Newlox Highlights 2020 Achievements
Vancouver, BC, January 7, 2020 – Newlox Gold Ventures Corp. (“Newlox” or the “Company”) (CSE: LUX | Frankfurt: NGO) is pleased to provide a review of the 2020 year and an outlook for growth in 2021.
Highlights of the year include:
- Established Gold Production at Processing Plant 1
- Completed an Oversubscribed Operational Private Placement in June 2020
- Accelerated Expansion Plans at Fully-Permitted Boston 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 90% gold recovery during lab tests using proprietary Organic Aqua Regia (OAR) non-toxic gold leaching technology
- Overcame COVID-19 Related Closures to Restart Gold Production at Processing Plant One
- Significantly Upgraded Plant Infrastructure to Support Growth
- Implemented Successful Market Awareness Campaign
- Joined CSE Composite Index
- Completed $4 Million Financing for 2021
The Company began the year with a recently updated processing plant actively recovering gold and silver. The ramp-up of plant operations began in the spring of 2020 with the goal of achieving full scale operation during the year.
To support the ramp-up at Plant 1, Newlox Gold closed an oversubscribed private placement in June 2020. Gross proceeds of $557,500.00 was raised by issuing units at $0.05 per unit, the final round of five-cent financing. 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 financing to execute the production 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. 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.
Additionally, 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 1900’s.
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%. 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 over the first half of 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
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. Creation of the R&D Company corresponded with initiating a 12-month R&D program on Organic Aqua Regia (OAR) technology as a non-toxic 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 leaching of gold with an organic reagent, both non-toxic and widely used in other industries. Reagent cost is comparable to sodium cyanide, the conventional gold mining industry reagent. Notable advantages are that it is non-toxic, 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. Testing continues on the effect of both temperature and reagent concentration on the leaching mechanics.
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.
Newlox Gold initiated its first formal market awareness campaign in 2020, focusing on digital marketing. Management found that in spite of pandemic limited opportunities for in-person marketing at the traditional resource conferences, online conferencing provides an astounding return on investment and allows 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.
Going Forward 2021
Newlox Gold will complete ramp-up of gold production at Plant 1 in the second quarter of 2021. At full-scale this plant is projected to process 80 tonnes per day of tailings feedstock, to yield approximately 6,500 ounces of gold per year.
The Company plans to commission Plant 2, the Boston Project, in second quarter of 2021, and attain full scale operations before the end of 2021. The Boston Project at full scale will process 150 tonnes per day of feedstock, yielding 20,000 ounces of gold per year.
The Newlox technical team is also evaluating an enticing pipeline of potential expansion project sand intends to announce the Company’s third project in Spring of 2021.
Management anticipates 2021 will be a milestone year for the Company defining Newlox Gold as a rapidly growing environmentally responsible gold producer.
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 themeaning 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.