The three key aspects of the Company's strategy are:
1. Transition advanced projects from exploration to delineation2. Demonstrate not just geological potential; but also the skills, resources and determination to deliver on the promised value.3. A third key ingredient here is the focus on just two projects, Wharekirauponga (WKP) and Neavesville, sustained by the placer mining being run autonomously by its own Operations Manager. The aim is to deliver within a 2-3 year timeframe, on both projects.
Progress on these aspects is as follows:
Wharekirauponga (WKP) Gold Project in Hauraki, New Zealand
Newmont Waihi Gold (65%); Glass Earth Gold Limited (35%)
The HJV has commenced a significant exploration programme for 2013, focussing initially on the evaluation of the Eastern Graben Structure and to include a project first resource estimate, metallurgical test work, rock engineering study, geophysics and a 2,500m diamond drill programme. The estimated cost for this programme is NZ$2.7 million (C$2.2m).
In April 2013, the Company announced the results of drill holes 36 and 37 at the WKP gold-silver prospect, Hauraki, New Zealand and, after a period of three months, when drilling was interrupted due to the drought conditions prevailing in New Zealand, the commencement of its 2013 diamond drill program.
Holes WKP 36 and 37 carried modest grade intersections, and bring useful information on the structure of the mineralised system that occurs at WKP and contribute to narrowing down targets for the current drilling campaign.
This marks a further step forward in the development of this project, where several broad zones of 100m of 1 g/t gold and silver, and significant high grade intersections 3-9m of 15-60 g/t gold and silver have encouraged the exploration team. Results to date have demonstrated that the WKP project as a whole represents a very large gold mineralised system.
Neavesville Gold Project in Hauraki, New Zealand (Glass Earth 50%)
Located immediately north of the WKP project and Martha Mine, Hauraki, New Zealand).
Prior to work commencing access arrangements with local Iwi landowners is required, these negotiations are progressing.
Following successful access negotiations, field work is planned to:
-- re-interpret geological model & recalculate resource potential;-- Commence resource drill programme to update and improve confidence of resources-- follow-up on additional multiple gold/silver targets identified.
The Neavesville project offers the opportunity to have management and control over the development of a significantly advanced gold /silver project. The project also offers tantalising new targets to increase the size and potential of the prospect. In the vicinity of GEG's other Hauraki projects (WKP, Glamorgan, and Waihi West), Neavesville will focus GEG's exploration/development efforts in the region of Newmont Waihi Gold's, Martha Hill mining operations.
PLACER MINING - Central Otago, New Zealand
The technical work in the NI 43 101 Technical Report on Glass Earth's Placer Projects, lodged in February 2013, consolidated GEGL's existing knowledge of its placer gold resources offering potential to extend the placer mining operations for a significant period.
-- Sales revenues of $1.38m for Q1, from mining operations, matched the previous fourth quarter sales of $1.4m and were a significant advance on the prior year period (3 months to 31 March 2012, $0.167m).-- The mining operations reported a cash operating loss of $246,000 for the 3 months. Depreciation of equipment and amortisation of exploration and acquisition costs for the quarter stood at $270,000.-- The Company's response is to mine on a 24/7 basis on one site only, in order to maximise efficiencies and reduce leased equipment costs. Grade control is also being reassessed in the light of the reduced gold price. The changeover is scheduled for late May.-- In Q2, Glass Earth is expecting to report a lower cash loss from placer mining but that trend is expected to reverse with the above noted changes and placer mining is expected to generate positive cash flow in Q3 and Q4 while producing approximately 2,600 oz of gold.
The Company's cash position as at March 31, 2013 was $1,192,000;
-- Trade payables totalled $497,000;-- Current and term liabilities in relation to the placer acquisition comprise sixteen monthly payments of NZ$80,000 (C$65,936);
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor New Zealand Exchange Limited has reviewed this release and neither accepts responsibility for the adequacy or accuracy of this release.
Glass Earth Gold Limited
President and Chief Executive Officer
+64 4 903 4980