AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

The reasonably large dredge at Earnscleugh is being dismantled by L&M Mining. 13 staff have been retained to complete restoration of the farm around the site of mining (temporarily on hold for resource consent), and the others have all found work.

http://www.odt.co.nz/regions/central...ind-other-jobs

[elZorro]

For nostalgia's sake, here is an update on what Drybread looked like in early 2013. At this stage GEL still had hopes for the area, they were going to have a tough winter and cripple all their trucks in the mud, losing well over a million dollars of shareholder funds. Within a few months most of the workers were laid off, and Skevington Contracting picked up the pieces. Eventual loss for GEL was about $4mill.

Courtesy of google street view.

[elZorro]

Newmont Gold is progressing with the Correnso South orebody, located under Waihi East township. The glimmer of hope for AXG holders is that this orebody continues into the Southwest area of Waihi township, where AXG has a permit. It's one of the very few that is still current.

ftp://www.waihigold.co.nz/httpdocs/p...ate_061114.pdf

[elZorro]

It looks like AXG has been let off the hook over more commitments to Neavesville. I wonder who the mystery investor is?

17/11/2014 — Gold
Eurasian strikes new deal on Neavesville
By Ross Louthean
The Canadian mineral royalty company Eurasian Minerals Inc has struck a new deal on its Neavesville epithermal gold-silver project near Waihi in the Hauraki goldfield.
Eurasian Minerals (TSX-V: EMX & NYSE MKT: EMXX) said it has struck an agreement with Australian privately-held company Land & Minerals Ltd which it dubbed “L&M”.
There is a coincidence, but perhaps no more, in the fact that the previous company planning to acquire Neavesville was Glass Earth Gold (now Antipodes Gold Ltd (TSX-V & NZAX: AXG) which before its name change and management change had the support of Christchurch-based Geoff Loudon who is principal of the NZ petroleum, coal and gold company L&M Group.
At the time Glass Earth dropped out of the Neavesville play it was running tight on capital and Geoff Loudon’s group was expected to either take up equity or have some other involvement with the prospect.
However, it all lapsed so Eurasian Minerals began looking for a new partner or acquirer of the property.
Eurasian Minerals said it had given Land & Mineral the right to acquire its subsidiary Hauraki Gold Ltd which controls Neavesille.
Hauraki Gold has also entered into a joint venture agreement and access agreement with the Pakirarahi 1B Trust, which controls surface rights across a majority of the project area.
Under the deal Land & Mineral must:

• Reimburse Eurasian $C100,000 ($NZ112,000) exploration costs.
• Make payment of 75 troy ounces of gold by the second anniversary of the agreement date.
• Pay 600 oz of gold1 within 30 days of the third anniversary of the agreement date.
• Undertake at least 3,000 metres of drilling in the first three years after the agreement date.
• Further payments at the rate of 100 oz of gold per annum beginning with the third anniversary of the agreement until a start to commercial production, which may be credited against a deferred consideration.
• Agree to pay amounts equivalent to 3% of net smelter returns from production from the exploration licenses; in any given year, Further payments made prior to production may be credited against up to 80% of the deferred consideration payable in that year.
• Beginning with a decision to construct a mine based on a JORC (2012) feasibility level Technical Report that supports a positive production decision, payment of 0.01 oz of gold for each of the first 500,000 oz of contained gold in proven and probable reserves1. For any contained oz in reserves that exceed 500,000 oz over the life of the project, the gold payment to EMX will be reduced to 0.005 oz of gold per contained oz.

Eurasian said gold payments may also be made in equivalent US dollars at the then spot price of gold – the mode of payment to be at Land and Minerals’ election.
Failure to make the gold payments or achieve the required drilling would see Eurasian entitled to retake possession of Hauraki Gold or the permit covering the property.
Neavesville takes in a single exploration permit covering 30 square kilometres and several identified gold-silver targets.
One of the mineralised zones, Trig Bluffs, has an historic near-surface inferred resource reported as 3.2 million tonnes grading 2.7 grams/tonne gold and 8.9 g/t silver, for 289,000 oz gold and 944,000 oz silver.
In addition, says Eurasian, a separate higher-grade historic inferred resource of about 0.47 Mt @ 7.1 g/t Au and 20.7 g/t Ag, represents 107,000 oz Au and 312,000 oz Ag.
“The historic estimates should not be relied upon until they can be confirmed. However, the drill-delineated Trig Bluffs gold-silver mineralisation described by the IGNS (GNS Science) report is considered relevant,” Eurasian said.
The district had historic production from the high-grade Ajax Vein system, the single largest producing historic mine in the Neavesville camp, which is within the Pakirarahi 1B Trust land and will be the initial target of an upcoming exploration programme
“The vein has not been explored in recent decades, and only two modern holes have been drilled in the vicinity of the mine workings, both of which intersected mineralisation, with one drilled through a stoped cavity,” the company added.



Companies mentioned in article
Antipodes Gold Ltd
Eurasian Minerals Inc

Land and Mineral Limited (ACN 152 947 601) was formed in August 2011, had its most recent shareholding changes and a share issue in August 2013, and shares the same physical office and joint company secretary and accountant as Kidman Resources, who are listed under KDR on the ASX.

Leading directors for this new owner of the Neavesville prospect seem to be Gregory Seers and Jeff Bennett.

[elZorro]

The Neavesville prospect seems to be the Exploration permit (NZ) EP51767, still listed as owned by Hauraki Gold, in turn owned by EMX, a BVI headquartered company, which is Eurasion. I think last time I looked, a portion of the shareholding was owned by Newmont.

Hauraki Gold has dropped two other permits, one being the other Neavesville permit AXG were looking at, EP52759, in May 2014.

Meanwhile AXG languishes on the TSX at somewhere between C 2c and 3c a share, valuing whatever is left, at a few hundred thousand dollars. Considering the costs of exploration, the unpaid bills out there (although these are falling away), there is still some serious dilution of share value ahead, if AXG were to ever start exploring again.

I haven't seen anything new on the web from them, there will be a new quarterly report soon however. The company website appears static.

[elZorro]

I have had some time to reflect on my previous holdings in Glass Earth. It certainly looks like even the name change to Antipodes Gold (AXG) has not revived the prospects for the company so far. And nor should it - there is much to be learned and remembered from this company's past history.

The last quarterly report gives a half-year comparison between Jan-June 2014 and the same period in 2013.

http://www.antipodesgold.com/uploads...9_aug_2014.pdf

GEL lost over C$6mill in a 6 month period of the first half of 2013, as a result of the alluvial mining operation, and an almost complete backing away from their permits in the South Island. Their accumulated losses are over C$38mill since the company was floated in 2006. In the last report, the directors had each stumped up $10,000 as loans, but since then Chris Castle has loaned $40,000, presumably to repay the directors. The offered shares for this transaction (in case the repayment didn't occur), are valued at C2c each.

In the next three month report, we may see some of the permits being written down. The company is owed $129,000 from some debtors, but who these people are, is not spelt out. The company owes a lot more to others, of course. AXG is meant to spend $700,000 odd on exploration at WKP in 2015 to make up for the cash they haven't paid Newmont under the JV terms. They still owe people who supplied alluvial equipment on lease, and other loose ends.

As one of the smaller investors who supplied these people with the cash they needed to operate for a few years, I have to wonder if I could have expected these poor results. My point of view for several years, was that since they had so many permits and were covering such a lot of ground, they would surely find an El Dorado or similar. I did some due diligence, and thought they were fairly clever greenfield explorers, and genuine.

However, when it came to being alluvial miners, they were far out of their comfort zone. I can see the point of trying alluvial mining - the gold price was high, the exploration results hadn't been spectacular, maybe just bad luck on that score. Around this time Brent Cook had started touting the GEL shares. His interests probably did a lot better than anyone else involved with GEL, as the share cranked itself up, based on frequent reports to his client list from the field data at WKP. But most shareholders didn't make the most of this phenomenon, to exit.

When Brent Cook backed out of supporting GEL, and gold started dropping in price, shareholders were on a hiding to nothing. The alluvial work almost never turned a profit, and now we know it was a fairly badly run operation towards the end.

Without the confidence of investors, GEL or AXG cannot do anything in the near future. There don't seem to be any compelling reasons to expect this to change. One or two things are in their favour: there are a lot of tax losses sitting in the company, which can be valuable to some investors. Also, one or two of the permits are possibly of interest to Newmont. The permit under the rest of Waihi township (immediately East and South of the giant Martha pit), and of course WKP. Both have too few drillholes to be known assets. They will need a lot of cash spent on them, just to see if they are of any use.

With all this in mind, I wonder if AXG will simply be taken over by a bigger company at some stage, or will it be left as a backdoor company for some other aspirants for new shareholder cashflow?

I read the other day that a large proportion of backdoor listings fail or do worse than standard listed companies. GEL was an IPO, however.

I'm interested to hear what others think.

[digger]

elZorro, your not only flogging a dead horse,but your flogging an old pile of bones that only archaeologists could put back together to know that it was once a horse. And the tax lose can only apply if enough of the founding people that substained the lose in the first place. See an accountant on that one.



Now somewhere i see you are very careful on NTL prospects to put it mildly. I would like to hear your thoughts on that company.

[elZorro]

elZorro, your not only flogging a dead horse,but your flogging an old pile of bones that only archaeologists could put back together to know that it was once a horse. And the tax lose can only apply if enough of the founding people that substained the lose in the first place. See an accountant on that one.

Now somewhere i see you are very careful on NTL prospects to put it mildly. I would like to hear your thoughts on that company.

Digger, I wasn't sure of the tax rules for a public company, what you say is true for a private company, certainly.

I am being careful about what I say on NTL, because I haven't researched it well, and want to stay neutral about it at this stage. I did have some shares in it, but sold them a few months ago. Someone else who seemed to know a fair bit about the area, reckoned that all up, the amount of gold left in New Talisman is not a great deal compared to Martha mine and surrounds. Not the amount they are going for, anyway. I was hoping there were not too many parallels with GEL: moving from talking about mining, to actually doing it, and losing a heap of money in the process. But if they take it steady, there shouldn't be too much risk. They'll know if the ore coming out of the hillside is grading 1/2 oz/tonne or more, there should be plenty of cashflow.

[elZorro]

The third quarter report for AXG is out on SEDAR, dated 25th November. As for the last few reports, it's sad reading. None of the three part-time staff have been paid since the end of 2013. There have been some bills to be paid, including $30,000 odd under geological modelling etc. All up C$88,000 has come in from directors (NZ $40,000) and Chris Castle $40,000, $13,000 from someone else. C$70,000 has been spent approx, leaving $13,000 in the bank as at 30 September.

There are two permit areas mentioned only, Waihi West and Hauraki (WKP). WKP is still valued in the books at over C$2mill. By 31st December 2014, AXG is meant to repay C$595,000 to sundry creditors, under a deal that was struck in 2013. Chris Castle is likely to be paid in shares for his cash inflow, at C2c each.

In the MD&A, mention is made of the tough conditions for refinancing.

Antipodes Gold Limited - Management’s Discussion and Analysis
For the nine months ended September 30, 2014
AGL MD&A Report for Q3 2014 Page 13
SUBSEQUENT EVENTS
The Company, in common with many junior gold explorers, needs to refinance and/or restructure.
Management and the Board are now actively pursuing a restructuring. Funding is also required for its
continuing hard-rock activities and to cover General and Administration expenses.

Sounds like restructuring can mean a lot of things, particularly change.

http://en.wikipedia.org/wiki/Restructuring

[Balance]

Holy Shxt - this dog has had a 5:1 and a 10:1 consolidation in the last 4 years and it is trading 2.5c?

The directors and management of this company has turned $10m in 2006 to $264k today - a loss of 97.36%!

How much of that has gone to them in salaries, fees and benefits?

What a freaking waste of time!