimates in relation to the carrying value of mineral interests; mining tax regimes; risks arising from holding derivative instruments; the Company’s need to replace reserves depleted by production; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; disputes over property titles, especially titles to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and deal with the implications of COVID-19; the economic and financial implications of COVID-19 for the Company; operational or technical difficulties related to mining or development activities; lack of infrastructure; labor relations, labor unrest or unavailability; health risks in Africa; the Company’s interactions with neighboring communities and artisanal miners; the Company’s ability to successfully integrate acquired assets; risks related to the restart of production; the speculative nature of exploration and development, including the risks of diminishing quantities or levels of reserves; development of the Company’s exploration properties into commercially viable mines; stock market volatility; conflicts of interest between certain directors and officers; lack of liquidity for the Company’s shareholders; risks related to market perception of junior gold companies; and litigation risk. Management provides forward-looking statements because it believes they provide useful information to investors as they consider their investment objectives and cautions investors 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 statements or factors contained herein, and there can be no assurance that actual results or developments will be realized or, even if substantially realized, that will have the expected consequences or effects for the Company. These forward-looking statements are made as of the date of this press release and the Company undertakes no obligation to update or revise them to reflect subsequent information, events or 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 more information, please contact:
Nick Brodie
CEO, Golconda Gold Ltd.
+44 7905 089878
Nick.Brodie@golcondagold.com
www.golcondagold.com

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