|August 29, 2005|
Energold Announces 12th Consecutive Profitable Quarter and Date of Webcast
|Energold Mining Ltd. (EGD:TSX.V) is pleased to announce the consolidated results for the quarter ended June 30, 2005. The Company fully consolidates its 50% subsidiary Kluane International Drilling and its affiliates, and its 30.5% subsidiary IMPACT Silver Corp. (formerly IMPACT Minerals International Inc). The company earned $344,679 ($0.02 earnings per share) in the second quarter despite a "stock based compensation expense" of $300,179 ($0.02 per share). Gross drill revenues for the year to date were $7.2 Million. At the end of the quarter, consolidated working capital was $13.3 Million and cash was $6.8 Million. |
Energold continues to place its focus on its contract drilling activities through its 50% interest in Kluane as well as its 100% owned Energold Drilling Division. Drilling during the second quarter was a record high, with a six-month total of 58,061 m. drilled. These results were achieved in spite of executing a number of smaller contracts rather than the large contracts we experienced in 2004. What we believe is a temporary decline in activity in Peru, also meant that our strongest division in terms of margins did not provide the contribution we hoped. During the next twelve months, the Company will be increasing its commitment to research and development as well as expanding product lines to better serve clients. At this time, the Company has a total of 19 drills with an additional two under construction.
The 100% owned Energold Drilling Division in Mexico currently has two drills with a third rig under construction. The Company anticipates adding a total of three to four rigs to this division during 2005.
Energold will be reviewing its 2005 Second-Quarter results live via the Internet at 4:00 pm ET, 1:00 pm PT, Tuesday, August 30, 2005. The live webcast (audio only) can be accessed at: http://events.onlinebroadcasting.com/energold/083005/index.php and will feature management discussing Energold's financial and operational results ending with a question and answer period.
Energold Mining Ltd. is an environmentally and socially sensitive diamond drilling company that services the mining industry.
On behalf of the Directors of Energold Mining Ltd.
"Frederick W. Davidson"
For further information, please contact:
Darrell Rader - Corporate Development
The TSX Venture Exchange has neither approved nor disapproved this news release.
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