|May 12, 2011|
Energold Announces New Record Number of Meters Drilled in First Quarter 2011
|Energold Drilling Corp. ("Energold" or the "Company") is pleased to announce that it has drilled another company record of 125,800 meters in the first quarter of 2011, up from the previous record of 103,400 meters in the fourth quarter of 2010. This is also a 131% increase over the comparable period in 2010, of 54,500 meters.|
Summary of Quarterly (Q) Meters Drilled
The first quarter for 2011 continues to demonstrate renewed confidence from clients in all stages of the drilling process. 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 for commodities in general, 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 balance of the year and into 2012. 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. Africa's growth continues to be very strong with approximately one third of the fleet now located there.
At March 31, 2011, the Company had 110 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 86 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 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 first quarter ended March 31, 2011 will be released in the last week of May.
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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