Vancouver, BC – TheNewswire - 6 August 2021 – Newlox Gold Ventures Corp. (“Newlox” or the “Company”) (CSE:LUX) | (Frankfurt/Stuttgart: NGO) | PINK (OTC:NWLXF) | (CNSX:LUX.CN) has filed its annual financial statements and is pleased to provide investors with an overview of the progress made in fiscal 2020. Although FY2020 was filled with unforeseen challenges to overcome, the Company made significant progress in operations, R&D, market development, and financing.
Highlights of the Year
- Established Gold Production at Processing Plant One
- Completed an Oversubscribed Private Placement in June of 2020
- Signed Agreements and Secured All Permits for the Boston Expansion Project
- Completed Historical Geological Review of both the Boston Project and Juntas Gold Camp
- Formalized Research & Development Program into Subsidiary Company; Newlox Research & Development Corp.
- Achieved Nearly 100% gold recovery during lab tests using proprietary Organic Aqua Regia (OAR) nontoxic gold leaching technology
- Overcame COVID-19 Related Closures to Restart Gold Production at Processing Plant One
- Significantly Upgraded Plant One Infrastructure to Support Growth
- Implemented Successful Market Awareness Campaign
- Joined CSE Composite Index
- Completed $4 Million Financing to Fully-Fund Ramp-Up of Productivity at Plant One and Construction of the Boston Expansion Project
- Welcomed Dr. Marcello Veiga as the Head of Research and Development
- Started Construction at the Boston Expansion Project
- Achieved 5.6x Share Price Appreciation
- Achieved 7.4x growth in Market Capitalization
Overcoming the COVID-19 & Establishing Commercial Operations
The Company began the year with a recently updated processing plant actively recovering gold and silver.
To support the ramp-up at Plant 1, Newlox Gold closed an oversubscribed private placement in June 2020 and raised gross proceeds of $557,500.00. These funds were allocated to operational capital for increased throughput at Plant 1.
Like many of its peers, Newlox Gold faced setbacks in 2020 from the global COVID-19 pandemic. Due to an alarming increase in COVID-19 infections, the Company temporarily suspended gold production in June of 2020, particularly frustrating following the successful financing designed to support the ramp-up program.
Newlox Gold was adaptable and decisive, allowing the Company to continue to make progress, despite the pandemic-related interruption. Working closely with local regulators, the Company took advantage of the unscheduled shutdown to execute a long-standing plan to move the first processing plant to a more favourable permanent location in line with the longer-term growth objective. A restart of limited operations at the first processing plant in the winter of 2020 benefited from the significantly upgraded facility.
The new, larger site facilitates future growth while accommodating both the Company’s enhanced laboratory and basecamp. The new location reduces transportation costs, enhances project logistics, facilitates production growth, and increases site security. Additionally, the new location is outside of the local municipal limits, in a less densely populated area, alleviating COVID-19 related concerns and enhancing personnel safety.
At the conclusion of the Company’s fiscal year, Newlox’s enhanced first processing plant had started to ramp-up processes with the intention of reaching full-scale plant operations later in the year.
Growth In Costa Rica – The Boston Project
Newlox Gold announced its second project in July of 2020. The Boston Project is within the Juntas Gold Camp of Costa Rica, which has been continuously mined since the early 1900s.
Newlox plans the Boston mill to process 150 tonnes per day of material grading +- 15 grams per tonne gold with an anticipated gold recovery of 90%. The feedstock is to be provided by Newlox’s artisanal partners. Profits will be split evenly between the parties.
Full-scale operation at Boston will follow engineering, development, construction, and commissioning in calendar 2021. Such an abbreviated timeline at the Boston Project is facilitated not only by the fully permitted status of the Project but also by Newlox’s considerable experience with the local community and by its in-house analytical capabilities
Advances In ESG-Gold Technology
Operational progress has been accompanied by the Company formalizing its research and development efforts into Newlox Research & Development Corp., an R&D-focused subsidiary of Newlox Gold. The creation of the R&D Company corresponded with initiating a 12-month R&D program on Organic Aqua Regia (OAR) technology as a nontoxic and water-free alternative to cyanidation for gold and precious metals recovery.
Newlox is developing OAR with both the University of British Columbia in Canada and Chiba University in Japan, focused on the leaching of gold with an organic reagent, both nontoxic and widely used in other industries. Reagent cost is comparable to sodium cyanide, the conventional gold mining industry reagent. Notable advantages are expected to be that it is nontoxic, is recyclable, extracts gold faster than cyanide, does not use water, and does not require carbon or electrowinning.
OAR testing by Newlox on high-grade gold ore samples returned gold recoveries above 90% under ambient temperature and pressure and nearly 100% at elevated temperatures.
Tremendous potential is envisaged for this new leaching methodology which could be a paradigm-shifting technology applicable not only to advance the US$180 billion formal global gold mining industry but also to bring the US$27 billion informal gold mining industry into the 21st century.
Market Awareness
Newlox Gold initiated its first formal market awareness campaign in 2020, focusing on digital marketing. Management found that despite pandemic limited opportunities for in-person marketing at the traditional resource conferences, online conferencing provides an astounding return on investment and allows the presentation of the Company to a broad audience.
The current bull market for resources and the rapid progress made in operations allows Newlox’s recently initiated market awareness program to be highly effective and has resulted in increased liquidity and share price appreciation. The Company was proud to be inducted to the CSE Composite Index in October of 2020 and has now seen share price appreciation of over 10x since the June 2020 private placement.
A Message from Ryan Jackson, President & CEO:
“Fiscal 2020, despite all of its challenges, was a profoundly progressive year for Newlox Gold. The Company made tremendous advances in all aspects of its business and started to become recognized in the markets.
The Company currently has four primary initiatives underway: productivity ramp-up at Plant One, construction at Boston (Plant Two), evaluation of new projects in Brazil, and research and development. Since the end of our fiscal year, we have continued to make headway in these initiatives and expect to provide updates to shareholders regularly.
In particular, we will be reporting on the Plant One ramp-up next week and are excited to provide details concerning gold recovery operations. We have been able to increase productivity month-over-month since the beginning of the year and have recently achieved new milestones in that regard.
We would like to thank our long-term and high-conviction shareholders for their support and are delighted to welcome an influx of new shareholders to Newlox Gold who have proven to understand and appreciate the Newlox Gold ESG-focused business model.”
Forward-Looking Information
The information in this news release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute forward-looking information. Forward-looking information includes, but is not limited to, the completion of the work programs currently underway and the results of these programs. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, achievements, or performance may vary materially from those anticipated and indicated by these forward-looking statements. The material risk factors that could cause actual results to differ include the risk that work undertaken by the Company may have unintended effects, the risk of delays in completing work, and the risk that the Company may not be able to raise sufficient funds and Force Majeure. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, it can give no assurances that the expectations of any forward-looking information will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise. Neither Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release).
Technical Disclaimer
The Company advises it is not basing any decision to produce on a feasibility study of reserves demonstrating the economic and technical viability of the project and also advises there is increased uncertainty and specific economic and technical risks of failure associated with any production decision. Stewart A. Jackson, Ph.D., P.Geo., a “Qualified Person” within the meaning of National Instrument 43-101, has prepared, supervised the preparation of, and approved the contents of this News Release.
On Behalf of the Board, Newlox Gold Ventures Corp.
Contact Newlox Gold
Ryan Jackson
Newlox Gold Ventures Corp., President
Website: www.newloxgold.com
Phone: +1 778 738 0546
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