Gold Springs Resource Corp. files 2020 Financial Statements, MD&A and Annual Information Form
Gold Springs Resource Corp. files 2020 Financial Statements,
MD&A and Annual Information Form
March 26, 2021, Vancouver, British Columbia— Gold Springs Resource Corp. (TSX:
GRC, OTCQB: GRCAF) (the “Company”), reports the release of its audited consolidated financial
statements for the year ended December 31 , 2020, the related management’s discussion and
analysis of financial position and results of operations (“MD&A”) and the annual information
form (“AIF”). In this p ress release, all amounts are expressed in U.S. dollars, unless otherwise
indicated.
As at December 31, 20 20, the Company had a working capital of $ 1.87 million including $ 1.60
million in cash.
During 2020, general and administrative expenses , excluding non-cash share-based payments,
decreased to $0.97 million from $1.26 million during the year ended December 31, 2019.
Exploration spending during the year ended December 31, 2020, increased to $1.30 million from
$0.79 million incurred in the year ended December 31, 2019. Principal activities conducted at the
Gold Springs project during 2020 revolved around t he development of new and existing drill
target areas, including extensive rock-chip surface sampling , a geophysical (“CSAMT”) survey ,
and structural and geological mapping. During 2020, the Company also made the project ready
for the restart of drilling by building drill pads and roads to be used in the 2021 drill program and
by completing an archaeological survey required to secure drill-permits. In addition, in 2020 the
Company updated the NI 43 -101 mineral resource estimate (“the 2020 Resource”) and
preliminary economic assessment (“2020 PEA”) on the Gold Springs project (refer to News
Release of June 19, 2020).
The 2021 drill-program started on March 8, 2021 (refer to News Release of March 8, 2021) and
includes 10,000 metres of reverse -circulation drilling which is approximately ¼ of the total
number of meters drilled at the Gold Springs project to date.
The Company reported a net loss of $ 1.35 million ($0.0 1 loss per share) for the year ended
December 31, 2020, compared with a net loss of $11.80 million ($0.05 loss per share) for the year
ended December 31, 201 9. In 2020 the Company recognized a non -cash loss of $0.44 million
(2019 - $0.10 million) for its equity investment in World Copper Ltd. (WCU:TSXV). In 2019 the
Company incurred a non-cash write -down loss of $13.47 million related to the sale of the
Escalones property which more than offset income in 2019 of $3.31 million from the change in
fair value of arbitration award assets and liabilities and Class B shares resulting from the 2019
settlement of the arbitration with Bolivia.
Outlook
The Company’s focus is on the exploration and expansion of the mineral resources at its Gold
Springs project in Nevada and Utah, USA.
About Gold Springs Resource Corp.
Gold Springs Resource Corp. (TSX: GRC and OTCQB: GRCAF) is a growth -focused gold
exploration company creating value through the exploration and development of the Gold Springs
project in Nevada and Utah, U.S.A. Management has extensive experience in global exploration
and the mining industry.
Gold Springs Resource Corp. Contact:
Matias Herrero
Chief Executive Officer
+1 (778) 801-1667
Forward Looking Statements
Certain statements contained herein constitute “forward-looking information” under applicable
Canadian securities laws (“forward -looking statements”). Forward -looking statements look
into the future and provide an opinion as to the effect of certain events and trends on the
business. Forward-looking statements may include words such as “believe”, “continue”, “will”,
“should”, and similar expressions. These forward -looking statements are based on current
expectations and entail various risks and uncertainti es. Actual results may materially differ
from expectations if known and unknown risks or uncertainties affect our business or if our
estimates or assumptions prove inaccurate. Factors that could cause results or events to differ
materially from current expectations expressed or implied by the forward -looking statements,
include, but are not limited to, risks of the mineral exploration industry which may affect the
advancement of the Gold Springs project, including possible variations in mineral resources,
grade, recovery rates, metal prices, capital and operating costs, and the application of taxes;
availability of sufficient financing to fund planned or further required work in a timely manner
and on acceptable terms; availability of equipment and qualifie d personnel, failure of
equipment or processes to operate as anticipated, changes in project parameters, including
water requirements for operations, as plans continue to be refined; regulatory, environmental
and other risks of the mining industry more ful ly described in the Company’s Annual
Information Form and continuous disclosure documents, which are available on SEDAR
at www.sedar.com. The assumptions made in developing the forward -looking statements
include: the accuracy of current resource estimates and the interpretation of drill, metallurgical
testing and other exploration results; the continuing support for mining by local governments
in Nevada and Utah; the availability of equipment and qualified personnel to advance the Gold
Springs project; ex ecution of the Company’s existing plans and further exploration and
development programs for Gold Springs, which may change due to changes in the views of the
Company or if new information arises which makes it prudent to change such plans or
programs.
Readers are cautioned not to place undue reliance on the forward-looking statements contained
in this press release. Except as required by law, the Company assumes no obligation to update
or revise any forward-looking statement, whether as a result of new information, future events
or any other reason. Unless otherwise indicated, forward -looking statements in this press
release describe the Company’s expectations as of the date hereof.