Gold Springs Resource files Q2 2020 Financial Statements and MD&A
Gold Springs Resource files Q2 2020 Financial Statements and
MD&A
August 13, 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 and six months ended June 30, 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. doll ars, unless otherwise
indicated.
As at June 30, 2020, the Company has a working capital of $3.27 million, including $2.84 million
in cash.
During the six months ended June 30, 2020, the Company reported a net loss of $0. 59 million
($0.00 loss per share) compared with a net loss of $11.32 million ($0.05 loss per share) for the
six months ended June 30, 2019. During the three months ended June 30, 2020, the Company
reported a net loss of $0.23 million ($0.00 loss per share) compared with a loss of $11.42 million
($0.05 loss per share) for the three months ended June 30, 2019.
The primary drivers for the change in results for each of the three and six month periods ended
June 30, 2020 compared to the same periods of 2019 were the non-cash gain of $0.76 million and
$1.17 million, respectively, recorded in the 2019 period for changes in the fair value of the
arbitration award asset, Class B shares and other arbitration award liabilities and the non-cash
loss of $11.39 million, in each period, arising from the write down of the Escalones project upon
its reclassification as an asset held for sale.
During the period, 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
$0.41 million for the six months ended June 30, 2020 compared to $0.87 million for the same
period in 2019, and $0.19 million for the three months ended June 30, 2020 compared to $0.63
million for the same period in 2019.
Exploration spending during the six months ended June 30, 2020 was $0.41 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,
structural and geological mapping of those areas as well as updating the PEA and 2020 resource
estimate. The Company also made the project ready for the re-start of drilling later this year.
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 include words such as “creating”, “believe”,
“would”, “con tinue”, “will”, “promising”, “should”, 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 industry more fully described
in the Company’s Annual Information Form and continuous disclosure docum ents, 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 result s; 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.