Erdene Resource Development Corporation press release
Erdene Gold Reports 2004 Year-End Financial Results
TSX - Toronto Stock Exchange · Gold · Silver · Lead · Zinc · Molybdenum · Antimony · Copper · Canada
Outlines Exploration Plans for 2005
HALIFAX, May 2 /CNW/ - Erdene Gold Inc. (TSXV:ERD), a mineral exploration company focused on Mongolia, today announced its year-end results for fiscal 2004.
Highlights for Fiscal 2004: Raised $10.6 million in initial public offering in March 2004 Completed evaluation of eight projects including diamond drilling on three properties Confirmed an extensive mineralized copper-gold porphyry system at Temuujin on the Virgin property Extensive area of alteration and associated copper and gold mineralization identified at Wild Mountain High grade gold intersections returned from Blue Springs drilling Acquired key properties from Gallant Minerals, adding copper-molybdenum projects, early-stage gold and copper properties and a large uranium land package
"2004 was a transformational year for Erdene, marked by exploration progress on all our original projects and the acquisition of several exciting properties," said Peter Akerley, President and Chief Executive Officer. "We identified significant gold and copper mineralization at Temuujin and Wild Mountain, and have recently expanded our portfolio to include copper-molybdenum and uranium projects." Erdene's strategy is to focus on the discovery of gold, copper and molybdenum deposits in Mongolia with large bulk tonnage potential that are amenable to open pit mining and sustainable for the long term. "As an early entrant in Mongolia, Erdene has assembled a strong land position in the country, which is ideally positioned to benefit from the economic growth and increasing demand for minerals in neighbouring China," added Mr. Akerley. "Our goal in 2005 is to advance one or more of our core properties to the resource definition stage while bringing some of the earlier stage targets into the pipeline for 2006."
Erdene's five core properties include the following: Zuun Mod porphyry copper-molybdenum project in southwestern Mongolia, where drilling is underway; Temuujin copper-gold porphyry target, which will be tested by a deep-probing Titan geophysical program in the next few weeks designed to identify potential drill targets; Erdenet Mine Area Property, where geophysical surveying has just been initiated; Wild Mountain gold and copper prospect discovered in 2004, where extensive field investigations will begin in late June; and 19 uranium properties, where field evaluations have been underway since late April.
It is anticipated that drilling activities will continue in southwestern Mongolia throughout May, testing targets at Zuun Mod and other targets in the region. Results from current exploration on the remaining core projects will be evaluated in late June to define additional programs, including drilling, for later in the 2005 field season. Erdene will also carry out exploration in 2005 on a number of projects where early stage results warrant follow up exploration. Erdene anticipates that it will identify drill targets on one or more of these properties during the field season and periodically carry-out scout drilling programs. For a comprehensive review of Erdene's exploration results and plans, please refer to the Company's 2004 Annual Report available on Erdene's web site, www.erdene.com, or on SEDAR, www.sedar.com.
2004 Financial Overview The loss for the year ended December 31, 2004 was $4,436,620 or $0.19 per share, compared to $629,091 or $0.14 per share in the same period last year. Included in the 2004 loss were $3,435,009 of exploration expenses from the Company's 2004 exploration program on its eight, 100% owned Mongolian properties and a $287,619 non-cash stock-based compensation charge. Total expenses for the year ended December 31, 2004 were $4,634,201 compared to $637,633 for the same period in the prior year. Total assets at December 31, 2004 were $9,426,472 with $8,579,289 of this amount represented by cash compared with total assets and cash position at December 31, 2003 of $4,161,426 and $3,510,296 respectively. Shareholders' equity at December 31, 2004 was $9,256,996 as compared with $4,085,615 at December 31, 2003. The company had working capital of $8,487,724 as of December 31, 2004 and no long-term debt. The complete consolidated financial statements for December 31, 2004 and related notes, as well as management's discussion and analysis, are also available in the 2004 Annual Report on Erdene's web site, www.erdene.com, or on SEDAR, www.sedar.com.
About Erdene Gold Inc.
Erdene Gold Inc. is a mineral exploration company focused on Mongolia with over 20 precious and base metal projects that include 47 licences covering in excess of 840,000 hectares, as well as 19 uranium licences and applications covering more than 1.3 million hectares. Erdene is well funded with a current working capital position of approximately CDN$7.3 million. Erdene has 26,232,135 common shares issued and outstanding and a fully diluted share position of 30,828,910 common shares. Erdene Gold Inc. trades on the TSX Venture Exchange under the symbol ERD.
Forward-Looking Statements Certain information regarding the Company contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date. Erdene disclaims any intention to update or revise this statement of forward-looking information, whether as a result of new information, future events or otherwise.
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