AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

Financial results for the third quarter were posted for Friday on the TSX. The result was no arrest in the slide in value over there. On the face of it, just another loss posted. But there is plenty to be hopeful about.

The loss was smaller than usual, and some exploration areas had to be expensed as they were let go. The placer or alluvial mining profited just $60,000 last quarter, meaning the ground at Gun Club is not too prospective. But GRU#1 is going to be at Drybread soon, and it's a whopper compared to the smaller plant they've been using.

They keep promising to show us the results from WKP30, it's a separate news release, expect that this week I'd think. Note that "more step out drilling is planned at WKP South", that's good news from Newmont. Also drilling is ongoing at Muirs, and the long-sleepy Ophir mine proposal gets a mention too.

GEL has plenty of cash in the bank for the moment, so let's hope GRU#1 keeps it stable, and in particular WKP results could add plenty of excitement in the months ahead.


Also spotted for the first time: GEL is running banner ads on the Stockhouse website, seem to come up if you look at OGC.

[elZorro]

Those banner ads mention some big GEL holders like Sprott Asset Management. When we say big, that is a comparative term, since the entire MCap of GEL is fairly small at the moment.

But I wonder if Sprott et al have been kept in the loop already over what happened with the drilling results at Serpentine, and what the WKP30 results were. Because this is surely now old news for insiders. Assays on core drills don't look to me to be very time intensive. If management and insiders are sitting on poor news from these drills, that's not quite cricket is it? And that's being polite. I have directly asked management about Serpentine results by email. No reply.

When are we going to get some proper information about Newmont's intentions over WKP in general? They have been hot and cold in the very few instances I have read in the media. National is back in, there was something in the media yesterday about Newmont looking at the Conservation Estate for mining sites. Well, WKP is on the Conservation estate I think. Not that we've ever been informed further about that.

Of course, Newmont poking around slightly inland from Thames, when the watchdogs have stated no mining north of Thames will be acceptable, is like a red rag to a bull. Hmm, maybe it'll make WKP look good by comparison.

Late today a new press release showing some lowish results from surface trenching at Muirs. However GEL own this site 100%, and it extends 650mtrs at least and could be quite deep. Some followup drills are planned.

http://tmx.quotemedia.com/article.ph...&qm_symbol=GEL

[elZorro]

Reading the news again, 17 diamond drill holes for 2500mtrs at Muirs, that should provide a lot of data. It's a few more holes than we've seen at WKP from Newmont. The access is probably a lot better.Comments from anyone else always appreciated...

[elZorro]

Released overnight for the TSX market: Newmont is drilling at WKP again.

http://www.marketwire.com/press-rele...el-1593338.htm

The WKP30 results are finally revealed, not too exciting as we'd guessed. But 9mtrs at 1/10oz (3.5g/tonne) isn't all bad. Simon Henderson reveals that WKP South has a strike potential of at least 1,000 metres, that the latest drilling program is a substantial one for infill and expansion purposes, and that the host rock underneath is Andesite, another good sign. The WKP area is referred to as being very large.

Simon Henderson, President and CEO, commented that, "The WKP Project represents a substantial zone of very encouraging gold-silver mineralisation, with three major zones of gold/silver enrichment in a very large and fertile epithermal alteration system of significant dimensions."

There's no doubt GEL are stepping up their promotion, especially on Stockhouse. This press release has also gone out to a lot of mining broadsheets. WKP looks more and more like a site that would suit Newmont's equipment and plant really well. Who knows, maybe the press releases were put on hold until after the election. I would guess National being voted back in has been a favourable outcome.

Here's the latest map of the area, note that the area to the south of WKP South has an arrow indicating an expansion drilling direction. Will this be WKP South South?

A bit more interest being shown in the share today. Has to be better than HGD doesn't it?

More on the Muirs drilling program from NZResources today.

New round of drilling on Muirs Reef

Ross Louthean — 2 December 2011
A new round of drilling is being undertaken by Glass Earth Gold Ltd (NZAX & TSX-V: GEL) on the Muirs Reef prospect in the Hauraki goldfield to follow up earlier positive exploration.
Glass Earth fully owns Muirs Reef which is 65 kilometres south-east of the Martha gold mine at Waihi – owned by Newmont Waihi Gold – which has so far produced about 10 million ounces of gold and substantially more silver.
More than 43,000 ounces of gold were mined from the Muirs Reef area in the 1930s – from two reefs Muirs and Massey. Glass Earth Gold chief executive Simon Henderson said recent exploration had discovered significant gold near the historic mining areas.
“We are now drilling 17 more holes to further identify gold in the area,” Henderson said.
In 2007 initial exploration showed results in the 0.5-3 grams/ton gold range.
“This work demonstrated an exciting continuous gold prospect over 5,000 metres in length, surrounding the historic Muirs Reef gold deposit.”
“Work since then has indicated the potential for several major new veins and extensions of existing veins”
Drilling so far has found samples of up to 6 g/t in known veins up to 75m deep with surface trenching showing up to 33 g/t in the broadest vein.
“I am hopeful the latest drilling programme to be completed in early 2012 will confirm to international standards that we have a commercially viable gold resource.”
To expand and develop the prospect's zone of identified mineralisation, Glass Earth Gold's recent exploration focused on surface channel sampling. This programme outlined “significant” quartz veining, exhibiting multiple phases of gold deposition, across over 450 m of the prospect's south-west extension.
Earlier work by Glass Earth in the Muirs prospect includes geochemical sampling, multiple resistivity surveys, and diamond and RC drilling.

[Vtrader]

EZ,
GEL has got you out of the blocks well in the NZX2012 ST comp.
Go the POG.
must be also near time for a ST hamilton meeting...
V.

[elZorro]

EZ,
GEL has got you out of the blocks well in the NZX2012 ST comp.
Go the POG.
must be also near time for a ST hamilton meeting...
V.

Gidday there Vtrader, just finished half the lawns, and feeling fairly thirsty. But we need to plan these things.

First I'd like to thank the person who matched up the TSX and NZ market for GEL for a while. It wasn't me, by the way. Good timing though. But I'm looking at the bigger picture, GEL has a long way to go yet.

BTW, Vtrader's picks in the comp do not include GEL, that's after all my earbashing.. bitterly disappointed. But 7 hardy souls think it's worth a punt, out of over 550 picks.

I do have a poor memory. But I remembered something that was in the 2006 Prospectus for GEL, when it listed on the NZAX. See page 40. Direct from my filing cabinet and typed in, because it would appear that Google and the new Glass Earth website have no recollection of this:

Mr Henderson's contract provides that:

a) Up to 24 months base salary compensation may be payable upon the occurrence of certain restructuring and change of control events or should his employment be terminated without just cause; and

b) A success fee of 2% of the value of Glass Earth's retained equity in any mine/resource put into production (up to a maximum of NZ$2 million per discovery) may be payable.

Mr Liddle's employment contract is similar but has compensation limited to 12 months and no success fee.

Let's say WKP goes ahead, and GEL keeps 35% of a 2Moz resource, valued at conservatively US$200 per ounce in the ground. That's worth $140mill to the company (which would imply Glass Earth shares should be worth at least C$2.50 each at that point, a 10-bagger from today's price) , and the maximum amount of $2mill success fee would be triggered. Muirs is also sitting there, plus whatever Otago may produce.

I think this is a pretty sensible encouragement for key personnel in the company, and it certainly didn't deter me from investing, quite the opposite.

Updates to the permit list on the Glass Earth website were made today, 18th January. These older permits are dropped: 40717, 40765 (expired).
Extended for another five years with reduced area: 40770 and 40739. Atiamuri (Waikato) and Hindon/Game Hen (Otago).

The CHFIR promo website has been updated. The data for GEL is just as out-of-date however.

[elZorro]

More data on the WKP joint venture with Newmont:Here's a radio interview with Sefton Darby (PR for Newmont) on Gold FM. It would appear that Rosemary Segedin is not aware that mining and prospecting for minerals and resources is a big part of the reason for humanity lifting itself above cave-dwelling over the recent centuries. Carefully worded protest notes to garner signatures imply Archey's frog is nearby (it most likely isn't), the bush in the area is virgin native forest (it isn't, looks like regenerating bush), there are no pests to wreak havoc on any native animals that are still there (imported animals like possums, rats, mice, stoats will be all over the place) and that Newmont are drilling with abandon without controls (they're not).This is purely an anti-mining protest, but the facts are: Newmont are working on the fringes of an already briefly mined area, and are close to an ecological reserve, but working well within the rules.

Coromandel protesters in standoff MATT BOWEN, Last updated 13:13 22/12/2011
A standoff between mining giant Newmont and environmentalists unfolded in the Coromandel bush yesterday. Nine members of Earthwatch Whangamata hiked two hours up the Parakiwai valley with the aim of stopping work on an exploratory drilling rig. But when they arrived the operation was being dismantled for the holidays. Spokeswoman Rosemary Segedin said they still plastered stickers on equipment and took photos with banners which halted work. "Then the public relations guy got flown in all the way from Waihi – we did not expect that." The group released a press release in conjunction with Coromandel Watchdog which said, "Protesters send miners home for Christmas". It said the area had high ecological and recreational values and was home to the endangered Archey's frog. "The thousands of summer tourists are on their way, showing the real value of the Coromandel is in sustainable tourism." It also urged businesses and the Government to leave the Coromandel free from mining.
Newmont Waihi Gold external affairs manager Sefton Darby said the media release contained numerous factual errors. "The primary one being them claiming they've sent us home. "They say it's a great threat to endangered frogs. [The Department of Conservation] requires us to hire a scientist of their choosing to do a pre-site survey so we don't end up camping on endangered frogs – in the past they have denied us the site we want and told us to go elsewhere." Mr Darby asked if mining was so bad for tourism then why did 50,000 people visit Waihi every year? "For the Coromandel to be free of mining would require us to sack 700 people, stop spending hundreds of millions of dollars a year on local suppliers, not pay tax to government and to not spend the last 15 years supporting DOC's dotterel programme." Mr Darby said the company would continue drilling in the Parakiwai permit area over DOC land next year. Newmont had six exploration permits on the Coromandel area and a "big" prospecting permit application for the northeast was being processed. - © Fairfax NZ News

What I'm taking from this is that Newmont are very interested in the area around Parakiwai, and to the Northeast. They'll have a good look at GEL's joint permits (which they already own the majority of), and hedge the bet with their own permits. But unlike Glass Earth, who have scarce cash to spread around multiple permits, Newmont are already set up, and will be ready to go with a mining proposal once they've delineated enough to work with. Of course, that will result in a bonanza for the Glass Earth shareprice, not so much for Newmont.

I'm not sure what the umbrella group Coromandel Watchdog are doing way down at WKP.. Any land north of Whiritoa seems to be in the Thames Coromandel district council area, while lower than that, it's the Hauraki District Council's province.

[elZorro]

I emailed Vicarage Capital about their Glass Earth data because it's pertinent to the share price. This has resulted in one interesting change to the December writeup on Glass Earth. Reference to 3g/tonne recovery on the placer areas in Otago is gone. I did think that was a bit hopeful. It's probably more like 1g/tonne. But it looks like the non-compliant estimate of 1.8Moz at WKP by Newmont is correct though, that's good news.

Additionally, this really impressive line is left, that's a real puzzle - Recent Newmont drilling has reportedly included 44m @ 36g/t Au, just to the North of the GEL claim.

The discussion above this relates to WKP. However GEL and Newmont have permit 40813 just above the WKP area. I think the Otahu area will be partly inside the same permit as WKP. Waihi Gold (Newmont) also have permits 51041 (East of Onemana) and 52804, Broken Hills. Both of these are North of 40813, but several km away.

Notably, Renison Consolidated Mining (RSN:ASX) were recently granted two big permits, no. 53464, which is around permit 40813 and lower, and 53469, stretching from 40767 -GEL's beside Martha Mine, to the Golden Cross mine 5 km away. on 19th December 2011. Here is their press release on filing the application in 2011. (RSN is a penny dreadful at the moment, trading at 0.1c, had been as high as 14c 5 years ago. Mcap now $3mill, cash on hand in Sept 2011 $6,000 only). These are their only two permits in NZ.

Most of the area nearby is taken up by gold exploration permits.

So without any further information, it looks like one recent drill by Newmont (recent in 2010?) has hit 44 metres of 1 oz per ton mother lode. Glass Earth management know about it, but it's not on a JV area perhaps?

(From Vicarage Capital)

Thank you for bringing this to my attention.
The statements you have highlighted in the recent monthly note issued by VCL were all sourced from statements & presentations made by GEL management at or following the initial meeting held in March 2010.
As stated in the disclaimer at end of the report, we strive to ensure that the information provided is as accurate as possible, however & I am grateful that you have brought these points to my attention as certain aspects of that stated should have been phrased differently & will be rectified forthwith.
I trust this answers your questions.
Regards
Will


Will King

Vicarage Capital Limited

Here's the earliest post I could find about GEL from Vicarage Capital, a report out on 5th Jan 2011. The same facts are already mentioned, so the news is at least 12 months old. http://www.vicaragecapital.com/image...lass Earth.pdf

This means that the 1.8Moz estimated resource was in place before the more recent drilling in 2011, which discovered WKP South. It's almost certainly over 2Moz of estimated resource now. If Vicarage are uncertain about the permit boundaries, it's possible that slightly 'north of WKP' is where Newmont are drilling now, just below the Otahu area, well inside the lower JV permit.

Here's a map that finally puts the two areas together, provided by Coromandel Watchdog. http://watchdog.org.nz/press-release...romandel-park/

This shows that most of the Otahu schedule 4 protected area is inside the lower part of permit 40813.