|March 04, 2011|
Energold Announces New Record Number Of Meters Drilled
|Energold Drilling Corp. ("Energold" or the "Company") is pleased to announce that it has drilled another company record of 103,400 meters in the fourth quarter of 2010, up 106% from 50,100 meters in the comparable quarter of 2009. Normally considered one of the slowest periods of the drilling season, the meters completed exceed the previous company record of 102,500 meters drilled in the third quarter. Over 346,300 meters were drilled in the twelve months ended December 31, 2010, up 129% from the comparable period of 2009, demonstrating the strong recovery for drilling in 2010. |
Summary of Quarterly (Q) Meters Drilled
During 2010, the industry experienced renewed confidence from clients in all stages of the drilling process continuing into 2011. In the first half of the year, the Company mobilized a large number of rigs that contributed significantly to meters drilled in the third and fourth quarters. A substantial portion of the drilling continues to be the more competitively bid 'brownfields exploration', typically mine sites or near mine site drilling. With the significant increase in demand, there has been a shift towards more 'frontier drilling' and it is anticipated that the new rigs currently being mobilized will be dedicated to servicing this market, which should impact on the average rate per meter during the 2011 year. Mexico continues to remain the most active region in Latin America with Brazil, Colombia and Peru showing increasing demand from the prior year, demonstrating the growing acceptance and competitiveness of our drilling techniques in more traditional markets.
At December 31, 2010, the Company had 103 drilling rigs with 5 more under construction in response to continued demand for highly mobile drilling rigs and increased exploration expenditures in frontier drilling. The fleet includes 78 EGD Highly Mobile Surface Rigs, 7 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 field 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 fourth quarter ended and December 31, 2010 fiscal year end will be released in April.
Energold Drilling Corp. is an environmentally and socially sensitive diamond drilling company, taking the lead on what is rapidly becoming the new standard for the mining industry. Energold holds 6.87 million shares of IMPACT Silver Corp., a profitable silver producer in Mexico.
On behalf of the Directors of Energold Drilling Corp.,
"Frederick W. Davidson"
For further information, please contact:
Sunny Pannu -- Investor Relations
(604) 681 9501 or via email at firstname.lastname@example.org
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, a reduction in the demand for the Company's drilling services, the price of commodities, changing foreign exchange rates, actions by government authorities, the failure to find economically viable acquisition targets, 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.
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