AXG - Antipodes Gold [formerly GEL - Glass Earth]

**Aotea** · 08-02-2010, 01:52 PM

Originally Posted by elZorro

Hi Aotea,

Welcome back, are you heading over to your prospect soon? Are the cidadas flying around yet (trout fishing)?

You will have a better idea than most, what did you think of my speculation on the amount of gold in the gravels at McAdies? What would be the range expected in partly covered areas of Otago, if the average grade is higher than on the West Coast?

I'm not sure about the water rights, just happy they got some, and it's not too bad a use for water considering irrigation water (in much bigger volume) is only used relatively inefficiently in Canterbury, say about 30% is used by the crop, the rest filters through the ground. Huge power use too, of course.

Gidday EZ,
Trout fishing is looking very unlikley..I have a ton of work on the house and have been housebound for an age. I can put you onto a good man who would love to take you out if you were interested though.

Re the water, yes it all looks promising really, mostly thanks to incompetent staff at the Council. I wouldnt say most filters into the ground though, most evaporates, and especially in the stoney paddocks!

As for your good value guesses, I think they are possibily a bit optimistic, but I dont know. There is a reason they are mining there afterall....

I think GEL will do well this year and they are one of my NZ Sharetrader comp picks!

**elZorro** · 08-02-2010, 03:40 PM

Aotea,

Hope being housebound is your choice, I know from experience it can take 5 years of all your spare time just to paint the inside!

You might notice I didn't enter the share pick competition for the year, not feeling brave in December. So what sort of % increase in GEL would bring you to the top of the competition table? I see the average spread is about +/- 15% so far.

Anyway, the MV of GEL should get a big boost if McAdies turns out at the high end of the expected range, so good luck with your picks.

I'm still keen on going down to Otago to have a look at these GEL sites, the fishing would be an added bonus, not too worried.

**elZorro** · 10-02-2010, 07:57 AM

Glass Earth has a policy of releasing important information to the market, and Peter Liddle has stated that they do not go along with the very frequent releases from some other operations, that have limited effect other than raising the profile of a company.

But Glass Earth has never had an income up until recently, and by their own admission have been mining at McAdies with some reasonable equipment for at least 5 weeks. There is also a share consolidation and share issue being mooted. Is now not a suitable time for a press release?

What would larger companies do in this situation?

POSTIE PLUS LIMITED
COMMUNICATIONS AND DISCLOSURE POLICY
(As adopted by the Board on 22 October 2009)
1. INTRODUCTION
1.1 TYPE OF INFORMATION TO BE DISCLOSED
As soon as Postie Plus Limited (“the Company”) is aware or becomes aware of any information concerning the Company that a reasonable person would expect to have a material effect on the price or value of the Company’s securities, the Company will immediately tell the NZX that information, unless the information is subject to the disclosure exceptions set out in the NZX Listing Rules.
1.2 DISCHARGE OF OBLIGATIONS
In discharging this obligation, the Company will ensure that company announcements:
• Are made in a timely manner
• Are factual
• Do not omit material information
• Are expressed in a clear and objective manner that allows investors to assess the impact of the information when making investment decisions.

**elZorro** · 10-02-2010, 06:58 PM

Hi Yankiwi,

Yes, I see what you mean, maybe under the clauses of exploration findings, even if McAdies is just a placer site. The cashflow could easily be significant to the MV of the company. Based on the TSX trading last night, someone could in theory buy the whole lot for a few million CDN.

But, I am most impressed with the form of GEL's disclosure document, it is well done, to TSX standards.

Have a look at the equivalent Telecom NZ document, which I was going to post as an example instead of Postie Plus. I couldn't, because it was too full of mistakes!

http://www.telecom.co.nz/content/0,8...203840,00.html

Telecom has also appointed certain executives as authorised spokespeople who are required to ensure that all proposed public comments contain information already in the public domain or information which is not material. Management is responsible for ensuring compliance with the policy.

Telecom's website, contains media releases, quarterly financial information, current and past annual reports, dividend histories, notices of meeting, a list of shareholders' frequently asked questions and other information about the company.

**elZorro** · 15-02-2010, 02:14 PM

Looking back on some of the older posts here, I found some mention of MD&A results from the quarterly reports. These are not often posted to the web, but anyone can access them by going into the "Financial" menu on the Glass Earth website.

This is where some of the drilling and testing results have been recorded by management. I've just added together the comments on the placer mining spots, mainly McAdies, below. Italics refer to new information.

Glass Earth Gold Limited
Management’s Discussion and Analysis
For the three months ended March 31, 2009

- Placer (Alluvial) Targets

Significant effort was put in to delineating placer resources to allow evaluation studies to be completed with a view to mining commencing in Q3. An infill RC-drill programme of 13 drill-holes was carried out to further delineate an indicated alluvial-gold resource. Hole-spacing varied between 25-50m with an average hole-depth of 5m. A total of 66m were drilled. The five highest recently drilled 1m intervals range from 16.7 to 33.5 grains/m3 Au (gold).

A ground magnetic test survey was carried out across this alluvial prospect as well as a gradient array resistivity survey with different electrode spacing. It appears that the detailed measurements (2m electrode-spacing) can distinguish layers dominated by sand and gravel from those dominated by clay and silt in the upper ~10m depths. Such measurements have the potential for filling in gaps of data between shallow exploration holes. The preparation of the mining permit application and associated resource consent application was commenced.

Separately, a drill-programme of 39 drill-holes across three lines was carried out subsequent to encouraging results from previous drill-holes (legacy data). Hole-spacing varied between 10-15m average hole-depth of 3m. The total amount of drilled meters was 128m. The five highest recently drilled 1m intervals range from 3.13 to 11.46 grains/m3 Au (gold).

2nd Quarter
In Q2 2009, the following work was undertaken:

Otago Region Placer (Alluvial) Targets
Management has identified two areas in the Ida Valley region of Otago as having the potential for hosting modest placer gold resources and results from exploration activity to date have been encouraging. Three prospects have been subject to drill testing and two have been tested further with pitting which has supported the drilling results. Once resource and other regulatory consents are received, trial mining is planned.

The Company, in conjunction with its alluvial partner, has purchased a 40 tonne floating gold recovery unit which is currently being refurbished.

3rd Quarter:
Glass Earth Gold Limited
Management’s Discussion and Analysis
For the nine months ended September 30, 2009

Management has identified two areas in the Ida Valley region of Otago as having the potential for hosting modest placer gold resources and results from exploration activity to date have been encouraging. Three prospects have been subject to drill testing and two have been tested further with pitting (25 pits and 54 pits respectively) which has supported the drilling results.

The Company, in conjunction with its alluvial partner, purchased a 40 tonne floating gold recovery unit which has been refurbished in Q3. Requisite permitting processes have been advanced.

A grain of gold is not that big. The best result we have been told about is 0.07oz (2.17grams) of gold per cubic metre, which means about 1g/tonne. Working back from there, the average amount might be 0.1g to 0.5g per tonne. Of course this is just the gravel near the surface, and we don't have much to go on.

Looking again at the quoted breakeven of 3,000 oz gold over two sites, plus another possible 6,000 of hardrock gold as being the target over one year, it starts to add up. The costs per hour per GRU could be in the region of $700 to $750, for a 40 hour week, but as the gold level (on the surface anyway) may be at this lower level, the gross profit would be much more "modest".

At 0.5g/tonne gold, say, the GP could be more like $550 per hour.

These are all just figures guessed at from the small amount of information, and the MD&A documents give plenty of far better test results elsewhere among the permit areas. Perhaps McAdies is a test site, and/or it has a large volume of accessible gravel, with an interesting signature underneath. No doubt we'll find out in time.

**elZorro** · 22-02-2010, 05:27 PM

Just spotted, Crown Minerals shows a surrender of 146.5Ha from Glass Earth, and a matching MINING PERMIT for 52021, the Gun Club Project. The date for this was 22nd February. (It might or might not be a coincidence that 285,000 shares sold on Friday at 7c, the biggest amount here for a few months). It wasn't me buying...

Anyway, this could well be a good spot, considering the adjacent Falconers alluvial/placer results appear to be good. Now GEL need ORC approval to get started on this one.

In the weekend I was near Te Puke and had a drive up No.3 Road, linked up with No. 4 Road and after passing over two one-lane bridges was opposite a private driveway sign saying "Muirs Reef". Opposite was Muir Orchard (kiwifruit I think). There is a lot of kiwifruit being grown on the roads around there, but at the end of No. 4 rd it's more rolling sheep/beef country. There are steep gorges with good looking trout streams in the bottom, but I was not allowed to head off on foot to have a look (2 reasons: pvt property and the family were with me).

Muirs has not seen mining since 1928, but about $55mill dollars worth was taken from the site using fairly rudimentary equipment, at today's prices.

**Aotea** · 22-02-2010, 05:44 PM

Put me down for some of those traded EZ...I thought after all the comments I had made, I should put my money where my mouth is.

This is my third jump into gel, and the first two were short but profitable..may hang around for a while this time

**elZorro** · 23-02-2010, 08:32 AM

Yes, should be an interesting day for GEL holders. I'm going to pay a lot more attention to any drilling and test site information that we have already been given. Maybe that's what GEL means when they say the market is fully informed. If new results are not substantially different, no need for a new press release. Similarly, the mining permit is not a licence to start mining at Gun Club, but no doubt they have been working on the ORC consents process in the background.

I trolled the internet and found these snippets about Muirs Reef:

The prospecting and exploration permits discussed in the previous section indicate
that these activities are primarily focused on potential gold deposits in the Bay of
Plenty. While there is no current gold production in the region, existing information
and the location of the nearby Martha Hill mine at Waihi suggest that this cannot be
discounted in the future. Figure 6 maps some areas of potential interest for gold and
silver deposits, identified using publicly available information. The map locates these
areas in the Western Bay of Plenty and Rotorua districts.

Areas of interest in the Western Bay of Plenty centre on known mineralised areas
with historical gold production. Information from Crown Minerals (2004) focuses on
two locations in particular and provides the following commentary:

(i) Muirs Reefs in the Te Puke area.
Two subparallel, north northeast striking auriferous quartz reefs. Worked intermittently from 1897 to 1928 from several adits and shafts with a production in excess of 1685 kg (54,172 oz) of bullion
from 64,482 tonnes of quartz. These reefs and their possible extensions and repetitions have been explored under various mineral licences and permits in more recent times. The area has good prospectivity and is potentially a future extraction site.

(ii) The Eliza Mine on the Waitekohe Stream in the ranges southwest of Katikati yielded only 150g bullion from 12 tonnes quartz earlier last century but remains a potential future extraction site. The known mineralisation is >400m long, several metres wide, and strikes 15° dipping steeply west.
While these remain potential areas of interest, other interpretations should also be taken into account. For example, Houghton and Cuthbertson (1989, p.31) acknowledge the Eliza Mine deposit, but conclude that the history of prospecting and mining in this part of the Kaimai Range has been singularly unsuccessful..

Gold and base metals
Stokes (1980: 276) recorded the history of gold prospecting in the Tauranga/Te Puke area. A small amount of rock was crushed at the Eliza claim, south of Katikati (Downey 1935: 254). Muir’s Reef, south of Te Puke, was a much more substantial effort, with a number of claims being made there and one substantial mining effort resulting, which operated from the late 1890s until 1928 (Downey 1935: 252; Taylor 1969: 123–134; Stokes 1980: 278–280)....

Muirs Reef, southwest of Te Puke, was the site of the Bay of Plenty's only commercial goldmine. It was operating around the 1920s, and the mining activity generated mail, resulting in the Muir's Reef Post Office being opened in July 1921. An accident in 1924 saw the mine being flooded, and the main pump destroyed. An attempt was made to keep the mine going, but rising costs, diminishing amounts of gold, and continuing water problems, the mine closed in 1928. Once this happened there was no further call for a post office, and it closed in February 1929.

I think I'd need to consult some books for more detailed information, but this does help. Using fairly basic equipment at the time, $54 million dollars worth of gold was recovered (today's trade value), and GEL thinks there is quite a bit more kicking around in the general area (but note the seams appear to be not very wide). If the above data is correct, the average grade was a little less than 1oz/tonne (a creditable 26g/tonne) for the quartz ore, for the two reefs that were mined. GEL has access to historical drill results giving up to 358g/tonne over a 1 metre interval. A little bit of that sort of ore would make up for a lot of lower grades.

**elZorro** · 25-02-2010, 10:22 AM

GEG (GEL) put out a press release last night, just before the start of trade on the TSX.

MINE: GEL: PLACER GOLD PRODUCTION UPDATE AND PRIVATE PLACEMENT CLOSING 08:32a.m. GEL 25/02/2010

REL: 0832 HRS Glass Earth Gold Limited

MINE: GEL: PLACER GOLD PRODUCTION UPDATE AND PRIVATE PLACEMENT CLOSING

PLACER GOLD PRODUCTION UPDATE AND PRIVATE PLACEMENT CLOSING

Glass Earth Gold Limited (TSX-V: GEL; NZAX: GEL) ("Glass Earth" or the
"Company") commences gold production at McAdie's, New Zealand.

Glass Earth Gold Limited further advises that it has closed the non-brokered
private placement announced on October 27, 2009.

Placer mining at McAdies, Ida Valley, New Zealand commenced in mid-December
2009 following the grant of Mining Permit 52 018 on 10 December 2009. Weekly
production is in line with expectations and Glass Earth is delighted to
commence modest gold production.

Consents for the Gun Club placer gold project, Ida Valley have also been
granted as well as Mining Permit 52 021 (on 22 January 2010).

Together with the 40 tonne placer gold plant currently leased out on the
Earnscleugh Project (L&M Mining - nearby at Alexandra), Glass Earth intends
to have three placer projects contributing to gold production/cash flow in
the first quarter 2010. Cash generated from these projects is expected to
significantly contribute to Glass Earth's corporate operating expenses.

Glass Earth's placer operations are managed by GEG's 50% joint venture
partner Dunstan Mining - releasing Glass Earth technical management to focus
on its hard rock exploration in Central Otago, and Hauraki-Mamaku, New
Zealand.

Glass Earth further advises that it has completed the non-brokered private
placement announced on October 27, 2009. A total of 7,420,000 units (the
"Units") at CAD$0.05 per Unit for gross proceeds of CAD$371,000. Each Unit
is comprised of one common share and one common share purchase warrant (the
"Warrant"). Each Warrant entitles the holder to purchase one additional
common share at a price of $0.10 until expiry on December 29, 2012.

The Company also issued 104,000 finder's warrants and paid cash of $5,200 to
finders in connection with the closing of the private placement. The
finder's warrants have the same terms as the Warrants issued to subscribers
in the private placement. The securities issued in the private placement and
the finder's warrants are subject to a hold period expiring April 30, 2010.

The proceeds of the private placements will be used for general corporate
purposes.

Qualified Persons
Glass Earth's exploration programmes are carried out under the supervision of
Glass Earth's President and CEO, Simon Henderson, M.Sc, M.AUSIMM, F.SEG. Mr.
Henderson meets the qualified person requirements (as defined by National
Instrument 43-101) with more than 30 years of experience in the gold mining
and exploration industry.

About Glass Earth Gold Limited
Glass Earth is one of the largest New Zealand-based gold exploration
companies exploring a land position of over 17,000 km2 in the North and South
Islands. With its main office in Wellington, New Zealand, Glass Earth Gold
Limited is listed on the TSX Venture Exchange (TSX.V: GEL) and the New
Zealand Alternative Stock Exchange (NZAX: GEL).

For additional information on the company, please contact:
- Simon Henderson, President and Chief Executive Officer, at +64 4 903
4980 or info@glassearthlimited.com;
- Jeanny So, Director of Operations, CHF Investor Relations, at +1 416
868 1079 or jeanny@chfir.com
- Visit the Company's website at www.glassearthgold.com.

To receive Company news via email, contact jeanny@chfir.com and mention
"Glass Earth news" in the subject line.

Neither the TSX Venture Exchange nor New Zealand Exchange Limited has
reviewed this release and neither accepts responsibility for the adequacy or
accuracy of this release.
End CA:00191649 For:GEL Type:MINE Time:2010-02-25:08:32:33

145,000 shares traded higher over there at CAN 5c.
Looks like some of us could have jumped in on the private placement after all, and had guaranteed CAN10c share options up to 2012. Anyone have any comments?