|April 08, 2005|
Energold Announces Record Yearly Earnings and Continued Expansion of Drill Fleet
|Energold Mining Ltd. (EGD:TSX.V) is extremely pleased to announce the consolidated results for the year ended December 31, 2004. The Company fully consolidates its 50% subsidiary Kluane International Drilling and its affiliates, and it's 32.9% subsidiary IMPACT Minerals International Inc. The Company earned $94,229 ($0.005 earnings per share) in the fourth quarter despite a foreign exchange expense for the quarter of $202,770. The year's earnings were $1,790,219 ($0.11 earnings per share, diluted $0.09) up from $559,157 ($0.04 earnings per share, diluted $0.03) in 2003. At the end of the year total consolidated assets were $16.2 Million ($9.0 Million-2003) and working capital was $7.1 Million ($1.8 Million-2003).|
The Kluane International Drilling Group completed another productive and profitable quarter leading to Energold posting its tenth consecutive profitable quarter. Gross drill revenues for the year were $15.40 Million on 121,791m drilled, up from $6.40 Million on 47,067m drilled in the comparable period.
Subsequent to the year end Energold completed a private placement for 2,400,000 units at $1.25 per unit. The funds are to be used for working capital purposes and the construction of additional drill rigs. The Company currently has 18 drill rigs and with the demand for contract drilling services expected to continue at a strong rate, the Company is currently building 2 more drill rigs with plans for additional rigs later in the year.
During the year the Company spent $823,492 in resource property costs, $323,723 related to IMPACT's Zacualpan project and wrote-off $588,457 in exploration expenditures. Additional exploration work was carried out by third parties on the Company's properties in the Dominican Republic, using Energold as it's principal contractor.
A conference call discussing the annual results has been scheduled for Wednesday April 13. Further details will follow. Energold Mining Ltd. is an environmentally and socially sensitive diamond drilling company that services the mining industry. Energold holds a controlling interest in silver oriented explorer IMPACT Minerals International Inc. and a project portfolio in the Dominican Republic.
On behalf of the Directors of Energold Mining Ltd.
"Frederick W. Davidson"
For further information, please contact:
Darrell Rader - Corporate Development
900 - 543 Granville St.
Vancouver, B.C. V6C 1X8
Telephone 604 681-9501
Facsimile 604 681-6813
The TSX Venture Exchange has neither approved nor disapproved this news release.
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