News Release 09-13
Endurance Gold Corporation (EDG - TSX.V) reports its unaudited consolidated financial results and summary of activities for the second quarter ended June 30, 2009.
This summary of financial highlights should be read in conjunction with the Company's unaudited 2009 second quarter consolidated financial statements and Management's Discussion and Analysis available on www.sedar.com and Endurance's website at www.endurancegold.com.
- For the three and six months ending June 30, 2009, the Company reported a loss of $35,546 ($0.00 per share) and $150,800 ($0.01 per share) as compared with a loss of $164,083 ($0.01 per share) and $247,974 ($0.01 per share) in the respective periods in 2008.
- The net loss in the current quarter is inclusive of interest income of $798 ($5,080 in 2008), a realized loss on sales of marketable securities of $nil ($140 in 2008), an unrealized gain on marketable securities of $15,980 as compared to an unrealized loss of $66,900 in 2008, and a write down of $nil ($87 in 2008) in mineral property costs. Excluding these other items, the net loss for the second quarter ended June 30, 2009 would have been $52,324 ($102,036 in 2008).
- Working capital increased to $289,754 at June 30, 2009 as compared to working capital of $93,514 at December 31, 2008.
Summary of Activities
- During the current reporting period, the Company completed a first pass reconnaissance scale mapping and sampling program on five of six of its 100% owned properties comprising the Natrona Gold Project in Wyoming. As a result of that work, gold values up to 0.66 grams per tonne gold were identified from a geological environment identical to the adjacent Evolving Gold discovery. The sixth Endurance property is located approximately 8 kilometres west of the Evolving Gold discovery and has not yet been evaluated with geological prospecting. Endurance is currently planning the next phase of exploration activity, which will include more detailed mapping, extensive sampling, and orientation geophysical surveys (magnetics, CSAMT). The next program is expected to commence in early September. If results from the next program are encouraging, the Company will consider a fall 2009 diamond drilling program to evaluate priority targets.
- Endurance initiated the permitting process for the Carter Coal Property and received the required prospecting (including diamond drilling) permit in late July 2009. The Company, pending additional financing, plans to complete a small diamond drilling program to evaluate the areal extent of the Douglas Coal Seam, and potential for additional seams of mineable widths at depth, during the third quarter of 2009.
- The Company entered into an option agreement with Mount Logan Resources Ltd. ("Mount Logan"), a private Ontario corporation. Under the terms of the Agreement, Mount Logan can earn an initial 55% interest in the Company's Pardo Property by completing $1,000,000 in exploration expenditures and making cash payments totaling $200,000 to the Company over a three year period. On completion of its earn-in, Mount Logan has a one-time option to increase its ownership to 70% by completing an additional $1,000,000 in exploration, and making a further cash payment of $250,000 to the Company. Subsequent to June 30, 2009, the Company received a cash option payment in the amount of $50,000 from Mount Logan, and Ginguro Exploration Inc., a TSX Venture Exchange issuer, acquired a 100% interest in Mount Logan.
- Subsequent to the end of the reporting period, Endurance re-acquired by staking a 100% interest in 46 claim units located in Hutton and Parkin Townships, in east-central Ontario. The claims cover areas underlain by Proterozoic flat lying pyritic quartz pebble conglomerates that are analogues to the Pardo Property, but have seen no modern exploration for gold mineralization. The Company will complete a first pass reconnaissance mapping and sampling program on the properties in September 2009.
- Subsequent to the end of the reporting period, the Company announced a non-brokered private placement financing on August 4, 2009 for gross proceeds up to an amount of $1,100,000 by issuing 1,000,000 flowthrough shares ("FT Shares") at a price of $0.22 per FT Share and 4,000,000 non-flow through units ("Units") at a price of $0.22 per Unit. Each Unit consists of one common share and one-half share purchase warrant (the "Warrant"), each whole Warrant entitling the holder to acquire one common share of the Company for a period of up to two years, exercisable at a price of $0.30. The Warrant will be subject to earlier expiry if the Company's share closing price is above $0.50 for 20 consecutive trading days, any time after the expiry of the "hold" period. As at the date of this news release, the announced financing has not been closed.
ENDURANCE GOLD CORPORATION
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