Gold Springs Resource files Q1 2020 Financial Statements and MD&A
Gold Springs Resource files Q1 2020 Financial Statements and
MD&A
May 1 2, 2020, Vancouver, British Columbia — Gold Springs Resource Corp. (TSX:
GRC, OTCQB: GRCAF) (the “Company) , reports the release of its condensed interim
consolidated financial statements for the three months ended March 31, 2020 and the related
management’s discussion and analysis of financial position and results of operations (“MD&A”).
In this press release, all amounts are expressed in U.S. dollars, unless otherwise indicated.
As at March 31, 2020, the Company has a working c apital of $3.63 million, including $3.29
million in cash.
During the three months ended March 31, 2020, the Company reported a net loss of $0.36 million
($0.00 loss per share) compared with net earnings of $0.10 million ($0.00 earnings per share)
for the three months ended March 31, 2019. The primary driver in the change in results for the
three months ended March 31, 2020 compared to the same period of 2019 was the non-cash gain
of $0.40 million recorded in the 2019 period for changes in the fair value of the arbitration award
asset, Class B shares and other arbitration award liabilities.
During the quarter, t he Company continued to manage and maintain its costs structure which
resulted in general and administrative expenses (excluding non-cash share-based payments) of
$0.22 million for the three months ended March 31, 2020 compared to $0.25 million for the same
period in 2019.
Exploration spending during the three months ended March 31, 2020 was $0.20 million,
comprising expenditures incurred solely for Gold Springs. Principal activities revolved around
target development, including rock-chip surface sampling of new and existing drill target areas,
as well as structural and geological mapping of those areas. The Company also made the project
ready for the re-start of drilling later this year.
The Company has deferred certain activities of its 2020 exploration plan, including the 2020 drill
program, due to the social and economic disruption caused by the COVID 19 outbreak and its
impact on our industry and capital markets. The Company continues to monitor this situation
and will assess its decision in the future, in light of the market conditions at that time. For the
time being, the Company decided it will be updating its resource estimate for the Gold Springs
project during Q2 2020, to include the results of the 2017 and 2019 drill programs, which are not
yet included.
Outlook
The Company’s focus for 2020 is on the exploration and expansion of the mineral resources at its
Gold Springs project in Nevada and Utah, USA.
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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 inc lude words such as “creating”, “view of”,
“intended”, “plan”, “believe”, “vision”, “would”, “continue”, “will”, “estimate”, “promising”, and
similar expressions. These forward -looking statements are based on current expectations and
entail various risks and uncertainties. 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 qualified 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 indu stry more fully 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; execution 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.