Gold Springs Resource Corp. Files Q1 2025 Financial Statements, MD&A and Provides Operations Update

Rhea-AI Summary

Gold Springs Resource Corp. (GRCAF) has released its Q1 2025 financial results and operations update. The company reported a net loss of $0.17 million compared to $0.16 million in Q1 2024. General and administrative expenses decreased to $0.14 million from $0.15 million year-over-year, while exploration spending increased to $0.09 million from $0.07 million. The company's cash position stood at $0.02 million as of March 31, 2025. Operationally, Gold Springs has engaged consultants to apply for permits to construct a heap-leach processing pilot plant and starter pit at the South Jumbo area in Utah, where a resource estimate indicates 214,565 oz M&I Au. The company also plans to complete a water well near the processing facility to support large-scale operations.

Positive

• Plans to build heap-leach processing pilot plant and starter pit in Utah
• Confirmed resource estimate of 214,565 oz M&I Au at South Jumbo area
• Reduction in general and administrative expenses
• Increased exploration spending showing commitment to growth

Negative

• Net loss increased to $0.17 million in Q1 2025
• Very low cash position of only $0.02 million
• Higher foreign exchange losses impacting financial results

Vancouver, British Columbia--(Newsfile Corp. - May 13, 2025) - Gold Springs Resource Corp. (TSX: GRC) (OTCQB: GRCAF) (the "Company"), reports the release of its unaudited consolidated financial statements for the three months ended March 31, 2025 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.

During the three months ended March 31, 2025, general and administrative expenses, excluding non-cash share-based payments, decreased to $0.14 million compared with $0.15 million during the three months ended March 31, 2024. Exploration spending during the three months ended March 31, 2025, increased to $0.09 million, from $0.07 million incurred during the same period of 2024. During the three months ending March 31, 2025, the Company reported a net loss of $0.17 million ($nil loss per share) compared with net loss of $0.16 million ($nil loss per share), primarily resulting from an increase in foreign exchange losses. As of March 31, 2025, the Company had cash of $0.02 million.

Operations Update

The Company is pleased to announce that it has engaged ADT Environmental & Mineral Consultants and Global Resource Engineering to apply for permits to build a heap-leach processing pilot plant on private land and a starter pit at the South Jumbo area in Utah, where a resource estimate of 214,565 oz M&I Au has been identified*.

In addition, the Company plans to complete a water well near the processing facility, which will have the capacity to supply water for a large-scale operation.

* Please refer to the technical report: "Mineral Resource Estimate NI 43-101 Technical Report - Gold Springs Project - Utah-Nevada, USA" dated July 11, 2022 for additional information (Measured: 114,558 oz Au (6,456,000 tonnes with a grade of 0.55 gpt) - Indicated: 100,007 oz Au (5,657,000 tonnes with a grade of 0.55 gpt - M&I: 214,565 oz AU (12,115,000 tonnes with a grade of 0.55 gpt)).

About Gold Springs Resource Corp.

Gold Springs Resource Corp. (TSX: GRC) (OTCQB: GRCAF) is focused on the exploration and expansion of the gold and silver resources of its large Gold Springs project located on the border of Nevada and Utah, USA. The project is situated in the prolific Great Basin of Western USA, one of the best mining jurisdictions in the world.

Qualified Person

Randall Moore, Executive Vice-President Exploration, Gold Springs Resource Corp., is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects. He has approved the scientific or technical information in this release.

Gold Springs Resource Corp. Contact:

Antonio Canton, President and CEO
acanton@goldspringsresource.com

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 herein may include words such as "creating", "believe", "would", "continue", "will", "promising", "should", and similar expressions and includes the statement relating to the construction of a processing plant and starter pit at South Jumbo, the South Jumbo mineral resource estimate and the completion of a water well that will have the capacity to supply a large-scale operation. 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 documents, which are available on SEDAR+ at www.sedarplus.ca. 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252010

FAQ

What is GRCAF's Q1 2025 financial performance?

GRCAF reported a net loss of $0.17 million in Q1 2025, slightly higher than the $0.16 million loss in Q1 2024, with G&A expenses of $0.14 million and exploration spending of $0.09 million.

How much gold resource does Gold Springs have at the South Jumbo area?

The South Jumbo area has a Measured & Indicated resource estimate of 214,565 oz Au, with a grade of 0.55 gpt across 12,115,000 tonnes.

What is Gold Springs' current cash position as of Q1 2025?

The company reported a cash position of $0.02 million as of March 31, 2025.

What are GRCAF's development plans for its Utah project?

GRCAF is seeking permits to build a heap-leach processing pilot plant and starter pit at South Jumbo, Utah, and plans to complete a water well to support large-scale operations.

How did GRCAF's exploration spending change in Q1 2025?

Exploration spending increased to $0.09 million in Q1 2025, up from $0.07 million in Q1 2024.