Golconda Gold Ltd. (GGGOF)

[geodan]

Nick got back to me.Their site is under attack is why down, provider working on it.

He sent me the March 2022 Presentation as a PDF

OVERVIEW OF THE GALAXY MINE
M&I Resources: 970,904 oz Au at average grade of 2.77 g/t Au
Inferred Resources: 1,409,764 oz Au at average grade of 2.62 g/t Au

So grade is way higher than projected grade in last report. He had hinted at this in Dec, that the ore was wider and higher grade than they expected in a video.

Katchum went through the TSX version of 10K, his video is worth watching, link again

. Bottom line is results are way better that PR official #s indicate.

Nick also said the Q1 report will be out this month.

Also in PDF:

Adjacent Mines:
Pan African Resources’ Barberton Gold Mine In fiscal 2019, produced 99,363 oz Au at a cash cost of US$927/oz Au Use an oxidization step JORC resource of 4.0 million oz Au at a grade of 4.19 g/t Au

So Galaxy grade similar to Barberton in Q4, it may be aberration but even if drops to 3.5 grams, way better than plan. And if not an aberration 4.0 / 2.7 = 48% more revenue per ton. All else equal profit would soar.

At $1,900 at $1,200 AISC = $700 profit. $1,900 Times 1.48 more gold = same as getting $2,812 an oz or $1,612 an oz or 2.3X or 130%more profit just due to grade. Say taxes eat 30% of the extra profit of $912 an oz (using this method) that would be $638 profit, a near double.

If these grades hold out it will be spectacular.

Will do it another way as sounds so good. Say the mine 15,000 oz in a year. If grade goes up on same tons 48% as Q4 showed, they would get 22,200 oz at same cost of production. If costs are $1200oz = at expected grade that is $700 X 15,000 = $10,500,000 profit and $18,000,000 costs.

At 22,200oz mined in same tonnage X $1900 =$41,800,000 revenue and $18,000,000 costs = $23,800,000 profit. Call it 30% taxes on extra $13,300,000 profit = $9,310,000 extra post tax profit.

So total profit = $19,810,000 At older expected grade post tax profit expected was $10,500,000 so profits go up 89% percent due to grade.

Both methods match. If this grade continues profits will be 89% higher than projections it seems, spectacular.