|July 10, 2007|
Energold Increases Drill Fleet By 18%
|Energold Drilling Corp. ("Energold") is pleased to announce that it has recently contracted for the construction of six new drill rigs to be completed by September of this year. This represents the first phase of an unprecedented expansion strategy funded by the recently completed $15 million financing. One of the six new rigs has just been commissioned and with it, the total fleet at the end of June stands at 34 rigs. By September, the total number of rigs will be 39, of which two-thirds will be fully-owned. Energold has traditionally self-financed its expansion organically through cash flow, limiting the construction of additional drill rigs to two to three at a time. Energold's strategy will focus on both expanding into new markets and increasing its presence in existing markets by doubling current drill rig construction capacity and pursuing potential acquisitions.|
Energold specializes in areas of social and environmental sensitivity and in frontier markets where infrastructure is inadequate or non-existent. Management believes that current world exploration budgets will equal or exceed last year's record expenditures and demand for drilling services will continue to increase substantially in the near-term due to the massive inflow of funds for exploration companies. Further, as long-term fundamental demand indicates, in the global markets the supply of metals will remain relatively tight. Energold believes that it has to take advantage of these conditions through the rapid expansion of its drilling fleet in order to realize the potential of its profitable niche. As of July 2007, drill contracts are being turned away on a regular basis through the lack of drills and the majority of the drill fleet is backlogged into late fall.
In order to achieve its growth ambitions, Energold has and will continue to invest significantly in its people and into the addition of new drill rigs and infrastructure to service them. In existing markets, Energold sees substantial growth potential, particularly in Latin America and Africa. With the funds now available, new markets can be accessed through either the direct beach-heading of new markets or by possible strategic acquisitions of existing operations. In Africa, where a significant portion of the future expansion will occur, utilization is growing faster than expected and our objective of doubling revenue year over year in Africa should be accomplished.
The expansion in the fleet and countries serviced will also maximize Energold's ability to train and recruit drilling crews and generate savings through larger purchasing power due to critical mass.
Energold Drilling Corp. is an environmentally and socially-sensitive diamond drilling company that services the mining industry. Energold currently holds 6.6 million shares of IMPACT Silver Corp.
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 does not accept responsibility for the adequacy or accuracy of this news release.
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