Z,
A chart!
After all your FA and you play TA also.
Black white or grey, opposites attract.
TA suggests that GEL.v could have just started up from an EWT minor 2.
A low volume chart, prone to error.
Something to lighten my day.
V.
Printable View
Cheers Vtrader. Only 5 trading days left in NZ before the options are due. Will GEL roll out some news before then? I wonder. It's a busy time of year for me, so I won't be posting too much detail for 2-3 weeks.
First quarter results are out, had a quick look and nothing too surprising, although the latest drill at Muirs will be interesting when the assay is reported.
http://tmx.quotemedia.com/article.ph...&qm_symbol=GEL
By midday 31/5/2012 NZ time the MD&A full version is not available on the web, at the GEL website or on SEDAR. The map (pdf) of the permit areas that links to the news release is old, it shows a permit around the Talisman Mine, for example, and that area is now dropped, Renison Mining are looking to take it on. So a 50% mark for accuracy and speed of this update, to GEL. ("Achieved" is the current mantra I believe).
The full MD&A should give a lot more detail, might even talk a bit about what has happened since 31 March.
This third quarter coming up could be the most important GEL has seen, regarding cashflow from operations. It could be very good. Pity we seem to be three months behind on information.
The SEDAR site has been updated to show 30th March data within the last 2-3 hours. So here is a cut-down version of the MD&A for Q1, and again it makes interesting reading.
Quote:
Q1 2012 EXPLORATIONACTIVITY (Otago)
Quote:
A network of gold bearing quartz veins has been discovered at new prospect Garibaldi. 2011 mapping and sampling at SparrowHawk South revealed anomalous gold and lead to the identification of a quartz vein system at Garibaldi. A trenching program commenced to follow up on positive rock chip geochemistry associated with quartz vein T4 (up to 8.73 gms/t gold). Eight trenches have been completed exposing a stock work of quartz veins, up to 1.5min width. 172 rock chip samples have been collected from the trenches; initial assay results indicate grades up to 16.1 gms/t gold.
So don't expect too much placer cash from the second quarter either, as a leased GRU is only just now running at Drybread (is this GRU#3, the brown primer unit pictured on the GEL pages?) and GRU#1 is getting cranked up in June. But from then on more money should be flowing in.Quote:
A first pass program of stream sediment sampling was started in the Kakanui Range (north-east Otago). 84 samples have been collected to date with 250 remaining.
A full technical review of Hindon and Game Hen 2011 drill results(and all other exploration data) was conducted. This prospectivity review concluded that the late-stage fault hosted gold mineralization at these sites occurs in narrow zones, of low grade and with poor continuity. It was deemed that further exploration work on these prospects is not warranted and the permits have been relinquished and the associated accumulated exploration costs written off.
Q1 2012 EXPLORATIONACTIVITY (Placer)
In late March 2012, GlassEarth took full ownership of its placer gold production joint venture. Settlement of the transactions took place onMarch 19, 2012. Taking full control of placer mining activities should enable the Company to significantly accelerate and increase gold production capacity.
Glass Earth is continuing with gold production at the "Gunclub" mining operation while preparing for two additional operations to commence nearby in New Zealand's Otago region. Site preparation has been completed at the "Drybread" mine site, with the second placer Gold Recovery Unit (“GRU”) mining operation being commissioned in late May 2012.
The Company is also refurbishing and upgrading its GRU #1, which is expected to be installed and running as another operationat Drybread by June 2012.
A drill program was completed at Waikaia from the 6th to the 23rd March. A total of 34 holes were drilled. Three samples returned between 500 – 650 mg/m3 and one sample of 15,300 mg/m3 gold.
A second phase drill program was completed at Shepherds Flat with the completion of 45 drill holes and a total of 558m drilled. The average wash grade was 452 mg/m3 at a depth of 14m with an average thickness of 4.5m.
Q1 2012 EXPLORATIONACTIVITY (WKP)
No drilling occurred at WKP in Q1 2012. A 5,500m drill program commenced in April 2012.
Q1 2012 EXPLORATIONACTIVITY (Muirs)
The seventeen hole Muirs Reef drill programme continued at the Massey Reed in Q1 2012.
MSDDH10 reached end of hole at 127.9m PQ core on the 5th March. The hole intersected a wide zone of weathered and altered coarse grained andesite with zones of quartz veining from 55m to 120m. This includes individual quartz veins up to 1.5mwide and areas of stockwork veining. Results from MSDDH10 include 2m at 2.6 g/t Au.
MSDDH11 reached 189.5m PQ core by the 17th March. The hole was terminated because of decreasing intensity of alteration. Results awaited.
MSDDH12 reached 49m by the end of the quarter with several metre scale quartz veins between 0 -49m within a zone of intensely altered andesite with stockwork quartz veining. Results awaited.
A review group has been selected to analyze and re-rank the Hauraki and CVR targets in Q3 2012.
Exploration Expenditures
Mineral exploration costs form the bulk of the Company’s expenditures together with placer mining development costs. Exploration activities in Q4 included drilling at Muirs and various placer targets – some exploration, some infill drilling to improve confidence. Glass Earth contributes its 35% share to exploration costs in the Hauraki JV with Newmont. Narrative descriptions of exploration activities for the year(and prior years) are set out in the previous sections.
Exploration permits at Hindon and Game Hen (Otago) were relinquished during the period and expenditures associated with them have been written off during the period.
Mining operations suffered somewhat due to attention being diverted to the rearrangement ofownership of the placer JV, with Glass Earth acquiring full control in late March 2012.
Mining at Gunclub (Gold Recovery Unit #2) continued but mining at Drybread was suspended by mutual agreement in January. A reconfigured leased GRU suitable for fine gold recovery is being commissioned at Drybread in late May. Gold Recovery Unit #1 is nearing completion of its major refurbishment and is planned to also commence mining at Drybread in June2012.
Note (to costs)
1. General and Administration costs include accounting services ($34,000), insurance ($22,000) and New Zealand office costs ($25,000).
2. Professional fees are audit fees and legal fees incurred during the period.
3. Net salaries after exploration recharges are principally composed of the costs of the full time Chief Financial Officer, most of the costs of the Data/IT manager, and 25% of the Chief Executive Officer’s salary (to reflect the split between exploration activities and the other corporate based work that he undertakes).
4. The Company is developing an improved Investor Relations program, which covers the Canadian and European investor base (including London). The objective is to ensure that the market is fully informed of Glass Earth’s progress as it enters an exciting time in itsd evelopment path. Increased expenditure on personal presentations by the CEO and internet based dissemination of information, as assisted by IR professionals in Canada and London are budgeted to continue but at a lower level.
5. An earlier AGM has pulled share registry costs associated with that forward and the number of press releases has increased relatively.
6. The external legal fees and taxation advice costs related to the acquisition of placer activities.
Some good prospects on the exploration side too. The Shepherds Flat placer gold is 14mtrs down, sounds expensive to recover. But that's for later, under a JV.
Link to a new press release on Muirs: Massey Reef proving up fine, going for a NI 43-101 resource grading by the end of 2012.
http://tmx.quotemedia.com/article.ph...&qm_symbol=GEL
I bring good news.
Two days ago, GEL was granted six exploration permits, all in Otago, mostly placer type areas. The total area is about 250km2 or 25,000Ha.
The permit names are
Argyle (EP53174)
Ida (EP53180)
West Dunstan (EP53185)
Sparrowhawk (EP53189)
Fruid Burn (EP53190)
Lee Stream (EP53229)
The time available for having a look is 4 or 5 years. Sparrowhawk looks to be immediately useful, being mentioned in despatches.
The normal procedure is to carve out a mining permit from within the EP areas, and some of these will be prospective spots for the GRUs.
No word yet on how the capital raising is going. I assume there is a bit of a shortfall in the bank account to pay the next instalment to Bob Kilgour. If the warrants are not picked up at C35c in big enough numbers, they'll have to do a private placement. Going on past history there will be a sweet deal for investors who put up their hands and take on the risk.
Although with the GRUs getting into full action and no shortage of areas to work over, I don't think there is much risk at all. Can't supply numbers yet with any accuracy, but if L&M mining could use the GRU#1 for over a year (24/7 under lights), then so can GEL. And that's just one GRU, there are three in use.
So in the next little while, we should see the GEL website being updated in the placer area and the permit tables. I'll try to keep an eye on that.
ODT put out this at the start of the month, confirms the need to find the $1.5mill for the payment, or to replace it in the bank account if it was made on time today.
http://www.odt.co.nz/news/business/2...ising-activity
Plenty wanting to buy GEL over on the TSX, but the bid is low, bracketing around C20c. I still think this should be the last time GEL is on its knees over cashflow issues. Onwards and upwards.
Onwards and upwards,
I count an EWT 12345abc since 2009.
That makes an EWT 2 of cycle degree.
Will add to this post after I buy some more.
Yeah, yeah promises promises...
Too much engineering to get to the markets, I do not need to be the turning trade...
V.
Might have been a good idea to wait Vtrader: GEL at C19c and larger volume overnight, after this press release about a private placement..
http://tmx.quotemedia.com/article.ph...&qm_symbol=GEL
The TSX price for GEL ended up slightly below C20c, reasonable volume there. The market is saying that this private placement at 20c should be a fair valuation of the value of each GEL share at the moment.
It is true that while GEL has produced the Q1 MD&A report and filed it with regulatory authorities, you cannot find it on the web except by digging into SEDAR or by looking at my cut-down version futher back in this thread. Neither is there any update to the website from the last two media outputs. Ordinary shareholders are all still very unsure about the details on the GRUs, and of course we will not be told the average grades at each permit, only the total gold ounces recovered. This will not allow shareholders to gauge the profitability of the placer mining, and a big chunk of the predicted profits will need to go to Bob Kilgour under the repayment plan.
Make no doubt about it, this data is critical for an FA evaluation of the company for the next year or two, because as we have seen, mining exploration is done in terms of years of drilling, not in months. Despite my fond hope of Glass Earth using an asset finance company loan or short-term bank overdraft going forward, this has not been the case. The C35c options are now gone as a liability or overhang on the shareprice, but in return the only avenue for fund raising seems to be another firesale of shares.
I have had occasion to borrow money for a business case, not in this league of course. Banks are hard-nosed, and usually, unencumbered land and buildings are the security they will seek. They will not be very interested in second-hand mining equipment, and permits with promise but no immediate surplus income. This is where the private shareholders and the market must step in.
Just as long as we are all aware that the banks, finance companies and even the private placement investors are saying that GEL is not a "no-brainer investment" yet. It's kind of poetic that the current TSX price is C20c. That's the IPO price (2006), but we've had a 1 for 5 consolidation since then. A long-term holder would have done very poorly, we must all learn from that.
20 days after the Q1 report was notified to the market, it's now posted in full with the MD&A, on the GEL website under the financial reports section. Still very hard to dig the data out from within a big long text listing.
The GEL price is on the move to NZ29c, which is curious since the Canadian price is stuck hard on C20c or lower. So while all of the volume activity happens on the TSX, some NZers are paying 20% more for the share over here. And I doubt whether we can lead the share up.
My attitude at the moment, is that Glass Earth has the cash they needed to temporarily make good on the deal they struck with Bob Kilgour. Like OGC before them, they saw the prize and simply sold more shares at a lower price to get the required capital, diluting those of us who are longer-term holders. I know they tried hard to get the C35c options picked up, but this sort of marketing needs to be sustained over months, not weeks.
Now if we wanted to, we should be able to buy raw shares near C20c (without the future warrant sweetener offered to the private placement investors), and I am doing so, over on the TSX.
Interesting story in the SST today, Fairfax article about an alluvial goldmining operation.
http://www.stuff.co.nz/sunday-star-t...ugh-McAllister
I checked the numbers, if the floating GRU in use here is similar to GRU#1 owned by Glass Earth, the grade is at best 0.2grams/tonne if it's used about 15 hrs/ day. Lower grades on average (less than 45oz per week), means it's still a tough way to earn a living.
The actual records for GEL's permits are now differing from the website's table by a significant amount. I've attempted to attach a pdf of the spreadsheet I keep current, based on the NZPAM public filings.
So the current details are:
Total area in unexpired permits is 1376 km2, at a cost of about $465,000 a year in fees.
Also applied for, another 7388 km2, see table.
While I wouldn't think GEL is allowed to do any exploration over these applied-for areas at the moment, in some cases they have held the permit previously as part of larger areas, so they have kept other parties out of the areas of interest.
Note the Komata area has been dropped, which is a large permit that surrounded the Talisman Mine across from Waihi. That makes it obvious that the latest map associated with the Q1 MD&A is incorrect, and the phrase (oft-repeated) about the total area under exploration is also technically incorrect.
While the MD&A report is more accurate, here's the phrase from the very latest press release, which advises that a clip from the editorial video has been posted around the web.
The "work in progress" page on the website was a good idea, except it hasn't been updated for 6 months..Quote:
Glass Earth Gold is one of New Zealand's largest gold exploration companies, with its experienced geological team exploring promising gold prospects across a land position of approximately 10,000 square kilometres, in both the North and South Islands.
I am putting all this in one place at the moment to illustrate that, contrary to their legal requirements as a listed company, management is not being proactive at supplying timely information to the market, and is regurgitating old data without checking for accuracy. And that's a polite version of what I'm seeing.
Glass Earth gathered in $2.4mill from the sale of shares in the private placement.
http://tmx.quotemedia.com/article.ph...&qm_symbol=GEL
That appeared to be hard work, and about 1/3 of the funds were from investors introduced to the company by other parties, so there was a commission fee of 6% paid for those. Note that the company is still apparently exploring near enough to 10,000 sq km....yeah right.
GEL shares are selling for about C18c to C18.5c overnight, small volume.
Around 14 June 2012, the company Goldmines NZ Ltd shed Bob Kilgour as a shareholder, and on 19th June Dunstan Mining Ltd was renamed Glass Earth Mining. Shareholding status at the Companies Office is now 100% Glass Earth Gold's. GEL still has to make 25 monthly payments (in gold maybe?) to complete the deal. Peter Liddle and Simon Henderson are directors of both companies.
Well, my post must have worked. The GEL website has been updated on the current projects page, as at yesterday. There is no new data as far as I can see, it's just up to date again, for the first time in a few months. The current permits are also shown, along with their areas this time, in Ha or km2. No total, but if you add the granted permits up, it's about 123,436 Ha, or 1234 km2.
Just a few words on each major exploration area. We'll have to wait for any new info. I wonder how the GRUs are going at Drybread?
From the ODT, nothing new, but there are the payments stretching out for 25 months.
http://www.odt.co.nz/news/business/2...canadian-funds
Another earlier article adds some news: the three GRUS require about 20 staff to run them, and the target is 110oz of gold a week. GRU#1 should be almost running by now, based on the timing in the article.
http://www.odt.co.nz/news/business/2...-recapitalises
Note to the reporter, GEL only needs 3,000 oz for $6mill, about 6,000oz really, considering the production costs (not 30,000 oz). Target is 7,500 oz.