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Re: News Release - Tuesday, July 10, 2007
Energold Increases Drill Fleet By 18%
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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"
President, CEO
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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Copyright (c) 2007 ENERGOLD DRILLING CORP. (EGD) All rights reserved.
For more information visit our website at http://www.energold.com/ or
send mailto:info@energold.com
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