AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

As hinted by Brent Cook at PDAC, GEL has posted some news on Muirs overnight, great news.

http://www.glassearthgold.com/s/News...eportID=512304

Looks like the latest drill has intersected a bonanza grade section, over one ounce of gold a tonne. Each cubic metre of ore in that 2 metre quartz vein would have about $5000 of gold in it.

The drills are happening very close to No. 4 road, you can see it clearly on the terrain map.

[elZorro]

Another news release, this time it has much more direct bearing on the shareprice, although the TSX is not showing that.

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

Glass Earth has reached an agreement with Bob Kilgour to buy out the other 50% of Dunstan Mining, which includes mining equipment and trained staff no doubt. This means GEL will get 100% of the placer output on their permits, as the JV partner NZ Goldmines (also owned by Bob Kilgour and family) is also in the deal. Mr Kilgour still has other companies that have mining interests, including around Ophir (Ophir Gold Ltd). I'd say this is a major win-win for all concerned. Mr Kilgour will have capital available (some of it drip-fed) and GEL can cover it from the placer cashflow. A small dilution in the GEL shares should be made up by positive sentiment.

GEL is now in a more powerful position, signalling perhaps an end to constant JVs and deals to stitch something together.

Looks like GRU#1, which is the big unit, is not up and running in Drybread yet, but that must surely be occurring in Q2. It would probably quadruple gold output, so quite impressive income for GEL should be just around the corner.

I have also noted that the two sides of this buyout agreement have agreed on a price for about 3.2% of Glass Earth shares as at 15th March 2012.

It is CAD$0.548c, NZ$0.685c, well above the current shareprice . Glass Earth last held that price on the NZAX in Sept 2011, but the TSX market reached nearly CAD80c around then. (Note, see later, this wasn't correct).

More numbers: Here is the projected total placer ounces for GEL in 2012: 7,500 ounces. At NZ$2,000 or so, that's NZ$15mill of gold sales. The minimum payable grade is about 0.2 g/tonne (3 grains per m3 wash), so to get those ounces in the worst case it would take 1.2 million tonnes of dry gold-bearing gravel in a year. With no holidays and running 24 hours, it's 137 tonnes per hour.

Now GRU#1 can handle up to 100 tonne/hr, in L&M's operation they achieved 45 tonne/hr. The figures start to look sensible if the grade is in fact better than 0.2 g/tonne, which is quite likely. Why else are they showing this much interest? If it's 0.5g/t on average, they'll only need to handle 55 tonne of dry ore/hr. They will have three GRUs. With $15mill in income, they should be able to employ about 40-50 people, pay for fuel and repairs, and still have a few million in profits.