AXG - Antipodes Gold [formerly GEL - Glass Earth]

[Aotea]

EZ,
Reductions not linear, but fractions of the balance from what I understand.
As for the lions share- definately, and thats exactly why GEL has burnt many good relationships with other miners in Otago. They claimed and excluded essentialy anything worth looking at, for now, but word is they have missed the boat on some fine spots, so the technology while flash is not infallable.
For the record EZ, I didnt buy into GEL, so am watching from the sidelines with interest. One of Otago's wisest miners suggested I didnt, so I threw my cash into URA with a 20% increase already thanks to DrillFix's wise words...

[elZorro]

EZ,
Reductions not linear, but fractions of the balance from what I understand.
As for the lions share- definately, and thats exactly why GEL has burnt many good relationships with other miners in Otago. They claimed and excluded essentialy anything worth looking at, for now, but word is they have missed the boat on some fine spots, so the technology while flash is not infallable.
For the record EZ, I didnt buy into GEL, so am watching from the sidelines with interest. One of Otago's wisest miners suggested I didnt, so I threw my cash into URA with a 20% increase already thanks to DrillFix's wise words...

Hi Aotea, thanks for the info above. But I think you might have the blinkers on a bit..I've just trawled through all of the linked maps for the GEL permits, and they're littered with other EPs, PPs and MPs, especially in areas outside Otago. Even in your region, those with existing permits to dredge streams, do placer work etc were not impacted on. If ORC release the Intervention data as mentioned in a year or two, surely everyone will be a lot better off?

GEL and others like L&M have been dropping areas as required under their permit provisions, leaving openings for entrepeneurs like you. Just one spot you're looking at may hold several million dollars of alluvial gold.

You've done reasonably well with URA, Aotea, but I see you also have HGD and KAS listed. Those shares are a bit up and down, lightly trading, so similar to GEL at times. One difference: on the TSX last night 1,451,000 GEL shares traded, mostly at CAN5c. This was the Royal Canadian Bank (RBC) selling to "Raymond James". RJ has been buying and selling GEL shares over there for quite a while, making about 20% per swap at the moment. RBC may have picked up these shares anytime during Dec08-Mar09 for 1c or 2c CAN, but even at 2c that's a 250% return in 6 months. Not that unusual in these times, and better than I'm doing on average, by a long way.

You are the best placed on this thread to place some kind of evaluation on GEL's position here in NZ: do you seriously think that (based on the TSX last night) its value is a mere CAN$7.745mill?

[Aotea]

EZ,
what i meant about GEL gutting small miners by their approach is not that it compromises existing permits, but rather sterilises the balance to any future projects. It is contrary to the Crown Minerals requirements where a permit hold musy be actively working it. GEL has been afforded a lot of flexibility in that regard. I dont really want to speculate with my opinion on how the GEL success will be. They have good spots for sure, but really simply by mining alluvial prospects i dont think they are going to make a fortune. Also the fatcats in canada funding the initial get-go will be tired of handing over capital. I didnt buy into GEL based on another miners personal opinion, but it is simply one mans opinion and its not my place to be stirring the pot with my (potentially blinkered) views... I still think obtaining permits for water will be GEL's biggest hurdle.
RE my holdings, so far the only one i hold that is down is ESI, the balance are healthy. Still expect KAS and URA to boost before xmas..
Always happy to add a bit of local flvour and RMA process imput into the fray though!

[elZorro]

Hi Aotea
Hope you didn't take offence, I meant my comments in a polite way..
could have hammed it up a bit like MacDunk but that's not in me

Regarding capital, GEL management were concerned a few months back that with the SP on the floor, there was no option for more capital raising. That's probably not the case now, but anyway they're not needing more than a million or two (so they said) to help get going with the placer mining.

The placer mining is only a means to get some capital together for more big-time exploration in NZ. As another benefit, they're hoping to be able to run some shallow hard rock through some gear on the same mining permits. You'll see that they mention several times that the name of their game is to make a major discovery or two. In the original prospectus you'll find a big dangling carrot for the CEO if one is made. Just enough to retire on. In the meantime all GEL staff and management seem to be on a fairly tight budget.

Aotea, what is the sequence for mining permits? Does GEL have to obtain all the regional council permissions for water/noise/dust/traffic before Crown Minerals approve a permit? What timeline is usually involved?

[Aotea]

Gidday,
not at all, it takes a lot more to wind me up than that! Dont mind doing a bit of stirring myself!
I cant see why GEL cant find enough alluvial to fund a big project, so its not unreasonable to assume they are working towards the right outcome. Re permits, crown minerals doesnt even consider regional council issues. dust and noise is a district council issue. The crown minerals permits are mutually exclusive to the rest, and almost always are done and dusted before consents from councils are considered...

[elZorro]

Gidday,
not at all, it takes a lot more to wind me up than that! Dont mind doing a bit of stirring myself!
I cant see why GEL cant find enough alluvial to fund a big project, so its not unreasonable to assume they are working towards the right outcome. Re permits, crown minerals doesnt even consider regional council issues. dust and noise is a district council issue. The crown minerals permits are mutually exclusive to the rest, and almost always are done and dusted before consents from councils are considered...

OK Aotea, thanks, I see the similarities with the situation HGD is in, and your comments there. Except, GEL has all the resources to fulfill a permit, with plenty of help from contractors, and it's a far simpler operation in both cases. By the sound of it, GEL will comfortably get both current mining permit applications approved, but will need to work on the resource consents.

Shall we look at the SPs for URA, HGD and GEL in a month's time, and see which worked out the best? I've swotted up all I can on GEL, and it still looks like a no-brainer in the medium term. Volume before price, and we saw the volume on Friday.

Of course, even this volume is not that unusual: in April 2008, 18.3mill shares traded for CDN15c as St Andrews Gold consolidated its portfolio. And a short time later, more shares traded for a bit less (11c) as more was divested:

http://www.infomine.com/index/pr/Pa626314.PDF

At this stage Herbert Abramson (Chairman of St Andrews) held 13.8% of GEL (over 20 million shares), with other new parties holding 9.1%, 9.6% and 4.3%.

Assuming these big shareholders are still there, I'd expect selling resistance at least until the SP reaches CDN11c.

[elZorro]

On 4 October 2009, two of GEL's EPs will reach the end of their standard terms. One of these is the original permit covering Muir's Reef (EP40667). It has since been protected in all directions by the larger EP40768, the surrounds stable now until late 2010. Here is a brief overview of the data I could find on Muirs:

From the GEL Website:
In the Mamaku Region, Glass Earth has identified through its geophysical surveys the extension of the Coromandel Volcanic Arc, host to the 10MOz Martha Gold mine operated by Newmont at Waihi.

Gibraltar-Muirs-Otawa Prospects:
Surrounding the historic Muirs Reef gold deposit (production 43,642 Oz gold circa. 1930's), Glass Earth's Gibraltar and Otawa prospects have demonstrated that this exciting epithermal gold prospect represents one large continuous alteration and quartz veined system over 5,000m in length. Historical drilling and channel sampling in the 1990's on the Muirs section returned interesting individual gold intercepts (including channel sampling of 22m @ 1.76 g/t Au; Hole RC33 from 61m to 62m: 1m @ 358 g/t Au; channel sampling of 20m @ 4.9 g/t Au).

In September / October 2007, Glass Earth completed E-SCAN® 3D resistivity surveys* over the Gibraltar and Otawa targets, respectively south and north of the historic Muirs Reef gold deposit which, combined to surface mapping, has traced the vein / breccia system for over 5,000m. Rock chip sampling of outcrop by Glass Earth personnel has returned individual rock chips in the 0.5-2g/t Au range.

Drilling commenced in August 2008 over the Muirs Reef prospect.
Drilling and assaying of the first diamond drill hole on the Massey section of Muirs Reef provides strong encouragement, showing initial indications of a broad section of mineralized quartz veins (30m @ 1.2 g/t Au and 6 g/t Ag, true width ~20m). Drilling beneath the 20m @4.9 g/t gold included a wide mineralized zone steeply dipping beneath the Massey channel and two other peripheral mineralized quartz veins, providing indications of a broader epithermal system than previously described.

The breadth of the mineralized quartz veins, and the intersection of several peripheral veins (up to 4.5 g/t Au over individual one metre intervals) indicates the potential for a large epithermal system. The Massey and Muirs veins lie some 350m apart, with the known Muirs veins mapped over 1500 metres (demonstrated from historical RAB/RC drilling). Recently completed EM (gradient array) ground surveying between the two reefs has detected new resistors indicating additional veining lies between the two vein systems.

Quartz, chalcedonic colloform banded quartz, silicic altered bladed calcite and adularia assemblages all indicate an epithermal system at a very high-level, with unconstrained potential at depth.

Exploratory drilling is anticipated to be near-continuous throughout NZ spring 2008 on this area concentrating on the delineation of resources in the vicinity of the Massey / Muirs vein systems.


From Crown Minerals Site:
Glass Earth says Muirs Reef drill results indicates potential for wide gold system — filed under: News, Minerals
14 October 2008, Source: Glass Earth Gold and Lindsay Clark -

Exploration company Glass Earth Gold Ltd’s first stage drilling at its Muirs Reef prospect near Te Puke in the North Island’s Bay of Plenty region, has indicated a high-level epithermal system, the company reports.

The first diamond drill hole in the Massey section of the Muirs Reef prospect intersected 30 m (true width 20 m) @ 1.2 g/t Au and 6 g/t Ag, confirming a mineralised system to 75 m depth, Glass Earth Gold said.

The hole was drilled beneath a surface channel with a recorded grade up to 4.9 g/t Au across the section and included a wide and steeply dipping mineralised zone.

The hole is the first of 10 planned along the 5 km-long Muirs prospect in the Mamaku area.

Additional gold mineralised quartz veins intersected either side of the intercept indicate the potential for a broad stockwork of veins between the parallel Massey and Muirs quartz vein systems which are 350 m apart.

The breadth of the mineralised quartz veins and the intersection of several peripheral veins (up to 4.5 g/t Au over individual one metre intervals) indicate the potential for a large epithermal system, Glass Earth Gold said.

The known Muirs veins are mapped over 1,500 m through historical RAB/RC drilling. This epithermal gold prospect conjoins the Otawa and Gibraltar prospects into one large continuous alteration and quartz veined system over 5,000 m in length.

Recent EM electrical ground surveying confirms additional resistors indicative of new veins in the vicinity of Massey and Muirs reef. Quartz vein petrology indicates a high-level epithermal system with unconstrained depth potential.

The second hole drilled 80 m along section on the Massey reef, was last reported at 105.6 m and still in the target zone.

Exploratory drilling is anticipated to be near-continuous over the next few months on this area, concentrating on the delineation of resources in the vicinity of the Massey/Muirs vein systems.
Last updated 15 October 2008

May 21 2009, GEL press release:

Infill resistivity surveying on the Muirs/Massey Reefs is planned to commence
in July 2009 assisting in delineating two potentially new high level vein systems adjacent to the known Massey and Muirs reefs. Rock chips assaying up to 4.58g/t gold, and soil geochemical anomalies up to 458ppb gold confirm surface evidence of the two new West Muirs and East Muirs vein systems. Drilling is planned to follow as funding becomes available.

The Muirs EP didn't have any surrender clauses, and a GEL field site was established there at one stage, so quite a bit of work has been done. I think it's unlikely GEL will want to leave this prospect.

Conclusion: another MPA could be on the way

[Aotea]

OK Aotea, thanks, I see the similarities with the situation HGD is in, and your comments there. Except, GEL has all the resources to fulfill a permit, with plenty of help from contractors, and it's a far simpler operation in both cases. By the sound of it, GEL will comfortably get both current mining permit applications approved, but will need to work on the resource consents.

Shall we look at the SPs for URA, HGD and GEL in a month's time, and see which worked out the best? I've swotted up all I can on GEL, and it still looks like a no-brainer in the medium term. Volume before price, and we saw the volume on Friday.

Of course, even this volume is not that unusual: in April 2008, 18.3mill shares traded for CDN15c as St Andrews Gold consolidated its portfolio. And a short time later, more shares traded for a bit less (11c) as more was divested:

http://www.infomine.com/index/pr/Pa626314.PDF

At this stage Herbert Abramson (Chairman of St Andrews) held 13.8% of GEL (over 20 million shares), with other new parties holding 9.1%, 9.6% and 4.3%.

Assuming these big shareholders are still there, I'd expect selling resistance at least until the SP reaches CDN11c.

Gidday EZ,
Thanks for the info about Muirs. Certainly sounds like there may be some substance to get excited about. Although a hypothetical exercise, Im always happy to ut URA against GEL for a month and see what happens come 1 Nov. URA is 5.9 and GEL is 8.9.
You may convince me to buy into GEL yet if the good news keeps coming...

[elZorro]

Hi Aotea,

Thought you might find Muirs interesting..don't delay though, there's only a few shares left (Everything's for sale at a price )

But hypothetically, if one of the GEL prospects turns into a Martha Hill, any shares bought at current prices will look to be a fairly good bargain. And as you say, GEL has probably the best chance in NZ of making that happen at the moment.

From the CHFIR site (posted sometime this year): a bit more detail I'd missed:

Three diamond drill holes in Q4 2008 intersected mineralisation, confirming a mineralized system to 75m depth; initial results provide indications of a broader epithermal system than previously reported. Quartz vein petrology indicates a high-level epithermal system with unconstrained depth potential.

Recent EM electrical ground surveying confirmed additional resistors indicative of new veins in the vicinity. Results from Glass Earth’s drilling are intended to ‘link’ legacy drill intercepts and mineralisation into an initial resource calculation.

Regards.

[elZorro]

Sinosteel yesterday applied to CM for an extension of its prospecting permit (minerals, including gold) over a big chunk of the Waikato. The Maplink from CM provides a good picture of the current EPs and other permits in the CVR/Waikato, including GEL's now orphaned EPs in the CVR, Muirs, and areas around Martha Hill, Waihi. Interesting.

http://data.crownminerals.govt.nz/Pe...x?permit=39344