|May 27, 2005|
Energold Announces 11th Consecutive Profitable Quarter
|Energold Mining Ltd. (EGD:TSX.V) is pleased to announce the consolidated results for the quarter ended March 31, 2005. The Company fully consolidates its 50% subsidiary Kluane International Drilling and its affiliates, and it's 32% subsidiary IMPACT Minerals International Inc. The Company earned $239,040 ($0.01 earnings per share) in the first quarter. At the end of the quarter total consolidated assets were $20 Million, working capital was $12.5 Million, and cash was $7.2 Million. |
Contract drilling activities were generally slower in the first quarter of 2005 as compared to last year. Gross drill revenues for the quarter of $2.5 Million on 20,682m drilled, down from $3.40 Million on 26,500m drilled in the comparable period. The slow down in January and February related in large part to permitting issues in Peru. While frustrating, this simply reflects the increasing demand for a light impact on the environment as well as the addressing of social issues in exploration. The second quarter, with the exception of Peru, appears to be extremely active and new contracts and request for tenders suggest that the balance of 2005 should remain extremely busy. The company currently has 19 drill rigs.
Over the next few months, the Company will expand its physical and administrative infrastructure to catch up with the significant increase in volume generated over the last year. This will include improved communications systems and warehouse facilities at a number of locations.
The 100% owned Energold Drilling Division expanded into Mexico in early 2005. An initial 2,000m program was conducted for IMPACT at its Zacualpan project. A second rig is currently on its way to Mexico to help service the demand. The Company is anticipating adding a total of 3 to 4 rigs to this division during 2005.
IMPACT Minerals International Inc. (IPT:TSX.V), subsequent to the end of the quarter, announced the results of its first four drill holes on the Royal Mines of Zacualpan Silver Project. Drill highlights of the Compadres Shoot included 4.4m of 2,713 g/t Ag including 0.4m of 27,793 g/t Ag, 3.4 g/t Au, 9.47% Zn and 7.52% Pb on the Concepcion Vein. The San Agustin Vein returned 1.6m of 3,234 g/t Ag, 2.67% Zn and 1.91% Pb including 0.7m of 7,010 g/t Ag, 0.73 g/t Au, 5.87% Zn and 4.26% Pb. IMPACT geologists also collected three samples from Level 3 of the Compadres Mine that averaged 12,591 g/t Ag and 12.07 g/t Au over 1.67m.
IMPACT's near term plans call for the compilation of the considerable database collected over the past nine months and continued field work to establish targets for another drill program planned for later this summer. This work, along with the corporate and engineering investigations, will form the basis for making a purchase decision of the Royal Mines of Zacualpan claims, operating mines and 500-tonne-per-day processing plant lease. If IMPACT decides to purchase the Zacualpan assets, it would immediately become a significant producer of silver.
George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the technical information described in this News Release for the Royal Mines of Zacualpan Project.
A webcast discussing the quarterly results is being scheduled for next week. 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 explorer IMPACT Minerals International Inc. (IPT:TSX.V) 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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