Greka Engineer. Share Discussion Threads

[hellisreal] 25/7/2011 17:43

Very pleased to see u are going well of late

[stu31] 23/6/2011 15:40

From Resource World magazine June 2011

New Zealand is often associated with
sheep and kiwi fruit. Driving along most
roadways affords endless pastoral views of
sheep grazing in green, gently rolling hills.
Agriculture is New Zealand's main industry
and accounts for most of the country's
exports. But there is mining going on in
New Zealand, sometimes in sheep pastures.
Mining is a $1.5 billion dollar industry
in New Zealand, producing aggregates,
limestone, coal, ironsand, fertilizer and
industrial minerals. Industrial rocks and
minerals are produced for local and export
markets and include bentonite, various
clays, diatomite, perlite, pumice, serpentine,
silica and zeolite.
New Zealand is also home to rich gold
deposits. In 2009, total New Zealand
gold production was 13.442 tonnes,
(474,153 oz), which today is worth CDN
$683,480,170, according to the most
recently available annual report by New
Zealand Crown Minerals
Glass Earth Gold Ltd. [GEL-TSXV;
NZAX] is the holder of one of the largest
gold exploration, land packages in New
Zealand, ~10,800 square kilometres of
properties on the North Island and on the
South Island. Simon Henderson, President
and CEO, invited Resource World magazine
to New Zealand to visit Glass Earth's projects
and hear about recent developments.
Prior to the economic downturn, the
company was busy unravelling the geology
of their large land package, and had been
doing so since 2006. Glass Earth employs
a scientific, detail oriented, exploration
strategy using the newest available technology,
implemented by a carefully chosen
exploration team in order to explore large
prospective areas for big gold deposits.
Large amounts of data were gathered in
order to build a three dimensional model
of their claim geology. Glass Earth was the
first exploration company to use modern
geophysics in New Zealand, completing a
37,000 line-mile survey covering all targeted
areas.
The company also conducted ESCANs,
a ground based, 3D resistivity survey
method employing a grid of electrodes
that provides precise information about
the geology and mineralization below.
They acquired a geochemical data base
from Newmont Mining [NMC-TSX;
NEM-NYSE] who conducted an extensive
geochemical survey of the Otago region,
on the South Island; Newmont withdrew
from the area pending a sale of their Waihi
Mine (circa 1995). Once all of the data was
compiled, the company began the work
of identifying and exploring the targets
with the most potential. But, the economic
downturn, in 2008, impacted the company's
plans.
The economic storm of 2008 forced
many junior explorers out of business. Some exploration companies, like Glass Earth, developed a plan to successfully survive the economic storm and lived to explore another day. Simon Henderson, President of Glass Earth, made some tough choices. He streamlined his operations, ceased expensive exploration diamond drilling and focused on maintaining the company's land package and keeping the claims permitted. To do this, the company had to generate revenue. The placer/alluvial
deposits in the Otago Region provided the company with what they needed.
SOUTH ISLAND
The Otago Schist is a major feature of New Zealand's South Island: it is crossed by numerous, long, narrow structural zones that formed in the latter stages of metamorphism and subsequent uplift of the metamorphic belt in the Mesozoic Era. Shears developed along weaknesses, where pressure caused the land to fold and quartz veins developed where gold precipitated.
Gold, because of its weight, moved lower as the folded structures were eroded by water. As a result there is gold in the valleys below the Dunstan, Raggedy and Rough Ridge Ranges, an area about 30 km wide between Dunedin and Queenstown.
Glass Earth is currently producing gold from its Gunclub Project, a placer/alluvial deposit in the Ida Valley between the Raggedy and Rough Ridge Range. It's a shallow deposit holding from 1,000 to 2,000 oz. Though it is a relatively small deposit, the gold is recovered quickly and economically. The operation is worked by four men using three diggers, a truck and a trommel-based gold recovery unit (GRU). The project is worked systematically and reclamation is accomplished almost simultaneously
with gold recovery. Top soil is removed and stored nearby, one metre of overburden ground is then stripped and moved aside, the alluvial gravel is removed and placed into the trommel where it is washed, and the heavier, gold containing concentrate is collected in a trap under the trommel. The concentrate is removed and taken to be processed on a shaking table, a mechanical process similar to panning. Using this method, Gunclub is producing approximately 100 oz of gold per month.
Dunstan Mining Ltd., 50%-owned by Glass Earth, is the mining entity working the placer/alluvial deposits. In this way, the Gunclub Project produces 50 oz of gold for Glass Earth per month. By 2012, Glass Earth plans to have five or six alluvial deposits producing with Dunstan Mining. Besides the producing Gunclub Project, the company has two proven shallow deposits that are two months into the four-six month permitting process and they have 10 other shallow deposits to prove up. There are also three other medium-depth deposits, containing 5,000 to 10,000 oz ready for production. The company is three months into the four to six-month process of acquiring permitting for the three medium deposits. By 2012, Dunstan Mining/Glass Earth plans to be producing ~7,500 oz per year from its placer/alluvial deposits. The area is still under exploration and there is potential for high-grade deep deposits containing 50,000 to 250,000 oz.
NORTH ISLAND
Having weathered the economic storm, Glass Earth has returned to exploring its promising larger, hard rock targets. The company's perseverance has been rewarded with some impressive drill results. A May 12, 2011 press release includes drill results from the first of two recently completed holes at the WKP-West gold and silver project near Waihi, on the North Island. Highlights from drill hole WPK 27 include: 152.4 metres of 1.16 grams gold/tonne and 2.2 grams silver/tonne, including 1.4 metres of 30.7 gold grams/tonne and 77.7 silver grams/tonne.
WKP WEST PROJECT
The WKP West Project is a Glass Earth (35%); Newmont Mining (65%) joint venture
10 km from Newmont's 10 million ounce Martha Mine at its Waihi gold operation,
on the North Island, that produces ~140,000 oz of gold per year. Drilling by Newmont, around the Martha Mine itself, is being done to determine the strike extensions of the gold vein systems, which Glass Earth considers as having the potential
to extend on to another of Glass Earth's permits, adjacent to the mine. Newmont has the mill capacity to handle any additional
processing from the Glass Earth/Newmont JV projects.
Regarding WKP West, Rick Streiff, Senior Exploration Geologist with Newmont Mining told Resource World, "Things are going very well and we are looking forward to a third round of drilling.
We're pretty enthused and excited." Henderson added, "We have good high grades and broad low grade zones." Rick summed up the situation, saying. "What all this is telling us is that, this is a big system." The WKP prospect is a 2 km mineralized alteration zone; the epithermal
system has characteristics similar to the Martha/Waihi system. The WKP West Zone is ~ 180 metres wide with strike continuity
of over 600 metres; strike length remains open.
The 2011 drilling followed up a 2010 program at WKP-West where encouraging results included the following highlights: hole WKP 24 intersected 156.1 metres of 1.6 grams gold/tonne and 2.6 grams silver/tonne; hole WKP 25 (collared from the same drill pad) intersected 15 metres of 9.3 grams gold/tonne and 12.8 grams silver/tonne; hole WKP 26 intersected 178 metres of 1.05 grams gold/tonne and 3.0 grams silver/tonne.
The historic Golden Cross Mine is 5 km from the project. It was mined first from 1895 to the early 1900s and again from 1991 to 1998; 723,116 oz gold were extracted from the modern mine.
Streiff said resistivity surveys are working
well for them and are "defining zones quite nicely" and recent ground based CSAMT resistivity surveying has identified
an adjacent area of interest. Glass Earth and Newmont are also advancing JV exploration on prospects in the wider Hauraki region.
MUIRS PROJECT
Glass Earth's 100%-owned Muirs prospect is an epithermal quartz vein system, similar
to that at Newmont's nearby Martha Mine. Drilling has been done in the Muirs Reef and the Massey Reef zones on the property in late 2010 and the company has just finished a five drill hole program on the prospect to test the system to the east and west. A step-out drill program is planned for this year which will contribute
to a NI 43-101 report for the resources at Muirs. The system has a non-compliant NI 43-101 historical resource of ~390,000 oz of gold at 1.5 grams gold/tonne, but has only been drilled to 70 metres and remains open along strike and at depth; there is also potential for resources on parallel veins. The company has recently completed a trenching program and is awaiting assay results from 100 rock samples.
An independent report on the Muirs property, commissioned by Glass Earth, was prepared by Peter Church, RDCL, a geologist with 20 years experience. The report, based on data collected, concluded that the Muirs Massey mineral system has the potential to host significant economic mineralization.
Having steered Glass Earth safely through difficult economic times, Henderson and his team have positioned the company to benefit from higher gold prices while following up on some exceptional
drill results. Glass Earth Gold has 60,010,025 shares outstanding.

[stu31] 23/6/2011 15:22

2011 so far... a quick update from the CEO

2011 has been an exciting year so far for Glass Earth Gold.

Thanks to strong investor support and an energetic team we've moved on from "surviving the recession" and during the Southern summer jump-started drilling programmes on three fronts, with very promising progress so far.

Drilling is progressing at the WKP West, Muirs Reef and Serpentine prospects, and new targets are being assessed across the country. Our technical team has been expanded to ten with two geologists and two science technicians joining us, and they are working hard to refine and enhance our projects.

This unrelenting focus on groundwork has had the side effect of slowing down information releases, but this will be corrected once results on all three drilling programmes are available.

We are conscious of the thirst for more market information and are now working to meet this demand. We are refreshing our website at glassearthgold.com, and later this month will take our news to the market with an investor relations tour of North America and Europe. It is now a key priority for us that the investment community knows the progress we are making.

The most exciting news of the year so far is results from drillhole WKP 27 confirming the WKP West zone's gold-bearing potential (see Glass Earth Gold news release on 12 May). This joint-venture drilling with Newmont began last year and the five holes drilled so far which have intersected significant mineralisation and confirmed our own science-driven exploration.

We've been very pleased to see such consistent and significant results from each of the drill holes, and the excitement is shared by our joint venture partner, Newmont. Results from further step-out holes WKP 28 and 29 are eagerly anticipated with further drilling planned through the year.

All of this work confirms the WKP West prospect is growing in significance and potential.

Thanks to strong market support through 2010 we are fortunate to be in a position to target, explore and drill our targets this year without financial constraints.

We place strong importance on maximising the investment shareholders have made in our exploration work. A key feature of this is our resolve to earn revenue from placer/alluvial operations (see Glass Earth Gold news release on April 29).

Increasing revenue by producing gold has rewarded us with a significantly lower loss for the first quarter. Further mining growth throughout the year will generate more cash, and we will soon have more news on expanding this work.

All in all - we are positive, busy, and excited about the next steps. Make sure you look out for more news to come, and let us know if you have any questions or comments.

Simon Henderson

CEO

Glass Earth Gold Limited

[stu31] 31/5/2011 21:52

For gold miners, success has been anything but fun lately.

Everything these companies prayed for a decade ago, they got. Collapsing global currencies. A gold pricing rising from US$250 an ounce to more than US$1,500. Incredible earnings and cash flow growth. It played out exactly as the gold bugs said it would, and then some.

Yet you won't find many gold CEOs with smiles on their faces these days, because over the last 12 to 18 months, their share prices have barely responded to the accelerating gold price.


Barrick Gold Corp.'s 12-month return (including dividends) is about 5%. Newmont Mining Corp.'s is 2.6%. Goldcorp Inc.'s is 8.15%. Kinross Gold Corp.'s is minus 17%.

The story has not been much better of late for the junior and intermediate companies. While their shares did very well in 2009 and 2010, they have had a rough ride the last couple of months.

The weak stock prices, which seem to have little to do with the actual operations of the miners, has left investors wondering if and when these companies will start to perform in line with the commodity they produce.

The overwhelming theme for gold equities in recent months is that as earnings and cash flow go up, trading multiples go down. Charles Oliver, who co-manages a gold fund at Sprott Asset Management, says that Barrick and Newmont traded at 40 or 50 times earnings a decade ago (though they had much less in the way of earnings in those days). Today, Barrick's price-earnings multiple is a little over nine times, he says.

A key difference between then and now is that investors who want bullion exposure have the option of going to exchange-traded funds. Many of them have taken that path, getting exposure to gold with none of the risk of having to operate mines. While that has helped mining companies by boosting the price of gold, it has taken some investor capital out their stocks.

"That's a process that has gone on for six years and I think still has some impact on the markets. Though at this point, anyone who wanted to own gold ETFs should have taken a position," Mr. Oliver says.

The ETF proliferation cannot be held entirely to blame, as the underpeformance of gold equities is a more recent event. From 2002 to around 2007, the equities outperformed bullion (though there are exceptions, such as Barrick).

The relationship got disrupted when financial markets went haywire in 2008, and the equities have been mostly disappointing since then.

So what happened? When analysts talk about why gold equities underperform, they often cite lack of production growth, execution problems, political risk and a host of other reasons. But none of those factors adequately explain why the whole sector has done so poorly.

Some industry sources have another theory: that the analysts themselves are pricing in numbers that are much too low when they calculate what these companies are worth. While most analysts are using a gold price of roughly US$1,500 an ounce for 2011, their long-term targets are closer to US$1,000, which affects their earnings estimates.

"I think what happens is that people rely on net asset value [to value gold companies], and the calculations don't seem to rise so dramatically because the long-term gold price [used by analysts] is at a deep discount to the current price," says Peter Marrone, chief executive of Yamana Gold Inc. "So I think there's a tendency to say, 'I'm not taking advantage of the equities because they're not reflecting the current gold price."

If gold miners want to convince investors that their stocks are a better investment than bullion, they have one obvious ace in the hole: yield, which you can't get from physical gold.

Every significant gold producer in the world has either introduced or increased its dividend in the past year. It is genuinely the first time in history that these companies, which made no money for decades, have spare cash to burn. Their theory was that paying dividends would suddenly make gold stocks appealing to value and income investors, but experts say that it still has not happened to a significant degree.

Part of the problem is that the yields are still very puny – 1% is well above average for the sector. And that isn't good enough to attract new investors, Mr. Marrone says.

After listening to the Street, he decided that a 1.5% yield represents a threshold at which income-based investors will start to take a gold company seriously. Yamana thus hiked its dividend 50% earlier this month to get it into that range.

As gold miners continue to accumulate absurd amounts of cash, Yamana's rivals will also be hiking dividends in the months to come. The question then becomes, will that be enough to convince investors to buy these stocks?

The views from inside the industry are mixed. Ian Telfer, the chairman of Goldcorp Inc., says that one of the unique things about commodity stocks is that a dividend or cheap valuation is not necessarily enough to make fund managers jump in. Ultimately, they're only going to do so if they believe the price of the commodity is going to go up.

And that might explain in part why the gold stocks are underperforming. When gold was trading at US$250 a decade ago, investors could imagine the price doubling to US$500, which made the potential earnings growth very attractive. Today, it is probably a little tougher for people to get their head around a price of US$3,000. Thus, multiples can decrease even as earnings dramatically increase.

"People pay more for these stocks when they see the chance of a big run-up. Once that run-up happens, there's going to be fewer people seeing that high upside ahead of them," Mr. Telfer says, though he himself believes that the price will move far higher than it is now.

History shows that these trends do not last forever, and at some point the tide will change and the equities will start to outpace gold again. But it seems that some catalyst is going to be required for that to happen.

Ironically, many experts think that catalyst might be a cool-down in the price of gold itself. If owning bullion suddenly becomes a little less attractive and investors want to put money to work elsewhere, Barrick's nine times earnings multiple might catch some attention.

"I've always believed that as the metal price continues to appreciate, there's a higher probability that people will gravitate to the metal than the equities. But as the gold price stabilizes, that's when the equities begin to show cash flow, earnings, and improvements in margins, and the result is that people begin to invest in the equities," Mr. Marrone says.

The gold miners can only hope he's right, or the not-so-good good times could continue for a while.

[e-mail]

[stu31] 25/5/2011 20:17

Glass Earth loses $61,000 in Q1 2011

2011-05-24 10:25 ET - News Release


Mr. Simon Henderson reports

GLASS EARTH GOLD LIMITED: FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION & ANALYSIS FOR THE FIRST QUARTER ENDED 31 MARCH 2011

Glass Earth Gold Ltd. has filed its March 31, 2011, first quarter financial statements and associated management's discussion and analysis report pertaining to that period with regulatory authorities.

Glass Earth Gold's determination to create revenue from its placer operations to support its objectives as a hard-rock gold explorer in New Zealand is demonstrated in a significantly lower loss for the quarter ($61,000 versus $193,000 in 2010), principally due to increased revenue from placer mining operations. Placer mining expansion in 2011 should see a significant increase in both gross and net revenue. The company's cash position as at March 31, 2011, was $3,801,000.

This positions the company well as it continues to report encouraging results from its WKP West gold prospect in the Hauraki region (reported May 12, 2011).

Glass Earth is a gold exploration company and therefore classified as being at the development stage, as it currently has modest mining income. With all general and administration expenses being expensed, Glass Earth records losses each quarter/year arising from the expensing of these cash operating costs as well as other non-cash expense items.


FINANCIAL STATEMENT

3 months ended 3 months ended
March 31, 2011 March 31, 2010

Revenue 251,000 100,000
(Cost) of revenue (122,000) (94,000)

Gross profit 129,000 6,000

Cash operating costs
General & admin. 203,000 206,000
Finance costs (gain) (13,000) (7,000)
190,000 199,000
Non-cash expenses
Write down mineral properties - -
Stock-based compensation - -
Income tax expense/(benefit) --
deferred - -

Net loss for the period 61,000 193,000


Operational activities

Field operations concentrated on the testing of Glass Earth's two most advanced prospects, WKP West (65 per cent Newmont Mining/35 per cent GEG; Newmont managed) and Muirs Reefs (100 per cent GEG) in the North Island, and drilling of the Serpentine prospect in the South Island. Encouraging assay results for drill hole WKP 27 were released May 12, 2011, with assay results awaited in respect of WKP 28 and two further drill holes into serpentine.

In addition, metallurgical testing and test plant design on the Ophir project (50 per cent GEG/50 per cent Ophir Gold) are nearing completion.

Expansion of alluvial/placer gold mining in the central Otago region is a strong focus as current mining operations bed down.

[stu31] 12/5/2011 15:08

About Glass Earth Gold Limited
Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a
land position of approximately 10,800 square kilometres in the North and South Islands.
In the North Island, exploration efforts are focused on large epithermal gold systems in the
Hauraki/Central Volcanic Region. This Region is host to the 10 million ounce Waihi Gold
Mine, (Newmont Mining).

Hauraki Region – Glass Earth occupies a significant ground position around the
Newmont's currently active Waihi gold operations; The Newmont-Glass Earth Waihi
West JV (Newmont earning 65%) and Hauraki JV (North and Central Areas -
65/35) are currently being explored and managed by Newmont.
Central Volcanic Region – Glass Earth has defined several significant epithermal
gold targets in this region including the Muirs Reef project (Mamaku district).
In the South Island, exploration efforts are focused on the Otago Region for
mesothermal "Macraes-style" gold targets and alluvial gold.
Otago Region – The drilling of highly ranked Serpentine and Game Hen gold
targets has commenced.
Two alluvial mining operations continue into the 2011 year, coupled with an
acceleration of alluvial exploration and resource definition; Glass Earth / Dunstan
Mining (placer mining 50/50 partner) plan to treble gold output in 2011.

[stu31] 12/5/2011 15:05

another excellent drill hole at WKP

Wellington, New Zealand, Thursday, 12 May 2011
GLASS EARTH GOLD ANNOUNCES SIGNIFICANT HIGH GRADE GOLD
RESULTS FROM 'WKP-WEST', WAIHI, NEW ZEALAND.
DDH WKP 27 intersected 1.4 m @ 30.7 g/t Au and 77.7 g/t Ag within
152.4m @ 1.16 g/t Au and 2.22 g/t Ag.
Glass Earth Gold Limited (TSXV-GEL; NZAX-GEL) ("Glass Earth") reports completion of
a further two drill holes on the WKP West gold – silver project near Waihi, New Zealand.
Results from the first hole (WKP27) are tabled below with the results from diamond drill hole
("DDH") WKP 28 pending. Drill testing is planned on other targets during the course of
2011 as influenced by successive results (the WKP Gold-Silver Prospect is a joint venture
with Newmont Mining - Newmont 65%, Glass Earth 35%).
DDH WKP 27, a two hundred metre step-out southwest confirms the previous significant
intersections of gold mineralisation consistently greater than 150m, with narrow high-grade
zones in the one ounce to two ounce gold range (see 25th August 2010 news release).
Simon Henderson, President and CEO commented that "The success of the 2010 drilling
results on holes WKP 24, 25 and 26 demanded further drilling examination. Both
Newmont and Glass Earth have been very keen to press forward with additional
drilling and we are confident that this exploration phase will provide further
substantial insight into the characteristics of WKP West and the overall WKP
prospect."
The newest programme of diamond drill holes of approximately 400m - 500m length tested
the southerly extensions of the WKP West mineralised zone.
Hole No From To Interval m Gold g/t Silver g/t
WPK 27 129 281.4 152.4 @ 1.16 2.2
including 181.4 182.8 1.4 @ 30.7 77.7
197.8 198.8 1 @ 7.61 11.4
220.7 221.5 0.8 @ 6.4 9.1
223.2 224.3 1.1 @ 10.2 7.0
240 241.1 1.1 @ 11.0 5.7
257.2 258.2 1 @ 7.61 4.60
272 273 1 @ 8.33 6.70
An adjacent area of interest identified through recent ground based CSAMT resistivity
surveying is also targeted.
2
Location and History
The WKP prospect is a 2 km mineralised alteration zone, just 10 km from Newmont's
currently active Waihi gold operations and 5 km northeast of the Golden Cross deposit
(634,000 oz gold production in the 1990's). The WKP epithermal system has
magnetic/alteration characteristics similar to the Waihi area and has open-along-strike
potential for several kilometres south-westward. The WKP West zone currently outlines an
area approximately 180 m wide with a strike continuity of over 600 m.
2010 Drilling Results were:
WKP 24 intersected:
Hole No From To Interval m Gold g/t Silver g/t
WPK 24 125.9 282 156.1 @ 1.6 2.6
including 268.2 282 13.8 @ 6.6 3
207.7 209.3 1.6 @ 30.2 44 *within following interval
207 210 3 @ 15.6 23.2
262.5 263.5 1 @ 16 9.8
251 253 2 @ 6.2 2.9
252 253 1 @ 11.3 5.1
WKP 25 collared from the same drill pad intersected:
Hole No From To Interval m Gold g/t Silver g/t
WKP 25 221 236 15 @ 9.3 12.8
including 225 226.8 1.8 @ 64.3 80.3
235 236 1 @ 9.5 19.3
Hole No From To Interval m Gold g/t Silver g/t
WPK 26 115 293 178 @ 1.05 3.0
including 141 205 64 @ 2.0 2.6
141 142 1.0 @ 19.1 71
167.2 168 0.8 @ 24.5 >100
199.9 200.3 0.4 @ 12.3 24
204 205 1.0 @ 17.5 24
The remainder of the WKP 26 hole contained many narrow quartz veins. The
entire zone from just above the quartz vein at 115 m to the end of the hole at 552.1 m
averaged 436.1 m @ 0.50 g/t Au, 1.8 g/t Ag.

[stu31] 09/5/2011 16:20

Glass Earth loses $1.46-million in fiscal 2010

2011-04-29 11:41 ET - News Release


Mr. Simon Henderson reports

GLASS EARTH GOLD LIMITED: FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION & ANALYSIS FOR THE YEAR ENDED 31 DECEMBER 2010

Glass Earth Gold Ltd. has filed its Dec. 31, 2010, year-end financial statements and associated management's discussion and analysis (MD&A) report pertaining to that period with appropriate regulatory authorities.

As advised in Stockwatch on April 12, 2011, Glass Earth has adopted international financial reporting standards (IFRS) early, effective for fiscal 2010. There were no significant differences between Canadian generally accepted accounting principles and New Zealand IFRS or IFRS, given the nature of the company's operations. Earlier this week, Glass Earth refiled its restated unaudited interim financial statements and associated MD&A for each of the three-, six- and nine-month periods of 2010 in accordance with IFRS.

During 2010, the company announced the completion of two fundraising exercises which raised $6.2-million (before issuance costs). As at Dec. 31, 2010, the company held $3.9-million in cash with a further $500,000 received from completion of fundraising in early January, 2011. Together with increasing placer-mining income, this places Glass Earth in a strong position for drilling activities in 2011.

The company consolidated its placer activities by acquiring 50 per cent of its joint-venture party's mining company (and related placer-mining equipment).

The company recorded a net loss for 2010 totalling $1,467,000 (2009 -- $2,675,000). Revenue from placer-mining activities made its first contribution with exploration and development costs associated with the establishment of these operations amortized completely against revenue as a conservative approach (cash generation totalled $357,000). Placer-mining expansion in 2011 should see a significant increase in both gross and net revenue.

Glass Earth is a gold exploration company and therefore classified as being at the development stage, as it currently has modest mining income. With all general and administration expenses being expensed, Glass Earth currently records losses each year arising from the expensing of these cash operating costs as well as other non-cash expense items.

The net loss for the year can include significant non-cash items.


GLASS EARTH FINANCIAL RESULTS
12 months ended Dec. 31,
2010 2009

Revenue $ 584,000 $ 39,000
Cost of revenue (381,000) (2,000)
Gross profit 203,000 37,000
Cash operating costs
Operating loss 933,000 1,030,000
Foreign exchange (gain) (27,000) (230,000)
906,000 800,000
Non-cash expenses
Writedown mineral properties 574,000 2,364,000
Stock-based compensation 178,000 -
Income-tax expense/(benefit) -- deferred 12,000 (489,000)
764,000 1,875,000
Net loss for the year 1,467,000 2,675,000


Operational activities

Field operations concentrated on the testing of the company's two most advanced prospects, WKP West (65 per cent Newmont Mining/35 per cent Glass Earth; Newmont is manager) and Muirs Reefs (100 per cent Glass Earth) in the North Island, and drilling of the Serpentine project in the South Island.

In addition, metallurgical testing and test plant design on the Ophir project (50 per cent Glass Earth/50 per cent Ophir Gold) is nearing completion.

Expansion of alluvial/placer-gold mining in the central Otago region is a strong focus as current mining operations bed down.

[stu31] 06/4/2011 22:51

I am now reliably informed that the company are drilling on all 3 flagship projects. 4 holes have been drilled at Muirs with a 5th underway. WKP drilling started a couple of weeks ago. Drilling at Serpentine started a few days ago as informed by the company.

[stu31] 18/1/2011 15:33

Glass Earth completes $4.06-million private placement

2011-01-18 10:14 ET - News Release

Mr. Simon Henderson reports

GLASS EARTH GOLD ANNOUNCES THE CLOSING OF FINAL TRANCHES OF C$4 MILLION PRIVATE PLACEMENT

Glass Earth Gold Ltd. has completed the second and third tranches of a previously announced Private Placement financing for gross proceeds of C$1,061,600. In addition, Glass Earth has paid certain finders fees in connection with the completion of the C$3,004,890 first tranche of the Private Placement announced December 28, 2010.

Second and Third Tranches

The second tranche consisted of 3,255,000 Units at a price of C$0.30 per Unit. 1,760,000 Units were sold on a brokered basis through D&D Securities Inc. (the "Agent'") and the balance on a non-brokered basis. The third tranche consisted of 283,666 Units at a price of C$0.30 per Unit. 166,666 Units were sold on a brokered basis through the Agent and the balance on a non-brokered basis.

Each Unit consists of one common share and one half of a common share purchase Warrant. Each whole Warrant entitles the holder to purchase one common share at a price of C$0.50 per share, exercisable for a period of 24 months from the date of issuance.

[stu31] 11/1/2011 17:55

latest is WKP will be drilled in January after Newmont had some permitting problems

[stu31] 29/12/2010 15:40

Glass Earth closes $3-million first tranche placement

2010-12-29 07:28 ET - News Release


Mr. Simon Henderson reports

GLASS EARTH CLOSES FIRST TRANCHE OF $4 MILLION PLACEMENT; ADDS PROGRAM TO IMPROVE LIQUIDITY

Glass Earth Gold Ltd. has completed the non-brokered portion of its previously announced private placement. A total of 10,016,299 units has been sold at a price of 30 cents per unit for gross proceeds of $3,004,890.

Each unit comprises one common share and one-half of a common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of 50 cents per share, exercisable for a period of 24 months from the date of issuance. The units are subject to a four-month hold period expiring on April 24, 2011.

The company anticipates closing the brokered portion of the private placement in early January.

The proceeds of this financing will be used for mineral exploration and general working capital purposes.

[stu31] 25/11/2010 23:21

Glass Earth resumes drilling at Muirs

2010-11-25 09:44 ET - News Release


Mr. Simon Henderson reports

GLASS EARTH RECOMMENCES DRILLING AT MUIRS REEF

Glass Earth Gold Ltd. has commenced a multihole diamond and reverse-circulation drilling campaign at its Muirs gold prospect in the North Island, New Zealand.

Muirs Reefs gold property (GEL 100 per cent)

Diamond drilling has recommenced on the Muirs Reefs gold prospect with a large RC drilling rig also mobilized to arrive shortly. This campaign is designed to test the extent of the known Muirs/Massey Reef gold system, both southward and at depth, and to test the exciting potential of the new east and west resistors interpreted as new vein systems.

The drilling program consists of five deep, angled drill holes, drilling a section across the system to a depth of approximately 250 to 300 metres (approximately 2,000 m in total).

A summary of previously released information is provided below in order to background this prospect.

Location and history

The Muirs Reef gold system lies 62 kilometres southeast of the Martha gold mine (Newmont operation) at the southern extremity of the Hauraki goldfield in the Western Bay of Plenty. The property is host to a former-producing gold mine discovered in 1895. Gold was mined from two quartz reefs, Muirs and Masseys, in a shallow open pit and from three underground levels that achieved total production of 43,642 ounces gold circa 1930s.

Geological setting

The host andesitic flows and pyroclastics are the southernmost extension of the tertiary andesitic and rhyolite volcanism of the Hauraki goldfield. The veins represent a classic low-sulphidation epithermal (quartz adularia) gold-silver system with outcropping-banded and colloform-textured quartz veins, quartz breccia and vein swarms mapped up to 20 m wide in the historical open pit. The overall extent of the vein system is more than two kilometres along strike and over one kilometre wide. Geophysical mapping indicates the vein/alteration system to be significantly larger than this.

Quartz vein petrology indicates a high-level epithermal system with unconstrained depth potential.

Resistivity surveying

E-scan 3-D resistivity surveys over the Gibraltar and Otawa targets (respectively south and north of the historic Muirs Reef gold deposit), combined with surface mapping, trace the vein/breccia system for over 5,000 m, demonstrating that this exciting epithermal gold prospect conjoins into one large continuous alteration system over 5,000 m in length.

Recent electromagnetic electrical ground surveying confirms additional resistors indicative of new veins in the vicinity of Massey and Muirs quartz reef, and two potential new reef systems east and west of Muirs quartz reef. The new east and west resistors are of similar size and tenor of the Muirs veins (the subject of the historical production).

Rock-chip and soil geochemistry

On the east resistor, gold soil geochemistry is identified along several hundred metres (up to 458 parts per billion gold) while the west resistor has quartz vein float in the vicinity assaying up to 4.81 grams per tonne gold.

Drilling

Drilling undertaken by Glass Earth in 2008, provided evidence of a high-level epithermal gold system as indicated by the broad mineralized intersection in the first and second diamond drill holes.

The first diamond drill hole intersected 30 m at 1.2 g/t gold and six g/t silver, confirming a mineralized system to 75 m depth (reported in Stockwatch on Sept. 25, 2008).

The second diamond drill hole, drilled 80 m along section, intersected 16 m at 1.1 g/t Au and 3.5 g/t Ag, within a broad zone of 37 m at 0.8 g/t Au and 3.5 g/t Ag, confirming a mineralized system to 75 m depth (reported in Stockwatch on Nov. 27, 2008).

Additional gold-mineralized quartz veins, intersected either side of the broad intercept, indicate potential for a stockwork of veins between the Massey and Muirs vein systems. Three metres at 3.1 g/t Au and 1.9 g/t Ag intersected at the top of MSDDH-002 relates to this stockwork of veins apparent in resistivity mapping (350 m apart).

Significant legacy core intercepts include 20 m at 4.9 g/t Au, 20 m at 3.6 g/t Au, eight metres at 3.4 g/t Au, 22 m at 2.8 g/t Au, nine metres at 2.7 g/t Au and one metre at 358 g/t Au.

Qualified persons

Glass Earth's exploration program are carried out under the supervision of Glass Earth's president and chief executive officer, Simon Henderson, MSc, MAUSIMM, FSEG. Mr. Henderson meets the qualified-person requirements, as defined by National Instrument 43-101, with more than 30 years of experience in the gold mining and exploration industry.

[stu31] 27/10/2010 17:16

Hi OT

7500oz would be worth US$3m/£1.9m net to GEL at $1200 Au..the current market cap is c£9m so it is a not inconsiderable sum given their size..they are currently pocketing just over $1m at present AIUI..but bear in mind this is just from their minor placer operation and they have 3 major targets elsewhere. The presentation I just posted up shows the enormous potential here, it is worth a very close look imo. They are still in exploration mode elsewhere so no near-term production but I would draw your attention to WKP and the JV with Newmont who are operating the nearby Martha mine and particularly this comment:

•Mine life ~ 2013 new resources urgent

Newmont had already spent their allocated budget at WKP for 2010 but because of the excellent drill results announced recently at WKP 24,25,26 (see above) they went back to head office and were authorized to spend another $1m immediately..they can't hang about as their processing plant is currently working well under capacity..if WKP turns out to be a major discovery you can probably guess the rest

[on target] 27/10/2010 16:44

Nice thread stu31.

Recently opened an account with a broker that deals in Canadian stocks, so starting to have a look at a few prospects.

Re: this one,
7,500oz/annum production by 2012 doesn't seem to be setting their sights very high. Do they have any other near-term production on the horizon?

[stu31] 27/10/2010 16:40

Summary

•WKP West -Gold Discovery: 2 Drill rigs turning Nov –Dec 2010, Exciting potential.
•Muirs Reef: 390,000oz previously defined, potential in excess of 1 M oz gold. 1 drill rig beginning drill program mid October to confirm resource status as NI 43–101 compliant.
•Serpentine target: Drilling in early 2011, next large mesothermal gold discovery?
Gold productionof Placers generating G&A funding, expansion to 7,500 ounces / annum by 2012.
•Multiple Drill ProjectsCompany changing potential.

[stu31] 27/10/2010 16:39

Otago Region –Placer

•2 placer mining operations (McAdie: 100%, Earnscleugh: Leased GRU)3placer operations November 2010 expanding to 4 in 2011
•Gold production covering GEGLgeneral & administration expenses.
•Expanding placer mining operations, potential to produce 7,500 ounces / annum
•Operations managed by GEG's 50% placer mining partner Dunstan MiningFine

[stu31] 27/10/2010 16:37

Serpentine

Type: Mesothermal shear hosted gold target, 60 km from Macraes gold mine
Length: 12 km shear, interpreted from airborne geophysics contrast in resistivity and magnetics, with 4 km zone incorporating high grade gold rock chip/soil geochemistry
Width: Broad zone ~20 –30 m based on surface rock chips/ geochemistry containing multiple parallel features; anomalous gold in soils 2.5 km, peak 1.5 ppm Au
Depth: No previous drilling
Grade: Rock chips: multiple samples between 2 g/t –32 g/t Au
Potential: Significant large scale potential -~ 1M oz Au

Macraes Gold Mine
7M oz Au
(NZ's largest mesothermal shear hosted gold mine producing +200,000 oz gold, Oceana Gold)

[stu31] 27/10/2010 16:33

Muirs Reef-GEGL 100%
•390,000 ounces at 1.5 g/t (0-75m) –historical calculation
•Drilling for JORC/43-101 resource, commenced 15thOctober
•5 holes planned Oct –Dec 2010
•New potential east and western vein systems
•Additional Potential 75-200m depth

Historical Muirs Reef Gold deposit –42,000 oz Au
Quartz vein petrology indicates a high-level epithermal system open to depth
Initial mining ceased ~1930

Type:Large scale low sulphidation epithermal quartz vein system vis Waihi Gold Mine
Length:5 km; drilled in only two 300 m zones
Width:20–30 m; bonanza grades 1–2m wide
Depth:drilled to 75 m with significant depth potential > 200 m
Historical production:43,000 oz Au @ 16 g/t Au
Resources:390,000 oz Au @ 1.5 g/t gold; indicated resource (0.5g/t cutoff) 0-75m depth
Potential: + 1 M oz (extrapolation to 200m depth

Drilling commenced
•Test NEW Eastern and Western Vein
•Test +500m vein extensionsConsolidate resources to JORC / 43-101 status

[stu31] 27/10/2010 16:26

WKP West -Newmont 65/35 JV
•$1 million follow-up drill programme commencing November 2010
•2 Rigs drilling to complete by Christmas
•Potential 3 -5 Million ounces gold
•65% Newmont funded

Key Characteristics
Type: Epithermal Quartz vein system vis Martha Gold Mine (Newmont owned / operated ~ 10M oz gold). Geological Resource > 50Mt @ 0.9g/t Au (1.4Moz)
Length: 900m sheeted vein system within broader 2km mineralized alteration zone
Width: 150m wide system with banded quartz veining
Depth:Drilled to over 300m. Mineralization unconstrained with 15g/t gold at 4.7m, and 48g/t at 388m
Grade: Multiple intercepts of between 156m @ 1.6 g/t Au and 1.8m @ 61.4g/t gold from first round of drilling
Region: 6km from Golden Cross, 10km from Martha Gold Mine, 18 km from Karangahake
Potential: Newmont Global Resource Estimate 1.4 M oz at 0.9g/t Au, Potential 3-5 m oz gold

WKP Previous Exploration –WKP Gorge

WKP –Newmont JV
10km north of the large Martha Hill Gold Mine, this target is being explored on behalf of Glass Earth by Newmont Mining Corp.

•Extensive exploration 1978-1993.
•Targeting stockwork vein zone in WKP Gorge.
•5500m previous drilling.
•Estimated resource;
50Mt @ 0.9g/t Au (1.4Moz).

KKP West

Further work
•2 Diamond Rigs drilling, over 600m horizontal to a depth of 500m vertical ($1M expenditure by end of 2010) Inferred resources defined
•3000m CSAMT resistivity lines to extend potential north and south (commenced October 2010)
•Metallurgy / Petrology (extensive adularia/ electrum/argentite –classic low sulphidation system)

Newmont's Martha Gold Mine, Waihi

•Production of 160,000 oz Au/annum since 1987
•10 Million oz Au in production and resources
•Open pit and underground developments
•Mine life ~ 2013 new resources urgent
•Classic low sulphidation epithermal vein system

Newmont Waihi West JV (mine extensions) 65/35%

•JV permit lies adjacent to Waihi open pit and new underground developments
•Potential extensions to the Amaranth, Union, Trio lodes enter directly into the EP
•Additional new deep high grade gold discovery between the Union/Amaranth/Trio system has potential southerly extrapolation directly into EP
•Newmont to spend C$5.4 M to earn 65%

[stu31] 27/10/2010 16:17

highlights from recent presentation:

Assets
Sustainable
•Producing gold from placer mining
•Gold production covering G&A expenses
Underpinning Value
•Key ground positions around major producing mines Martha Hill (Newmont) & Macraes (Oceana Gold)
Management
•Experienced, Proven management team, track record of successful discovery
Low Sovereign Risk
•Stable government and fiscal regime.
•Strong Technical and People Resources

Upside Potential
Major Gold discovery –WKP WEST
•WKP24 -156m @ 1.6g/t Au -(incl. 13.8m @ 6.6g/t and 1.6m @ 30.2g/t Au)
•WKP 25 -15m @ 9.3g/t Au (incl. 1.8m @ 61.4g/t)
•WKP 26 -64m @ 2.0g/t Au & 2.6g/t Ag
•3 Diamond holes, 3 economic intersections!
•$1 million follow up drilling programmeNov / Dec 2010
Major drilling development at Muirs
•390,000oz global resource
•Muirs Reef drilling programme commenced 15thOct 2010
Expanding annual placer production to 7,500 oz in 2012

[stu31] 25/10/2010 23:30

company presenting in London this week..probably explains todays rise as word gets out (up 35%)

[stu31] 13/10/2010 18:44

volume picking up over the last month..buys appearing at 27c