NEWS RELEASE 08-05
Endurance Gold Corporation (EDG - TSX.V) is pleased to report its audited financial results and summary of activities for the year ended December 31, 2007.
This summary of financial highlights should be read in conjunction with the Company's 2007 audited financial statements and Management's Discussion and Analysis available on www.sedar.com and Endurance's website at www.endurancegold.com.
Financial Highlights
- The Company reported a net loss of $152,625 or $0.01 per common share in fiscal year 2007, compared to a net gain of $79,133 or $0.00 per common share in 2006. The net loss in the 2007 fiscal year is inclusive of a non-cash future income tax recovery of $225,196 ($352,330 in 2006) that relates to the renouncement of $998,200 ($1,200,000 in 2006) of flow-through expenditures to investors.
- Working capital increased to $1,116,268 at December 31, 2007 from $204,265 in 2006. During the 2007 fiscal year, the Company completed a brokered and a non-brokered private placements, raising gross proceeds of $2 millions by issuing 4,340,000 flow through shares at a price of $0.23 per share and 4,397,600 non-flow through units at a price of $0.23 per Unit. Each unit is comprised of one common share and one common share purchase warrant. Each share purchase warrant can be exercisable for a period of up to eighteen months at a price of $0.40 into one common share.
- Expenses before other items for the year ended December 31, 2007, totaled $350,012 ($264,462 in 2006), $85,550 higher than the comparable expenses incurred in fiscal 2006, which amount included a Stockbased compensation expense (a non-cash charge) of $60,779 ($17,836 in 2006), incurred as a result of the vesting of 450,000 (175,000 in 2006) stock options granted in the current year.
Summary of 2007 Activities
The Company incurred approximately $900,000 ($800,000 in 2006) in exploration expenditures in year 2007. The Company's exploration efforts during 2007 were primarily focused on the Pardo and Turner Projects, in Ontario, and the BQ Project in British Columbia.
Pardo Project, Ontario
The Pardo Project is located 65 kilometres northeast of Sudbury, in east-central Ontario. The Company is earning a 100% interest in the property, subject to a 3% net smelter return ("NSR") royalty, by making cash payments totaling $100,000 and issuing 200,000 shares by November 16, 2009. As of the date of this report, the Company has made cash payments totaling $30,000 and issued 60,000 shares. Duncan McIvor, the President and CEO of the Company, is a minority underlying vendor of the Pardo Property.
During 2007, the Company completed;
- A 14 line-kilometre Gradient Induced Polarization ("IP") survey on the property, focusing on the Trench 2 Area and its immediate strike extensions. Several strong IP chargeability anomalies were identified by the survey, including a very strong chargeability high that extends for a strike length of 200 metres north of, and 200 metres south of the Trench 2 Area. During the 2006 field season, surface channel sampling at Trench 2 returned values to 3.5 grams per tonne gold ("gpt Au") over 13.5 metres.
- Geological mapping over a 20 line-kilometre grid cut last fall on the property. Again, the grid was centered on the Trench 2 Area, and the mapping program was designed to identify extensions of the host conglomerate unit away from the previously identified mineralization. The program successfully identified several new conglomerate hosted targets, returning grab sample values to 1.8 gpt Au. All zones require follow-up detailed additional sampling.
- A 639 sample humus geochemical survey over the 20 line-kilometre grid. Results from the geochemical survey returned several significant anomalous clusters, with individual samples carrying gold values to as high as 370 parts per billion.
- A fifty-six hole, 652 metre diamond drilling program on the property. Thirty seven of the holes were drilled in the Trench 2 Area. An additional eighteen holes tested strong IP anomalies south and east of the Trench 2 Area. Four hundred and seven samples were split during the program. Of the 407 samples split during the program, 326 samples were of pyritic, basal quartz pebble conglomerate, the target horizon of the diamond drilling program. The average composite gold grade of the 326 samples, from a cumulative 313.86 metres from all drill holes, was 0.405 gpt gold. Samples were also re-analyzed by both Total Cyanide Leach and Screen Fire Metallic methods, with results reported in the MD&A. Importantly, the Total Cyanide Leach results provide a preliminary indication that the gold can be readily liberated from mineralized conglomerates through simple crushing, grinding, and cyanide leaching.
- An expansion grid by approximately 50 line-kilometres, extending coverage an additional 500 metres to the east, 500 metres to the west, and 1,500 metres south, over which reconnaissance scale prospecting and sampling defined multiple new mineralized targets on the property.
- A detailed 1:20,000 scale aerial survey of the property, which provided high resolution colour aerial photography, an orthophoto base map, and detailed 1:2,000 scale digital elevation maps, which will greatly enhance planning of all future exploration, and in particular, diamond drilling programs on the property.
- An additional 30 line-kilometres of Induced Polarization surveying over portions of the newly established grid, which defined multiple new strong chargeability anomalies requiring drill testing.
The results of the 2007 program continued to point to a substantial gold mineralizing system at the base of the Proterozoic sedimentary basin. Surface data has indicated the target conglomerate horizon carries strongly anomalous gold values in excess of 0.5 gpt over an area measuring five kilometres by 2 kilometres, of which drilling to date has tested an extremely small portion. Endurance remains excited about the potential of the Pardo Property, and will be commencing a 2,000 metre diamond drilling program on the property in June, 2008.
Turner Project, Ontario
The Turner Project, comprised of 17 claims totalling 223 claim units and 3,568 hectares, is located 40 kilometres north-northwest of the Pardo Project, in east-central Ontario. Endurance owns a 100% interest in all claims comprising the property.
During 2007, the Company completed;
- 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.
- A ground magnetic-VLF geophysical survey over the established grid. This work assisted in defining the contact zone between the underlying Archean volcanic and iron formation assemblages, and the overlapping Proterozoic sediments.
- A short reconnaissance mapping and sampling program over the historic showing area, and over the prospective iron formation target along the western portion of the grid. Analytical results from samples collected returned only very weakly anomalous uranium and gold values from the conglomerates. Weak gold anomalies, to 175 ppb, were also returned from the Archean iron formation. Only minor additional work is contemplated for the Turner property.
BQ Project, British Columbia
The BQ Project is located 25 kilometres northwest of Smithers, in northwestern British Columbia. Endurance is earning a 100% interest in the property, subject to a 3% NSR, by making cash payments totalling $70,000 (of which $32,500 has been paid) and issuing 250,000 shares (of which 100,000 have been issued) by September 27, 2008.
During 2007, the Company completed;
- An 814 line-kilometre high resolution EM - magnetic airborne survey over the property. The results of that airborne survey identified several prospective EM and magnetic targets requiring ground follow-up.
- A 28 line-kilometres new grid, as eastern and northern extensions to the existing grid. The new grid was designed to cover both EM and magnetic targets of interest. A program of soil sampling and Induced Polarization surveys were subsequently completed over the grid extensions. That work identified several multi-element (Au, Au-As, Ag, Ag-Pb-Zn) soil anomalies, and moderate IP chargeability anomalies, over a strike length of 2 kilometres. A diamond drilling program to evaluate the new target areas is anticipated during 2008.
Outlook
The Company plans to focus its 2008 exploration efforts on the Pardo property in Ontario, and the BQ and Nechako 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.
ENDURANCE GOLD CORPORATION
Duncan McIvor
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT EITHER
Endurance Gold Corporation
Duncan McIvor; (604) 682-2707, dmivor@endurancegold.com
Jeffrey Wilson, Corporate Communications; (604) 868-0225, jwilson@endurancegold.com
www.endurancegold.com
Renmark Financial Communications Inc.
Christopher Wells: cwells@renmarkfinancial.com
Melanie Lecavalier: mlecavalier@renmarkfinancial.com
Tel.: (514) 939-3989
Fax : (514) 939-3717
www.renmarkfinancial.com
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