|July 27, 2010|
Energold Announces Record Number Of Meters Drilled
|Energold Drilling Corp. ("Energold" or the "Company") is pleased to announce that it has drilled a record 86,000 meters in the second quarter of 2010, up 131% from 37,200 meters in the comparable quarter of 2009. The previous record number of meters drilled in any quarter was 73,400 meters drilled during the third quarter of 2008. Furthermore, over 140,000 meters were drilled in the six months ended June 30, 2010, up 143% in the comparable period of 2009, demonstrating continued strong demand for exploration drilling. |
Summary of Quarterly (Q) Meters Drilled
The Company's positive quarterly growth since early 2009 continued through the second quarter of 2010. A number of rigs mobilized during the first four months of the year have not yet fully contributed, as they are arriving at their prospective programs in the second and third quarters. A shift in the type of drilling has been experienced by the Company as the majority of the rigs recently mobilized are for exploration programs in the 'frontier drilling' segment which demands higher pricing and margins. Frontier drilling includes drilling in remote areas where access is difficult or impossible for traditional drilling rigs due to lack of infrastructure or social and environmental issues. The Company expects that with the significant increase in demand and recent shift towards more 'frontier drilling', increases in the average rate per meter will follow suit during the third and fourth quarters.
Mexico remains the most active region; however, a significant portion of the drilling continues to be 'brownfield exploration', typically mine site drilling. This demonstrates the growing acceptance and competitiveness of our drilling techniques in more traditional markets.
At June 30, 2010, the Company had 94 drilling rigs with 1 more under construction in response to continued significant demand for highly mobile drilling rigs and increased exploration expenditures in frontier drilling. The fleet includes 69 EGD Highly Mobile Surface Rigs and 6 EGD Underground Rigs as well as a number of conventional rigs. Further investment into research and development has resulted in the testing of two prototypes designed to expand the potential of its highly mobile fleet and the value of the Company's service offering to its clients.
The financial results for the second quarter ended June 30, 2010 will be released at the end of August.
Energold Drilling Corp. is an environmentally and socially sensitive diamond drilling company that services the mining industry. Energold holds 6.6 million shares of IMPACT Silver Corp., a profitable silver producer in Mexico.
On behalf of the Directors of Energold Drilling Corp.,
"Frederick W. Davidson"
President and Chief Executive Officer
For further information, please contact:
Sunny Pannu, Investor Relations
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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Telephone (604) 681-9501
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