AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

http://www.glassearthgold.com/s/News...eportID=558357


So, this is the new project - I wasn't aware of this area at all. I did notice that GEL has a permit application in for an area called Neavesville North, I don't think it's been granted yet.

Formerly a JORC resource of nearly 300,000oz gold, that's great for a start point as it appears to be shallow, and three times the amount of silver with it. That'll help a small amount with extraction costs. Over another 100,000oz underground accessible. From the supplied map, there's andesite up there, also a good marker. Not too far from Waihi either. A 50% JV with Geoff Loudon interests, means that the other half of the capital won't be a problem. GEL isn't big enough to do a project of this size by itself, but it's also too small for the likes of Newmont. GEL's connections with Newmont would be helpful though, if the ore needs to be processed cost-effectively. No doubt Newmont's facilities at Waihi have some spare capacity at the moment.

I need to spend a lot more time looking at this, but it would appear the terms of one of the permits means it'll be time to do some drilling soon. Payment for the area seems to be on a spread basis and assuming gold is produced in the near term (unless this is going to turn up from placer), or it can be GEL shares or cash equivalent.

GEL now has JV permits covering quite a bit of the area around and above WKP. A good big block if it ends up being mined soon.

For Neavesville, assuming all three permits had a total of say 500,000oz, the valuation being about NZ$250 an ounce inground, at the point they are called NI 43-101 Reserves/resources, then this is a value of $62million to GEL for a 50% holding. A few bills and some drilling to go first (shared costs), but added to nearby WKP it's a tidy picture. WKP has only been drilled 36 times, Neavesville 63 times, but they were on average shallow drills, avg 140metres. There is potentially more lower down, if the surface is the top of an epithermal gold resource, as is normal for the area.

Eurasion's view of the transaction.