AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

A bit of background on Earnscleugh, from 2009. GRU#1 was leased by L&M to prove the site, and from memory it had to be tidied up a bit more, so it should be in good working order now. Note that L&M kept the permit for the area alive, until gold prices recovered. Total area of 150Ha is 1.5million square metres, the alluvial gold gravel thickness is purported to be seven metres deep, a total estimated 110,000oz in that space. 10.5 million cubic metres of gravel, weight about 1.5 tonne per cube, yielding perhaps 110,000 oz, is a grade of 110,000 x 31/(1.5 x 10.5 million), or 0.2 g/tonne grade.

That is the worst case grade, there will be better pockets of gravel probably. But this area has never been worked before, unlike Drybread. I'm thinking that Vicarage Capital might have misplaced a decimal point in their earlier alluvial grade. Maybe it's 0.3 g/tonne. Placer gold is much easier to process than the Coromandel gold, so it's still possible to make a profit at these grades.

Newmont to look further off to the side of the existing pit. They'll spend $55mill here, partly on spec. They could buy all of Glass Earth for that..

Here's a background on Galena, if this is the outfit with a block of shares in GEL, they won't be there forever, according to their charter.
But they did do very well in 2009.

http://www.hedgefundsreview.com/hedg...set-management

To read the easy way, try googling 'Galena standout special situations fund'

Caterpillar went really well in 2011, doubling profit.