AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

Glass Earth Gold Limited (Toronto: TSXV: GEL / New Zealand: NZAX: GEL) is one of the largest New Zealand-based gold exploration companies exploring a land position of over 17,000 km2 in the North and South Islands. GEL maintains its objective to discover new large gold deposits in NZ, and it is currently mining placer gold under its giant Otago permits to provide funding for its ongoing hard rock gold exploration.

New Zealand has a strong history of gold mining, including:

The Hauraki Region, an historic gold province, currently host to the 10M oz Martha Gold Mine, owned by Newmont Mining;
In the Otago Region, in excess of 8 million ounces of placer gold has been recovered since the first gold rush in 1861. The vast Otago Region is also host to the 7.2Moz Macraes Gold Mine (OceanaGold Limited), a major mesothermal hard-rock gold deposit.

HIGHLIGHTS:
GEL holds permits over four distinct gold regions likely to contain new gold discoveries
Newmont is funding the Hauraki Region
Potential to JV with the Muirs Reef Project
Exploration funding generated by mining at Ophir & alluvial deposits
Exploration potential and ground holdings are intact and impressive

READ THE GLASS EARTH GOLD ARTICLE IN CHF SPOTLIGHT, ISSUE NO. 41.
OTAGO REGION
Otago Region has had a historic placer production in excess of 8 million oz Au since its first gold rush in 1861. Otago Region is also host to the 7.2 million oz Macraes Gold Mine (OceanaGold Ltd.), a major mesothermal hard rock gold deposit.

GEL is moving directly to mining alluvial gold and small hard rock resources under its extensive regional portfolio of Otago permits to take advantage of record high gold prices.

Placer Mining at McAdies, Ida Valley commenced in mid-December 2009 following the grant of Mining Permit 52 018 on 10 December 2009. Weekly production is in line with expectations and Glass Earth is delighted to commence modest gold production.

Consents for the Gun Club placer gold project, Ida Valley have also been granted as well as Mining Permit 52 021 (on 22 January 2010).

Together with the 40 tonne placer gold plant currently leased out on the Earnscleugh Project (L&M Mining – nearby at Alexandra), Glass Earth intends to have three placer projects contributing to gold production/cash flow in the first quarter 2010. Cash generated from these projects is expected to significantly contribute to Glass Earth’s corporate operating expenses.

Alluvial Highlights:
• Mining commenced at McAdies (Ida Valley)
1,000 oz Au production can earn $20,000/week

• Processing at Earnscleugh (100 t/h plant)
250,000 oz Au – L & M Mining
GEL contracting plant (currently in test phase)
can earn $3,000/week

• Mining at Nevill’s (Ida Valley) anticipated for Q1 – 2010
3,500 oz Au production can earn $20,000/week

HAURAKI REGION
Hauraki Region is a historic gold province, currently hosting the 10 million oz Martha Gold Mine owned by Newmont Mining.

Newmont continues to operate this joint venture on Glass Earth’s significant ground position in this region, centred on Newmont’s Waihi/Martha mine (above picture). Newmont is aggressively exploring for the next major gold discovery to feed its mill. Newmont advised GEL that it has earned its initial 65% equity in the Northern Hauraki Joint Venture area and continues to earn in to the permits subject to the Central and Southern Hauraki Joint Venture areas.

Drilling at the Goldwyn prospect (3 diamond drill holes) was completed with the best intersection being 46.7m @ 0.2 g/t Au from 99 m. Newmont’s efforts continue to evaluate the potential of the prospect.

Newmont has identified previously unrecognised vein zones at the WKP prospect through a programme of detailed mapping, rock and soil sampling and CSAMT resistivity surveying. Drill testing is planned.


MARLBOROUGH REGION
A programme of stream sediment and pan concentrate sampling was undertaken in the Marlborough region to investigate the potential for mesothermal gold systems outside the zones of known historical workings. In addition, sampling and mapping around the historical mining areas (Wakamarina/Wairau goldfields) was done to determine the mineralisation styles and to seek both extensions to the previously identified vein systems or parallel veins.


MANAGEMENT AND DIRECTORS

MR. SIMON HENDERSON, MSc BSc (Hons), member, AusIMM - President and CEO:
Mr. Henderson is a founding shareholder of Glass Earth and is a geologist with over 30 years experience in the gold mining and exploration industry.

MR. JOHN DOW, Chairman (non-executive):
Mr. Dow is a geologist, joining Newmont Australia in 1978, culminating in him being appointed Chairman and Managing Director of Newmont Australia (previously Normandy Mining Limited) in April 2002.

MR. PETER LIDDLE, CFO and Company Secretary

MESSRS RICHARD BILLINGSLEY, PAUL C. JONES and STEVEN BURNS (Canadian/North American based non-executive Directors) provide valuable guidance in their respective areas of exploration, mining and finance.

Glass Earth is now at the target specific drilling stage in three regions: Hauraki; Mamaku and Otago. Key targets in those areas are:

• WKP in Hauraki (Newmont funded)
• Muirs in Mamaku
• Serpentine in Otago.
• Rise & Shine gold prospect in Otago.

Glass Earth is well placed to achieve this in terms of:
Its extensive ground position;
Experienced management;
Its funding and contributory joint ventures.

Symbol/Exchange GEL: TSX Venture
Shares Outstanding 32.7 M (after 1:5 consolidation in 2010)
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Company Stock Information
Exchange TSXV
Exchange Symbol GEL

Investor Relations Contacts

Simon Henderson
President & CEO
Glass Earth Gold Limited
+64.4.903.4980
simon.henderson@glassearth.co.nz

Jeanny So
Director of Operations
CHF Investor Relations
+1 416.868.1079 x 225
jeanny@chfir.com

Content last updated on 04.14.10

Without a timeline on how long it takes to recover the alluvial gold, it's hard to say what the grades are, or even what portion of the income GEL gets to keep (maybe 50%?). If you add all the income up and assume it carries on for a full year, it's over CAD$2mill, compared to the cost of the admin overheads ($1.3mill). Note this won't be paying for a lot of exploration though.

But, it's a lot better than no income, all spend.