ENERGOLD DRILLING CORP. INTERNATIONAL CONTRACT DRILLERS
FORWARD LOOKING STATEMENTS Certain statements in the following presentation regarding Energold Drilling Corp. s business operations may constitute forward looking statements. Such statements are not historical facts, but are predictions about the future, which inherently involve risks and uncertainties, and these risks and uncertainties could cause our actual results to differ materially from those contained in the forward looking statement. George Gorzynski, P.Eng., a Qualified Person under the meaning of Canadian National Instrument 43-101,is responsible for the IMPACT Silver Corp. technical information in this presentation.
DRILLING INDUSTRY OUTLOOK Record Growth over last three years in base and precious metals commodity markets due in part to demand from Asia. Large Cash Balances are held by Exploration and Mining Companies due to record number of financings. Lack of Capacity to meet the current demand. Exposure to Sector without the commensurate risk. Not Married to a Single Project or Commodity,, drillers can participate in the upside of many metals and minerals.
COMPANY OVERVIEW OPERATIONS: Energold Drilling Corp. is in its fifth consecutive year of profitability. GROWTH: Energold has increased its fleet size by an average 30% per year. TECHNOLOGY: Energold is an industry leader in the use and construction of state-of of-the-art, highly-portable drills. ENVIRONMENTAL AND SOCIAL RESPONSIBILITY: : A unique approach to providing services.
OPERATIONAL STRATEGY Competition 1 MINE Target Market 10 PROJECTS: FEASIBILITY STUDIES / RESOURCE DEFINITION DRILLING 100 PROJECTS: SECOND PHASE DRILLING 1,000 PROJECTS: FIRST DRILL PROGRAM / SURFACE SAMPLING PROBABILITY PYRAMID 1 IN 5000 DEVELOPS INTO SUCCESSFUL MINE 5,000 PROJECTS: SURFACE AND SOIL SAMPLING
OPERATIONS Contract Drilling Services: : Energold is contracted through its subsidiaries to drill for mining and exploration companies. World-Wide Wide Operations: Energold has offices and/or operations in over 13 countries. Target Earlier Stage Projects: Not often feasible for larger companies. Contractor Of Choice: Once an earlier stage program is started, Energold will typically follow the project throughout all of the stages of its development. Competitive Depth Capacity: Series III Rig capable of drilling BTW core to depths of over 800m, NTW core to depths greater than 500m and HQ core to depths of 150m.
OPERATIONS
TECHNOLOGY New Technology: Technology is still evolving and is only starting to gain wide-spread acceptance in the exploration and mining industry. Proprietary Technology: Typical highly-portable rigs on the market have a depth range of between only 200 to 300m with BQ Core. Energold s s rigs have a depth range of over 800m. Rigs Built In-House: Building rigs in-house ensures that proprietary designs are not copied. Suggestions for improvements by drillers are continuously implemented throughout the fleet.
ENVIRONMENTALLY AND SOCIALLY SENSITIVE APPROACH An Environmentally Friendly Approach: Drills are man-portable and cause a small environmental footprint. Jobs can be completed without damaging trees and creating access roads to unspoiled wilderness. Energold has become synonymous with environmentally sensitive drilling. A Positive Social Impact: Man-portable rigs provide employment to impoverished communities. Helpers are trained in work-safe and acquire mechanical experience. Third Party Recognition: Environmental Excellence in Exploration Case Study (E3 Initiative) Mining Magazine 2007 Award Winner for Exploration Capital Equipment
CUSTOMER PROFILE Energold s s clientele includes a wide selection of mining companies. Existing clientele range from early stage junior explorers to well known, mature producers and span nearly every base and precious metal commodity. MAJORS: Barrick Gold BHP Billiton Goldcorp First Quantum Minerals Goldfields Inc. Iamgold Meridian Gold Newmont Mining Rinker Penoles JUNIORS: Aurelian Resources Corriente Resources Candente Resources Everton Resources Central Sun Mining Inc. GoldQuest Golden Goliath Resources Globestar Mining Olympus Pacific Resources Skeena Resources
Dominican Republic Ecuador Peru Yemen
HOLDINGS: IMPACT SILVER CORP. SYMBOL: IPT:TSX.V SHARE PRICE: $1.50 MARKET CAP: $75,000,000 Zacualpan Processing Plant OPERATIONS: Profitable, operating mines at Royal Mines of Zacualpan EXPLORATION: Huge exploration potential in both an under-explored explored 125km 2 silver district and a 200km 2 silver district DIVERSIFICATION: Foothold in the prolific Zacatecas Silver Region
HOLDINGS: IMPACT SILVER ROYAL MINES OF ZACUALPAN: 3 Operating Mines, 500tpd processing plant. CORP. 125 km 2 land claim package with early exploration results that include 4.4m of 2,713 g/t Ag (including 0.4m of 27,793 g/t Ag). 2 drills currently turning, project is wholly owned with no outstanding tanding royalties. 2006 Revenue: $7 Million 2006 Net Income: $973k (EPS: $0.03) MAMATLA SILVER DISTRICT: Under explored 200km2 district which saw $15M worth of exploration on on only a small portion of the project, historical drill results include 6 metres of 3.65g/t Au, 2218g/t Ag, 2.38% Zn, 5.67% Pb and 0.66% Cu. VETA GRANDE SILVER PROJECT: Seventeen mining concessions, an option on a 200tpd processing plant p and surface rights in Zacatecas State. Initial targets at the Cristian Mine returned 310 g/t Ag, 24% Pb, 8% Zn from high-grade grade surface dumps and at the San Pascual Mine, representative samples from the t dump around the shaft returned 875 g/t Ag.
LEGACY HOLDINGS: DOMINICAN PROJECTS One of the largest holder of exploration projects in the Dominican Republic. Longyear Concession: Located adjacent to Placer Dome s s 18+ million oz Au deposit. El Centenario Concession: GoldQuest spending US$1.0M to earn 60%. Indicated resources of 170,000oz* Au. One of the highest grade drill d intersections ran 14.28 g/t Gold over 18 meters. Nigel Hulme, P.Geo., a Qualified Person under the meaning of Canadian adian National Instrument 43-101, is responsible for the technical information of the Dominican Projects. *The* resources were determined to NI 43-101 standards under CIM definitions (August 2000) by Brian Cole, P.Geo., who is an independent qualified person.
FINANCIAL SUMMARY EPS Cash Debt $ Net Income Working Capital 2006 3,700,000 0.17 10,800,000 18,600,000 0 YTD - 2007 5,400,000 0.21 20,606,411 31,700,000 0
GROWTH STRATEGY AGGRESSIVE EXPANSION OF DRILL FLEET Expansion to 60 rigs by the end of 2008 DOMINANCE IN CURRENT MARKETS/ENTRANCE INTO NEW MARKETS Further expansion into regions such as Argentina and Africa OFFERING OF NEW VALUE ADDED SERVICES Camp facilities, cooks, core boxes, sperry-sun sun cameras and other high-margin products and services integral to the drill process INVESTMENTS IN INFRASTRUCTURE Investments into inventory to meet rising demand for services Opening of new offices and warehouses and hiring of new personnel
APPENDIX A: CORPORATE TRADING SYMBOL: SUMMARY SHARE PRICE: $4.10 ISIN EGD : TSX.V CA29268A1030 SHARES O/S: SHARES F/D: 29 MILLION 34 MILLION MANAGEMENT OWNS APPROX 10%
APPENDIX B: ENERGOLD TEAM Fred Davidson - President, CEO and Director James Coleman, LLB - Chairman and Director Richard Younker - Chief Financial Officer Anthony Shapiro Corporate Secretary H. Walter Sellmer - Director Michael J. Beley - Director Wayne Lenton - Director