March 26, 2021, Vancouver, British Columbia— Gold Springs Resource Corp. (TSX:
GRC, OTCQB: GRCAF) (the “Company”), reports the release of its audited consolidated financial statements for the year ended December 31, 2020, the related management’s discussion and analysis of financial position and results of operations (“MD&A”) and the annual information form (“AIF”). In this press release, all amounts are expressed in U.S. dollars, unless otherwise indicated.
As at December 31, 2020, the Company had a working capital of $1.87 million including $1.60 million in cash.
During 2020, general and administrative expenses, excluding non-cash share-based payments, decreased to $0.97 million from $1.26 million during the year ended December 31, 2019.
Exploration spending during the year ended December 31, 2020, increased to $1.30 million from $0.79 million incurred in the year ended December 31, 2019. Principal activities conducted at the Gold Springs project during 2020 revolved around the development of new and existing drill target areas, including extensive rock-chip surface sampling, a geophysical (“CSAMT”) survey, and structural and geological mapping. During 2020, the Company also made the project ready for the restart of drilling by building drill pads and roads to be used in the 2021 drill program and by completing an archaeological survey required to secure drill-permits. In addition, in 2020 the Company updated the NI 43-101 mineral resource estimate (“the 2020 Resource”) and preliminary economic assessment (“2020 PEA”) on the Gold Springs project (refer to News Release of June 19, 2020).
The 2021 drill-program started on March 8, 2021 (refer to News Release of March 8, 2021) and includes 10,000 metres of reverse-circulation drilling which is approximately ¼ of the total number of meters drilled at the Gold Springs project to date.
The Company reported a net loss of $1.35 million ($0.01 loss per share) for the year ended December 31, 2020, compared with a net loss of $11.80 million ($0.05 loss per share) for the year ended December 31, 2019. In 2020 the Company recognized a non-cash loss of $0.44 million (2019 - $0.10 million) for its equity investment in World Copper Ltd. (WCU:TSXV). In 2019 the Company incurred a non-cash write-down loss of $13.47 million related to the sale of the
Escalones property which more than offset income in 2019 of $3.31 million from the change in fair value of arbitration award assets and liabilities and Class B shares resulting from the 2019 settlement of the arbitration with Bolivia.

Outlook
The Company’s focus is on the exploration and expansion of the mineral resources at its GoldSprings project in Nevada and Utah, USA.