News release - 1st quarter earningsVangold Releases First Profitable Q1 Results
Tuesday May 30, 7:31 pm ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--May 30, 2006 -- Vangold Resources Ltd. ("Vangold") (TSX VENTURE:VAN.V - News) published its 2006 first quarter unaudited consolidated financial and operating results on May 30, 2006. Complete financial statements may be reviewed at www.vangold.ca or www.sedar.com.
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Dal Brynelsen, President and CEO of Vangold, states: "I am very pleased to report during the First Quarter 2006, Vangold achieved profitability for the first time in its history. This milestone is rare, and an important event for a junior resource company. My thanks to Vangold's global team of directors, employees and consultants for their daily contribution. We set out to acquire properties in gold camps capable of producing world-class ore bodies, we secured such properties in Papua New Guinea, and we added to our portfolio by acquiring a number of gold and base-metal properties in Uganda. The results of our exploration programs indicate that we have the potential to discover several significant ore bodies, and our properties at Mt. Penck, Mt. Nakru, Bismarck and Feni Islands show great promise. We also participated in oil and gas projects to establish a steady revenue stream, and the realization of our strategy is now reflected in the numbers. We thank all shareholders for their continued strong commitment to Vangold."
During the first quarter 2006 total revenue increased 875% from the same period in 2005. The financial highlights are as follows:
- Total assets increased from $8,784,016 as at December 31, 2005 to $11,898,944 as at March 31, 2006 an increase of 35%;
- Total revenue for the first quarter ended March 31, 2006 was $ 948,764 an increase of 875% or $847,881 over the same period for 2005. Gross revenue from the East Corning Field was $55,413 and from the Killam North oil field $876,182;
- Total expenses for the first quarter ended March 31, 2006 were $568,341 compared to $303,018 for the same period in 2005;
- Net income for the first quarter ended March 31, 2006 was $85,039 ($0.001) per share compared to a net loss of ($223,812) ($0.01) for the same period in 2005;
- Cash and cash equivalents were $3,972,564 compared with $2,108,471 for 2005;
- Total working capital as at March 31, 2006 was $4,364,068 compared with $2,124,700 for 2005.
Vangold is a diversified natural resource company with a portfolio of 22 diverse advanced stage projects including revenue generating oil and gas projects.
In the gold sector, drilling is underway at Mt. Penck (Papua New Guinea) which has been compared to Nevada's Round Mountain Mine (9 million ounces). In Uganda, Vangold has licenses covering over 60 sq km in the prospective Kilembe copper/cobalt belt, licences covering over 300 sq km in the Kilo Moto region and licenses covering over 287 sq kms in the Kafunzo area.
Vangold's oil and gas drilling programs in Alberta, Canada, include the Killam North oil field. Since late 2005, Vangold and its partners drilled five successful multi-leg horizontal wells. The first well was placed on production in November 2005 and the last in February 2006. Vangold holds a 26.25% interest. Production from these wells is stabilized at approximately 1,240 barrels of oil per day, 325 barrels net to Vangold's interest.
Vangold's Alberta projects also include the Sarcee Gas Discovery, (the Sarcee 12-13-23-4W5M well is estimated to be 20 to 30 BCF (Sproule Associates Ltd.)). Another of Vangold's Alberta gas projects is located in the Rocky Mountain House Deep Gas Basin which is close to Shell's trillion cubic feet pool.
On Behalf of the Board of
VANGOLD RESOURCES LTD.
Dal Brynelsen, President and CEO