AXG - Antipodes Gold [formerly GEL - Glass Earth]

[bermuda]

El Zorro,
I got some of these ( not nearly enough ) on the advice of you and a mate who is actually turning out to be a bit of a Guru. I had a chat to him in the weekend. Everything is still on tract for this baby to fire. Thanks for all your input.

[elZorro]

Thanks guys, nice to see some other names pop up. I think the TSX price drop (mostly on low volume) just reflects a lack of news, and traders moving on after a few days. Unfortunately with just one or two rigs going, the drilling assays are a bit too spaced out. Maybe WKP30 is being bundled with the next drill result. In any case, if you want some bargain shares in GEL, they usually appear on the TSX, it's just more volatile than the NZAX. But there's no denying that Glass Earth is building up a momentum, and junior explorers that move up to the next step are generally multi-baggers. So I'm not too worried at the moment, and I'm holding plenty.

[elZorro]

The NZPAM website is now back up and running. Here is a link to the mineral section of the site, for existing permits. http://www.nzpam.govt.nz/cms/online-...ate/CMINPSCURR If you supply the number 40598 as a permit number, all of the detail on the permit for the land including the WKP site will come up, in the document.

This reveals that the original site was bigger and started with a term of 5 years, issued to HPD NZ in 2003, and GEL took that over and soon formed a joint venture with Newmont, for 40598 plus other permits. The term has been increased for another 5 years, ending in May 2013, and two extensions of land have recovered most of the space HPD started with. It also confirms most of the land is on the NZ conservation estate, but that is not unusual, and there isn't much else you can do with rugged areas that have probably had all the good timber milled out in earlier years.

Newmont/GEL have just passed the 96 month stage, so had to produce data to NZPAM from 1,000 mtrs of drilling. Maybe they've just made that timeline. Within the next two years, they have to do another 2,000 metres, if I read it correctly. Also a scoping assessment etc. On the earlier maps, Waihi Town is closer than I thought. Resistance to mining under the town might speed things up at WKP.

[elZorro]

September 26, 2011
GLASS EARTH CLOSES FIRST TRANCHE OF $5 MILLION PLACEMENT

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Glass Earth Gold Limited (

TSXV-GEL; NZAX-GEL) ("Glass Earth") today announces that it has closed the first tranche of its previously announced non-brokered Private Placement. A total of 4,717,184 Units have been sold at a price of $0.55 per unit for gross proceeds of C$2,594,451.

Each Unit consists of one common share and one half of a common share purchase Warrant. Each whole Warrant entitles the holder to purchase one common share at a price of C$0.80 per share, exercisable for a period of 24 months from the date of issuance.All securities issued pursuant to the private placement are subject to a hold period and may not be traded until January 27, 2012.The Company anticipates closing a further tranche shortly. The proceeds of this financing will be used for drilling, mineral exploration and general working capital purposes.

Yes, I thought that was right: just a few days ago a large investor(s) valued Glass Earth at C55c (NZ70c) a share within 4 months. Has anything material changed for Glass Earth since then? No.

Here's an excerpt from the June Media report from GEL's website:

Glass Earth employs a scientific, detail oriented, exploration strategy using the newest available technology, implemented by a carefully chosen exploration team in order to explore large prospective areas for big gold deposits. Large amounts of data were gathered in order to build a three dimensional model of their claim geology. Glass Earth was the first exploration company to use modern geophysics in New Zealand, completing a 37,000 line-mile survey covering all targeted areas.

The company also conducted ESCANs, a ground based, 3D resistivity survey method employing a grid of electrodes that provides precise information about the geology and mineralization below. They acquired a geochemical data base from Newmont Mining [NMC-TSX; NEM-NYSE] who conducted an extensive geochemical survey of the Otago region, on the South Island; Newmont withdrew from the area pending a sale of their Waihi Mine (circa 1995). Once all of the data was compiled, the company began the work of identifying and exploring the targets with the most potential.

I forgot about this, Glass Earth has old links with Newmont. Maybe exchanging Otago data with JV options for WKP are part of a sensible deal. Of course, improving gold prices meant Newmont stayed in Waihi.

Things are looking more positive on the TSX overnight, and Vicarage Capital published this a day or so ago:

http://www.vicaragecapital.com/reports/2011/oct/gel.pdf

[elZorro]

Glass Earth have updated the website, the current work page. Looks like, for the first time in a few years, we can see a list of the permits the company has on the go. This will be useful. Each one links back to the NZPAM site for a map reference and details. GEL has a lot of permits, a lot of chances at a pot of gold.

WKP: there is some likelihood of a press release about WKP30 drill results, and they are making a decision on more drilling. So they're probably not currently drilling WKP.

[elZorro]

Here's a good writeup on the costs of setting up a new mine, by Ivan Lo of Equedia.

http://equedia.com/blog/view.php/Its...ple-Mining-101

Applying all of his comments to the WKP situation, Glass Earth could be onto a winner here. The mine would be fairly close to Newmont's Martha Mine in Waihi. If there is found to be 3-5Moz of gold in an open-cast situation, the profit from mining it could easily be $500 per ounce at current prices, so up to $2500 million of net profit. It won't take too many hundred million to set up the mine. The milling equipment and some infrastructure is already nearby, and becoming surplus to requirements.

Access to funding and nearby infrastructure would be the largest impediments to a new mine, so this must explain why GEL is targeting EPs near Oceanagold and Newmont. Management have a payout clause related to a mining setup, so there is a powerful incentive there, also. I'm not expecting the gold price to drop back anytime soon, in fact it looks like it'll be over $1800 soon. It's also a given that while gold may peak and drop back every so often, it always gets back to and exceeds the previous peaks eventually.

[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]

Here's an information poster from GNS Science on epithermal gold in NZ. One map shows the largest mine, Newmont's Martha Hill, and nearby WKP (Wharekirauponga) being on the edge of an andesite area. No wonder GEL is pleased to find andesite under the drill sites for WKP. This is yet another marker when looking for a larger deposit.

http://www.nzpam.govt.nz/cms/pdf-lib..._poster_08.pdf

It's interesting that Waihi is by far the largest Coromandel gold despoit at 6.5Moz so far, but the nearby Golden Cross (mined out and left tidily by Coeur Gold) yielded 1.2Moz for second place, and is 5km south of WKP.