|November 29, 2005|
ENERGOLD ANNOUNCES 13th CONSECUTIVE PROFITABLE QUARTER
|Energold Drilling Corp. (EGD:TSX.V) is pleased to announce the consolidated results for the quarter ended September 30, 2005. The Company fully consolidated its 100% owned Energold Drilling subsidiary, its 50% subsidiaries Kluane International Drilling and Pac Rim Drilling S.A.C., and their affiliates. The Company earned $412,171 ($0.02 earnings per share) in the third quarter and $995,890 ($0.05 earnings per share) for the year to date. Gross drill revenues for the year to date were $10.9 Million. At the end of the quarter, consolidated working capital was $13.6 Million and cash was $6.8 Million.|
As indicated by its recent name change to Energold Drilling Corp., the Company continued its strategic shift toward focusing on its potential as a contract diamond drilling company. Through its interest in Kluane as well as its 100% owned Mexican subsidiary, the Company has a total of 23 drills ---either operating or mobilizing--- and one additional drill under construction. Included in the total is the Company's new SS-51 drill rig, which enables the Company to service a broader spectrum of projects while complementing its current activities and existing infrastructure. The SS-51 will be operated in conjunction with Suisse Diamond Drilling Ltd. of Smithers, BC, and will be the start of a new, but limited division of heavy rigs for the Company.
Results for the quarter were based on the execution of a number of smaller drilling contracts rather than the larger contracts serviced in 2004. With smaller contracts, both the start-up and the relative administrative costs are higher and overall drill utilization is reduced. What appears to have been a temporary decline in activity in Peru also meant that our strongest division did not provide the contribution we anticipated. Fortunately, new contracts and increased activity in Guatemala and Ecuador offset some of this decline.
IMPACT Silver Corp. (IPT:TSX.V), of which the Company holds 6,205,001 shares, has continued to release high grade silver results from its Royal Mines of Zacualpan Silver Project. Exploration and engineering studies continue at the project in central Mexico. The final conclusions from these activities will form the basis for making a purchase decision for the project's claims, operating mines, and 500-tonne-per-day processing plant lease from the Mexican owners.
The Company has set a number of objectives for the next 12 to 18 months. The Company will be increasing its research and development to enable it to keep ahead of the industry, as well as expanding existing product lines and value-added services. The Company anticipates the addition of approximately six to seven of its new Series III rigs during the period, which will be used to more deeply penetrate existing markets, as well as expand into at least one new market. Additional heavy rigs will be added only in response to market demand.
A webcast discussing the quarterly results is being scheduled for Thursday, December 1st. Further details will follow. Energold Drilling Corp. is an environmentally and socially sensitive diamond drilling company that services the mining industry.
On behalf of the Directors of Energold Drilling Corp.,
"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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