GoGold releases 2022 Q2 financials

Outstanding shares: 295,258,056
Trading symbols: TSX: GGD
OTCQX: GLGDF

HALIFAX, NS, May 11, 2022 /PRNewswire/ – GoGold Resources Inc. (TSX:GGD) (OTCQX:GLGDF) (“GoGold”, “the Company”) is pleased to report financial results for the second fiscal quarter of 2022 for the past three months March 31, 2022 where Parral generates $10.3 million of proceeds (all amounts are in US dollars) from the sale of 443,942 silver equivalent ounces.

“During the quarter we continued to focus on our Los Ricos project as we continue to advance our second 100,000 meter drill program,” he said Brad Langille, President and CEO. “Parral continues to produce for us and provides significant cash flow that contributes to Los Ricos’ general and administrative expenses and exploration budget. Cash flow generated at Parral increased by more than 1 million dollars beginning in the December quarter when we completed the transition between the project’s tailings zones.”

During the quarter, Parral generated free cash of $4.4 million before the working capital changes. Silver equivalent ounces sold increased 11% compared to the December quarter-end. Production is lower compared to last year as the project transitioned to another zone in the Tailings deposit which temporarily impacted pad kinetic leaching. Stacking of mineable ounces on the heap leach pad exceeded production by 18% resulting in a cash investment of $3.1 million associated with the increase in heap inventory. The Company is expected to benefit from production from these stacked ounces in the coming quarters.

Quarter-end highlights March 31, 2022:

• income from $10.3 million selling 443,942 silver equivalent ounces at a realized price per ounce of $23.28 per ounce
• cash from $83.3 million
• Production of 455,991 silver equivalent ounces consisting of 186,655 silver ounces, 2,791 gold ounces and 125 tonnes of copper
• Closed buy deal financing for net proceeds of $33.4 million on the sale of 16.1 million common shares at a price of $2.85 CAD per share

At Los Ricos, the Company drilled 21,052 meters on the projects in the past quarter March 31, 2022 compared to 22,045 meters at the end of the quarter March 312021. The company is capitalized $6.1 million on drilling, exploration and consulting projects for the past quarter March 31, 2022compared to $5.6 million last year. This included $4.0 million in Los Ricos North and $2.1 million in Los Ricos South. The Company is conducting a 100,000 meter drill program at Los Ricos North in 2022 with a focus on increasing ounces in the mineral resource estimates.

The following tables show summarized financial information and key performance indicators:

This press release should be read in conjunction with the Condensed Interim Consolidated Financial Statements for the past three and six months March 31, 2022Comments on the financial statements and management’s discussion and analysis for the past quarter March 31, 2022filed on SEDAR and available on the Company’s website.

The technical information in this press release relating to GoGold was prepared by Mr. bob harrisP.Eng., who is a Qualified Person as defined by NI 43-101.

About GoGold Resources

GoGold Resources (TSX: GGD) is a Canada-based silver and gold producer focused on the operation, development, exploration and acquisition of quality projects in Mexico. The Company operates the Parral Tailings mine in the United States State of Chihuahua and has the Los Ricos South and Los Ricos North exploration projects in the state Jalisco. headquarters in Halifax, N.S, GoGold is building a portfolio of low-cost, high-margin projects. Visit gogoldresources.com for more information.

CAUTION:

The securities described herein have not been and will not be registered under, and may not be offered or sold under, the United States Securities Act of 1933, as amended (the “US Securities Act”) or any other state securities laws The United States or to or for the benefit of any US person (as defined in Regulation S of the US Securities Act) except in accordance with, or exceptions to, the registration requirements of the US Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of GoGold The United States.

This press release may contain “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements contained in this press release, other than statements of historical fact, including but not limited to statements regarding the Parral tailings pile project, the Los Ricos project, future operating margins, future production and processing, and GoGold’s future plans and objectives forward-looking searches for information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions used in developing such information that may prove to be incorrect, including, but not limited to, assumptions related to GoGold and its subsidiaries’ going concern concerns, general economic and market conditions , mineral prices, the accuracy of mineral resource estimates and the performance of the Parral project. There can be no assurance that this information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information.

Important factors that could cause actual results to differ materially from GoGold’s expectations include exploration and development risks associated with GoGold’s projects, failure to determine estimated mineral resources or mineral reserves, volatility in commodity prices, Fluctuations in recovery rates and the impact of the global COVID-19 pandemic and global economic conditions. Additional information regarding the risk factors applicable to GoGold can be found in GoGold’s ongoing disclosure materials filed with securities regulators from time to time, including but not limited to GoGold’s annual information form. The forward-looking information contained in this press release is made as of the date of this press release.

Cautionary non-GAAP measures and additional GAAP measures

Note that for the purposes of this section, GAAP refers to IFRS. The Company believes investors use certain non-GAAP and supplemental GAAP measures as indicators in evaluating mining companies. They are intended to provide additional information and should not be viewed in isolation or as a substitute for performance measures prepared under GAAP. Non-GAAP and supplemental GAAP measures do not have a standardized meaning required by IFRS and therefore may not be comparable to similar measures used by other companies.

Additional GAAP measures presented on the front face of the Company’s consolidated statement of comprehensive income include “Income from Operations (Loss)”. These metrics are intended to provide an indication of the Company’s mine and operational performance. “Cash flow from operations before changes in non-cash working capital” is a non-GAAP performance measure that could provide an indication of the entity’s ability to generate cash flows from operations and is calculated by reflecting change in non-cash working capital Working capital is added to “Net cash used in operations” as presented in the Company’s consolidated statement of cash flows. Measures per ounce are calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed during the period. “Cash cost per ounce” and “all-in-sustaining cost per ounce,” as used in this analysis, are non-GAAP terms typically used by mining companies to describe the amount of cash available to the company Evaluate the standing gross margin by deducting this cost from the unit price realized in the period. These non-GAAP terms are also used to assess a mining company’s ability to generate cash flow from operations. There may be some variance in the method of calculating these metrics as determined by the Company compared to other mining companies. In this context, “cash cost per ounce” reflects cash operating costs allocated from in-process and do inventories associated with ounces of silver and gold sold during the period. “Cash cost per ounce” may vary from period to period due to operating efficiencies, material processed and silver/gold recoveries over the period. “All-in-sustaining cost per ounce” includes total cash costs, exploration, corporate and administrative expenses, stock-based compensation and sustained capital costs. For a reconciliation of non-GAAP and GAAP measures, see Management Discussion and Analysis dated February 8, 2022 for the past quarter December 31, 2021as presented on SEDAR.

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SOURCE GoGold Resources Inc.