Golden Goose Resources Inc. (TSX-V: GGR) is pleased to report its results for the second quarter and six months ended June 30, 2008.
- Measured and indicated resources of 2,038,000 tonnes grading 1.06% Ni, 0.55% Cu, 0.07% Co, 1.03 g/t Pd and 0.23 g/t Pt at Lac Levac
- An additional 717,227 ounces of gold at the Magino
- Net loss of $364,858 or $0.01 per share. down from $477,442 or $0.02 per share last year
Q2 Exploration Highlights
During the second quarter of 2008, Golden Goose filed two 43-101 resource estimates, one for each of the two properties on which it is currently conducting exploration. On May 7, 2008, the Company reported that measured and indicated resources at its Lac Levac (nickel-copper-PGM) property in Quebec are now estimated at 2,038,000 tonnes grading 1.06% Ni, 0.55% Cu, 0.07% Co, 1.03 g/t Pd and 0.23 g/t Pt, with an additional 1,053,000 tonnes in the inferred category grading 0.81% Ni, 0.32% Cu, 0.06% Co, 1.06 g/t Pd and 0.50 g/t Pt. On May 29, 2008, the Company released the resource estimate for the Magino Mine property in Ontario, which shows an inferred resource of 717,227 ounces of gold in resources grading an average of 5.94 g/t from the 200-metre level to a depth of 600 metres. This resource is is based solely on drilling carried on the property since early 2006, and is in addition to the resource of 544,080 ounces between surface and 200 metres reported by Snowdon in 2004.
Q2 Financial Results
For the second quarter ended June 30, 2008, the Company reported a net loss of $364,858 ($0.01 per share) compared with a net loss of $477,442 ($0.02 per share) for the same quarter of 2007. The lower net loss is mainly attributable to a reduction in stock-based compensation from $392,825 in 2007 to $27,442 this year due to the fair value of options granted in the second quarter of 2007. General and administrative expenses amounted to $349,328, relatively unchanged from $341,898 last year. Interest revenue declined from $40,449 in the second quarter of 2007 to $23,196 this year due to a lower short-term investment in the quarter of 2008.
For the six months ended June 30, 2008, the Company reported a net income of $536,507 compared to a net loss of $687,187 in 2007. The net income for the period is mainly attributable to an income tax recovery of $1,285,387 resulting from the renunciation by the Company of tax deductions totalling $4,532,083 resulting from the issuance of flow-through shares in 2006 and 2007, in favour of investors. The Company recorded a future income tax liability of $1,285,387 and reduced capital stock accordingly. This future income tax liability has allowed the Company to reduce the valuation allowance on tax pools related to mining properties by a corresponding amount of $1,285,387, thereby offsetting the future income tax liability. The reduction in the valuation allowance has been recorded in the statement of operations, comprehensive loss and deficit.
The loss before income taxes for the six-month period amounted to $748,880, down from $917,877 last year due to the reduction of stock-based compensation from $445,075 last year to $239,379 this year. Interest revenue for the period amounted to $65,019, similar to 2007.
Liquidity and Capital Resources
As at June 30, 2008, total assets were $16,089,786 compared to $17,062,365 as at December 31, 2007. Total cash available, composed of cash and cash equivalents and short-term investments, totalled $2,146,195 at the end of the quarter compared to $4,283,217 at the last year-end. Total cash available declined due to cash used in operating and investing activities during the period.
Liquid assets available at June 30, 2008 were more than sufficient to cover the 2008 budget for exploration activities and general and administrative expenses. -- www.cnxmarketlink.com
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