C:CC - Contact Gold Reports Q3 2023 Financial and Operating Results
(TheNewswire)
Vancouver, BC - TheNewswire - November 29, 2023 - Contact Gold Corp. (the "Company" or "ContactGold")(TSXV:C ) ( OTC:CGOLF) is pleasedto announce its financial and operating results for the three- andnine-months ended September 30, 2023.
Contact Gold is focused on advancing the Green Springsoxide gold project ("Green Springs") and the Pony Creek goldproject ("Pony Creek"), both of which host extensive androbust Carlin Type gold systems.
Green Springs is located on Nevada’s Cortez Trend, 7km immediately east of the Gold Rock project operated by CalibreMining Corp. (TSX: CXB; OTCQX: CXBMF). Exploration at Green Springs isbeing funded through a partnership with a subsidiary of Centerra GoldInc. ("Centerra") pursuant to which, and only uponsatisfaction of the full funding commitment, Centerra has a right toacquire a 70% interest in Green Springs (the "CenterraFarm-out"). Drilling and exploration is directed and executedby Contact Gold using funds advanced by Centerra. Pony Creek islocated on the southern Carlin Trend and ties on to the southernboundary of the feasibility-stage South Railroad gold project operatedby Orla Mining Ltd. (TSX: OLA; NYSE: ORLA).
Recent developments:
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On November 24, 2023, the Company received the USD 175,000anniversary payment due in connection with Centerra’s continuedparticipation in the earn-in on the Green Springs oxide goldproject.
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Reported final drill results from the 2023 explorationprogram at Green Springs. Highlights of oxide gold ("Au")drill results from the 2023 program at Green Springs include:
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1.14 g/t Au over 27.43 metres, from a depth of 16.76metres, in drill hole X-Ray GS23-06 – oxide
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Including: 1.73 g/t Au over 10.67 metres – oxide
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1.97 g/t Au over 35.05 metres, from a depth of 16.76metres, in drill hole X-Ray GS23-07 – oxide
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Including: 5.06 g/t Au over 10.67 metres –oxide
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Including: 6.96 g/t Au over 4.57 metres –oxide
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1.90 g/t Au over 25.91 metres, from a depth of 89.92metres, in drill hole X-Ray GS23-10 – oxide
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Including: 2.50 g/t Au over 18.29 metres – oxide
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1.41 g/t Au over 12.19 metres, from a depth of 85.34metres, in drill hole X-Ray GS23-11 – oxide
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Including: 2.45 g/t Au over 4.57 metres – oxide
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1.67 g/t Au over 10.67 metres, from a depth of 85.34metres, in drill hole X-Ray GS23-12 – oxide
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Including: 2.03 g/t Au over 7.62 metres – oxide
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0.86 g/t Au over 35.05 metres, from a depth of 77.72metres, in drill hole X-Ray GS23-13
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Including:1.22 g/t Au over 18.29 metres
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0.77 g/t Au over 19.81 metres, from a depth of 94.49metres, in drill hole Echo GS23-03 – oxide
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0.38 g/t Au over 39.62 metres, from a depth of 83.82metres, in drill hole Echo GS23-04 – oxide
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Received an approved Record of Decision from the U.S.Forest Service Humboldt-Toiyabe National Forest on the expanded Planof Operations at Green Springs that will allow Contact Gold to drilladditional high priority drill targets outside the boundary of theoriginal Plan of Operations.
Selected Q2 2023 financialdata
Details of financial results as at and for the three-and nine-months ended September 30, 2023 and 2022, are described inthe unaudited condensed interim consolidated financial statements andrelated notes thereto (the "Interim Financial Statements")as prepared in accordance with International Financial ReportingStandards ("IFRS"), and the MD&A for the correspondingperiods, copies of which are available on SEDAR at www.sedar.com .
The following selected financial data is derived fromthe Interim Financial Statements. Unless otherwise stated, theinformation herein, and in the tables below, is presented in Canadiandollars.
Losses attributable to shareholders for the nine-monthsended September 30, 2023 of $2.42 million (2022: $2.71 million),respectively, reflect primarily i) a write-down of the value of theRock Creek and Wilson Peak exploration properties of $1.60 million(2022: ); ii) costs incurred for professional, legal and advisoryfees, administration & office expenditures, wages and salaries,and investor relations activities (in aggregate, $0.88 million,compared to $1.38 million for the same period in 2022), and iii)exploration and evaluation of the Company’s exploration propertyinterests ($0.20 million, compared to $1.26 million for the sameperiod in 2022). The amount reported for exploration and evaluationexpenditures for the period is net of a recovery of cash ($2.16million) pursuant to the terms of the Centerra Farm-out, whereby thecash received from Centerra offsets the accounting for expendituresincurred.
Other comprehensive loss attributable to shareholdersfor the nine-month period ended September 30, 2023 of $0.39 million(2022: gain of $2.46 million) is primarily a reflection of the foreigncurrency impact arising on the carrying value of the Company’s U.S.entity which holds the exploration property portfolio, whereby a gainor loss reflects the relative value of the Canadian dollar (theCompany’s reporting currency) compared to the United States dollar(the currency in which the value of the exploration property portfoliois recorded).
Details of exploration and evaluation activitiesincurred and expensed by Contact Gold at Green Springs, includingnon-cash items for each respective period , are asfollows:
Summarized balances from the statements of financialposition of each period are as follows:
Total assets at September 30, 2023 comprise primarily:exploration and evaluation assets of $29.15 million, and $0.38 millionin cash. At December 31, 2022, total assets primarily compriseexploration and evaluation assets of $30.89 million, and $0.14 millionin cash.
Total liabilities at September 30, 2023 includenon-current liabilities of $0.15 million, recorded to recognize aprovision for site reclamation (December 31, 2022: $0.15 million),normal course payables and accruals of $0.32 million (December 31,2022: $0.64 million), settled after period end, and a short-term loanof $0.1 million (December 31, 2022: $0.10 million).
Accumulated other comprehensive loss of $0.27 millionat September 30, 2023 (December 31, 2022: $0.23 million) is theaggregate foreign currency impact on the translation to Canadiandollars of the value of the Company’s U.S. entity and its portfolioof exploration properties.
Net cash operating outflows for the nine-month periodended September 30, 2023, of $0.66 million (2022: $2.40 million)include exploration expenditures pursuant to the Centerra earn-in($1.96 million), net of a $2.16 million recovery from Centerra;marketing and investor relations activities ($0.10 million), generalcorporate activities ($0.89 million), and the settlement of balancesdue to related parties, service providers and vendors.
About Contact Gold Corp’s propertyinterests
Green Springs is strategically located 7 km immediatelyeast of the Gold Rock project operated by Calibre Mining Corp. (TSX:CXB; OTCQX: CXBMF) and 20 km southeast of their Pan Mine. The GreenSprings property is 23.2 km 2 , encompassing 3 shallow past-producing openpits and numerous targets that were not mined. The Company is operatorof Green Springs and will lead exploration under Centerra’s USD 10million earn-in. As of the date of this news release, the Companyand Centerra are working to finalize and approve the program andbudget for 2024 at Green Springs.
Strategically located immediately south of Orla MiningLtd.’s Railroad-Pinion Project, on the Southern Carlin Trend (TSX:OLA), Pony Creek totals 43.8 km 2 and is 100%owned by Contact Gold. The Company published a first-time mineralresource estimate at Pony Creek in early 2022, and looks forward toundertaking a resource expansion program at a future date.
Additional information about the Company is availableat www.contactgold.com .
For more information, please contact:
John Wenger, Chief Financial Officer
(604) 449-3361
Neither the TSXV nor its Regulation Services Provider(as that term is defined in the policies of the TSXV) acceptsresponsibility for the adequacy of this release. No stock exchange,securities commission or other regulatory authority has approved ordisapproved the information contained herein.
Cautionary Note RegardingForward-Looking Information
This news release contains"forward-looking information" and "forward-lookingstatements" (collectively, "forward-lookingstatements") within the meaning of the applicable Canadiansecurities legislation. All statements, other than statements ofhistorical fact, are forward-looking statements and are based onexpectations, estimates and projections as at the date of this newsrelease. Any statement that involves discussions with respect topredictions, expectations, beliefs, plans, projections, objectives,assumptions, future events or performance (often but not always usingphrases such as "expects", or "does not expect","is expected", "anticipates" or "does notanticipate", "plans", "budget","scheduled", "forecasts", "estimates","believes" or "intends" or variations of suchwords and phrases or stating that certain actions, events or results"may" or "could", "would","might" or "will" be taken to occur or beachieved) are not statements of historical fact and may beforward-looking statements. In this news release, forward-lookingstatements relate, among other things, to the anticipated explorationactivities of the Company at the Green Springs and Pony Creekproperties, the completion of the Centerra Farm-out, receipt ofapplicable regulatory approvals, planned expenditures through theremainder of the year, and the results of any exploration activitiesundertaken.
These forward-looking statements arebased on reasonable assumptions and estimates of management of theCompany at the time such statements were made. Actual future resultsmay differ materially as forward-looking statements involve known andunknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company tomaterially differ from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Such factors,among other things, include: fluctuations in general macroeconomicconditions; fluctuations in securities markets; fluctuations in spotand forward prices of gold, silver, base metals or certain othercommodities; fluctuations in currency markets (such as the Canadiandollar to United States dollar exchange rate); change in national andlocal government, legislation, taxation, controls, regulations andpolitical or economic developments; risks and hazards associated withthe business of mineral exploration, development and mining (includingenvironmental hazards, industrial accidents, unusual or unexpectedformations pressures, cave-ins and flooding); inability to obtainadequate insurance to cover risks and hazards; the presence of lawsand regulations that may impose restrictions on mining; employeerelations; relationships with and claims by local communities andindigenous populations; availability of increasing costs associatedwith mining inputs and labour; the speculative nature of mineralexploration and development (including the risks of obtainingnecessary licenses, permits and approvals from governmentauthorities); and title to properties. Although the forward-lookingstatements contained in this news release are based upon whatmanagement of the Company believes, or believed at the time, to bereasonable assumptions, the Company cannot assure shareholders thatactual results will be consistent with such forward-lookingstatements, as there may beother factors that cause results not to be as anticipated, estimatedor intended. Readers should not place undue reliance on theforward-looking statements and information contained in this newsrelease. The Company assumes no obligation to update theforward-looking statements of beliefs, opinions, projections, or otherfactors, should they change, except as required by law.
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