November 07, 2007
Endurance Reports 2007 Third Quarter Financial Results And Summary Of Activities
|Endurance Gold Corporation (EDG -- TSX.V) is pleased to release its unaudited interim financial statements and summary of activities for the nine months ended September 30, 2007.|
This summary of financial highlights should be read in conjunction with the Company's unaudited 2007 third quarter financial statements and Management's Discussion and Analysis available on www.sedar.com and Endurance's website at www.endurancegold.com.
Summary of Activities
- The Company's net loss for the nine month period ended September 30, 2007 was $247,160 or $0.01 per common share, as compared to a net income of $245,062 or $0.01 per common share for the same period in 2006. The net income incurred in the same period in 2006 reflects a non-cash income tax recovery of $419,400 that relates to the renouncement of $1.2 million in flow-through expenditures to investors in February 2006. This income item effectively reduces Capital whilst also decreasing Deficit by the same amount. There is no effect on cash.
- Working capital increased to $1,253,369 at September 30, 2007 as compared to working capital of $204,265 at December 31, 2006. The increase is primarily attributed to the Company completing two financings in March 2007 and receiving gross proceeds of $2,009,648 by issuing 4,340,000 flow-through shares and a total of 4,397,600 units. Each unit consists of one common share and one share purchase warrant entitling the holder to purchase one common share of the Company for a period of eighteen months at a price of $0.40.
The Company exploration efforts during the nine month period ended September 30, 2007 were primarily focused on the Pardo and Turner Projects in Ontario, and the BQ Project in British Columbia. In addition, joint venture partners completed a significant amount of work on the Dogpaw Project. Activities year-to-date include:
Pardo Project, Ontario
Turner Project, Ontario
- Completion of a 14 line-kilometre IP survey in the Trench 2 Area, defining several strong IP chargeability anomalies.
- Completion of detailed geological mapping over a 20 line-kilometre grid on the property, which defined several new surface showings in the targeted basal conglomerate, all requiring follow-up detailed sampling.
- Completion of a 20 line-kilometre, 639 sample humus geochemical survey. Analytical results from this survey are pending, and will be released on receipt. Historical work on the property suggests humus geochemistry is an excellent tool in outlining zones of gold mineralization within the conglomerate.
- Completion of a 56 hole, 652 metre diamond drilling program on the property. Thirty seven of the holes were drilled in the Trench 2 Area. The holes, all vertical, tested the flat lying basal conglomerate on 10 metre centres, over an area measuring approximately 50 metres by 50 metres. Thirty six of the thirty seven holes intersected at least some thickness of conglomerate, ranging from less than one metre to in excess of eleven metres. Sulphide content within the conglomerate was highly variable, ranging from less than 1% to in excess of 20% over localized widths. An additional eighteen holes tested strong IP anomalies south and east of the Trench 2 Area. Again, these holes intersected variable thicknesses of conglomerate, with sulphide contents ranging from less than 1% to 5-7% in places. A complete set of fire assay analytical results appear in the Management Discussion and Analysis, and have also been previously reported in Endurance News release #07-19, dated October 01, 2007. The results, while mixed, continue to point to a substantial gold mineralizing system at the base of the Proterozoic sedimentary basin.
- Expansion of the existing grid by approximately 50 line-kilometres, extending coverage an additional 500 metres to the east, 500 metres to the west, and 1500 metres south. Two additional grids totaling approximately 20 line-kilometres will also be emplaced on target areas in the southern portion of the property. As at the date of this news release, that work is on-going.
- Commencement of a 1:20,000 scale aerial survey of the property. The survey will provide high resolution colour aerial photography, produce an orthophoto base map, and provide a detailed 1:2000 scale digital elevation map with 2 metre contours. The data will be used to establish the reliable elevation controls necessary to better understand the extent and distribution of gold mineralization within the flat lying, Proterozoic aged basal conglomerates.
- Additional analyses of all conglomerate horizons encountered during the July 2007 diamond drilling program, including complete cyanidation of the entire sample, and selected screen fire metallic assays. Those results are pending.
BQ Project, British Columbia
- Completion of a 26 line kilometre grid over a portion of the property where previous exploration activity from the 1950s returned anomalous uranium values to 0.27% U3O8 over seven feet on surface, and narrow drill intercepts to 0.06% U3O8. The host pyritic conglomerate appears to be very similar to the basal conglomerate at Pardo, and is believed to be prospective for gold, as well as low grade uranium.
- Completion of a ground magnetic-VLF geophysical survey over the established grid. That work assisted in defining the contact zone between the underlying Archean volcanic and iron formation assemblages, and the overlapping Proterozoic sediments.
- Completion of a reconnaissance scale prospecting and sampling program over the historically documented uraniferous conglomerates, as well as adjacent gold targets associated with Archean banded iron formation. Analytical results from this program are pending.
Dogpaw Project, Ontario -- Houston Lake Mining Option
- Completion of an 814 line-kilometre high resolution EM -- magnetic airborne survey over the property, completed in late July by Aeroquest Ltd.. Results were extremely beneficial in generating a property scale geological map, and identified several prominent magnetic and electromagnetic features that require ground truthing.
- Completion of an additional 31 line-kilometres of grid, extending coverage east another two kilometres, and collection of approximately 600 soil samples from that extended grid. Analytical results from the soil survey are pending.
- Commencement of a 10 line-kilometre Induced Polarization survey over selected lines on the newly completed grid extension. At the date of this news release, that work is on-going.
In January, 2007, Endurance optioned a portion of the property comprising 2 land packages totaling 28 claim units to Houston Lake Mining Inc. of Sudbury, Ontario. The one year Dogpaw Lake Agreement required Houston Lake to issue 100,000 shares and to apply a total of $56,000 in approved assessment work for a 100% interest in the two claim blocks. Houston Lake met those commitments during the Second Quarter, and as a consequence has earned a 100% interest in the claims in question, subject to a 2.5% NSR royalty interest retained by Endurance.
Dogpaw Project, Ontario -- North American Uranium Option
In March, 2007, the Company optioned the remaining 14 claims comprising the Dogpaw Property to North American Uranium Corp ("NAUC"), a private British Columbia company, whereby NAUC can acquire up to a 75% interest in the property. Under the terms of the Agreement, NAUC may earn an initial 70% interest (the "Initial Option") through issuing 400,000 shares to Endurance, which have been received, and by completing $200,000 in exploration expenditures on the property by June 30, 2007. As at the end of the Second Quarter 2, NAUC had completed the required $200,000 exploration expenditure, and had earned its 70% interest in the claims in question. The results of that work, which included diamond drilling, are currently under review. NAUC has the right to acquire an additional 5% interest through issuing 50,000 shares and completing another $250,000 in exploration on the property. Due to delays in certain regulatory issues, NAUC has been granted an extension to November 30, 2007 to determine if it will elect to exercise that option.
- The Company acquired by staking, a 100% interest in an additional 6 claims, located in Hutton and Parkin Townships in the Sudbury Mining Division of east-central Ontario in May 2007.
The Company intends to continue aggressive exploration programs on the Pardo and Turner properties in Ontario, and the Nechako and BQ properties in British Columbia. The Company will continue to review, evaluate, and potentially acquire new, highly prospective land positions, either by staking, purchase or option, or by negotiating joint venture agreements.
Duncan McIvor, P. Geo., is the Qualified Person under National Instrument 43-101, and is responsible for the content of this news release.
ENDURANCE GOLD CORPORATION
Per: /s/ Duncan McIvor
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT EITHER
Duncan McIvor (604) 682-2707, or Jeffrey Wilson, Corporate Communications (604) 868-0225, or visit our website at www.endurancegold.com.
The TSX Venture Exchange or any other regulatory authority has not reviewed, and does not accept responsibility for, the adequacy or accuracy of this news release.