|November 03, 2010|
Energold Announces New Record Number Of Meters Drilled
|Energold Drilling Corp. ("Energold" or "the Company") is pleased to announce that it has drilled a new Company record of 102,500 meters in the third quarter of 2010, up 136% from 43,500 meters in the comparable quarter of 2009. The previous record number of meters drilled in any quarter was 86,000 meters drilled during the previous quarter. Furthermore, over 242,900 meters were drilled in the nine months ended September 30, 2010, up 140% from the comparable period of 2009, demonstrating continued strong demand for exploration drilling in 2010. |
With increased demand from its clients, the Company continues to extend its positive quarterly growth over the last seven quarters since early 2009. As previously announced, the Company mobilized a large number of rigs earlier in the year that are expected to start to contribute to earnings in the third and fourth quarters. A shift in the type of drilling has been experienced by the Company as a larger number 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. With a significant increase in demand, a recent shift towards more 'frontier drilling' and more junior mining companies becoming active in implementing their exploration programs, the Company expects that increases in the average rate per meter will follow suit during the last part of 2010 and into 2011.
Mexico continues to remain the most active region, with Brazil and Colombia showing considerable demand as well; 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 September 30, 2010, the Company had 100 drilling rigs with 3 more under construction in response to continued demand for highly mobile drilling rigs and increased exploration expenditures in frontier drilling. The fleet includes 76 EGD Highly Mobile Surface Rigs, 7 EGD Underground Rigs as well as a number of conventional rigs. Further investment into research and development has resulted in retrofitting a number of the rigs to enhance their performance and the testing of two new 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 third quarter ended September 30, 2010 will be released at the end of November.
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
(604) 681-9501 or via email at email@example.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release. Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to proposed activities, work programs and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the effects of general economic conditions, the price of commodities, changing foreign exchange rates, actions by government authorities, title matters, environmental matters, reliance on key personnel, the ability for operational and other reasons to complete proposed activities and work programs, the need for additional financing and the timing and amount of expenditures. Energold Drilling Corp. does not assume the obligation to update any forward-looking statement.
You can view the Next News Releases item: Mon Nov 29, 2010, Energold Announces Profitable Third Quarter, Revenues Up 155%
You can view the Previous News Releases item: Thu Oct 21, 2010, Stock Options Granted
You can return to the main News Releases page, or press the Back button on your browser.