AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

...JB....you know the rules....deer and that .....just over the hill......that way.....

Dear el....no...it does not.....re the ORT......its great but make sure you have the prevailing wind.......behind you........its a flat ride......but.................

Yeah good one Troy. Up here the local farmers talk of pheasants with tails as long as shovel handles.

For those of us who missed the TV screening , here is the video. Sure enough, the reporter mentions 80 ounces a week. Hmm..If the Moran site has GRU#1, it should be sitting in a big pond.

http://www.3news.co.nz/Modern-gold-b...3/Default.aspx

[bermuda]

Yeah good one Troy. Up here the local farmers talk of pheasants with tails as long as shovel handles.

For those of us who missed the TV screening , here is the video. Sure enough, the reporter mentions 80 ounces a week. Hmm..If the Moran site has GRU#1, it should be sitting in a big pond.

http://www.3news.co.nz/Modern-gold-b...3/Default.aspx

Thanks for this video elZ

[elZorro]

Thanks for this video elZ

No sweat Bermuda, now we need to see a good bank balance in the Q3 books.

JB, sounds like a good plan with the dredge, that's what I call commitment..

[JBmurc]

Yeah it's great explorer country round here love my trailriding now I've got a new 13lt fuel tank should give the KTM least 180km range a good days riding the mountain ranges...pently wildlife round them hills that and gold LOL

[elZorro]

Yeah it's great explorer country round here love my trailriding now I've got a new 13lt fuel tank should give the KTM least 180km range a good days riding the mountain ranges...pently wildlife round them hills that and gold LOL

JB, just be careful that your shiny new metal detector doesn't get caught up in the front wheel.. I assume you've bought one?

[JBmurc]

JB, just be careful that your shiny new metal detector doesn't get caught up in the front wheel.. I assume you've bought one?

no detector yet don't know if I'll get one,, might instead get a 2in backpack dredge etc paid for by gold shares when they re=rate

[elZorro]

The TSX price dropped a bit on very low volume overnight, that would be the place to buy GEL at the moment. But I have recently formed the view that we're fairly safe buying here at a slightly higher price. There are many reasons for this.

1. GEL has been at C75c /NZ85c in late August 2011 on good news.
2. Unexplained increase in the placer gold recovery from 42oz/week to 80oz/week (News item) as the two GRUs got stuck in at the Drybread areas.
3. The images of Drybread show shallow workings. I'm picking that the GRUs are being fed with the lesser grades on the top of the profile, and that as gold always gravitates downwards, there is better yet to come. I hope it's not down 14 metres like some other spots, but if they're doing 80oz/week now while still warming up to the task, there could be very good news in future.
4. The current 30 staff might need at least $5mill/year to operate with, allowing for equipment and fuel costs. GEL has in the past year or two used maybe $4mill annually, the big external survey costs behind them. They have been frugal. Even 80oz of gold/week will supply $8mill annually, and in view of operating costs (maybe not capital costs), this is a major change for the company.
5. Company valuation could be at the level of 5x net profit from placer plus the value of all the permits, so if the gold throughput improves further and GEL has a positive cash balance that funds more exploration and needs no shareholder support, there will be a steep re-rating of the share price.
6. Sites like Pig Burn and Waikaia will need extra equipment. There might be some more gear in the Dunstan Mining inventory, but just in case, I had a quick look for new GRUs. Are they out of the question for GEL? No.
NZ has maybe 3-4 suppliers of GRUs, here's one:
I was cheeky enough to ask how much, for a 100m3 unit (Model 1200). They can't keep up with demand for them at the moment, they are $150k to $180k each. In view of the money that might run through them, and the lower maintenance, new GRUs are not going to be an issue for GEL, if they have enough good permits to put them on.

[elZorro]

I've had a closer look at the TV3 video. Looks like this showed two views of cut-down GRU#1 at Drybread No.2 (Morans), and GRU#2 at Gunclub. GRU#3 was not shown, it is probably still in primer red.

Maybe GRU#1 is designed to rest in the bottom of a pond, and as the team digs down to the deeper and probably better grades, we'll see a pond forming.

Note the yellow small-scale gold separator being used in the lab on the video, looks like it processes the sample bags from the RC Drilling rig that's mounted on a truck, maybe any placer area trenching samples too.

To save myself further confusion, Garibaldi is a hard-rock discovery triggered from nearby Sparrowhawk South. It is not a placer site, because the gold is bound up in rocks. It'll need drilling, trenching and assays like WKP and Muirs.

[troyvdh]

..gee el.....the way you are going....you will be recipient of some sort of medal......somehow......cheers...troy

[elZorro]

..gee el.....the way you are going....you will be recipient of some sort of medal......somehow......cheers...troy

Troy, I'm still waiting for my embroidered GEL cap, it hasn't worked yet..
Now answer me truthfully, are you convinced to increase your stake in GEL yet? Things are changing fast with the GRUs in action, that's what I think.

More on Garvie Burn from the extensive report:

According to Miller (1966: 61; see also Tyrrell 1999: 52-53) dredging began in the early 1890s at Gow’s and Dome Creeks, but these were not a success. Another dredge, the Golden Crown, was built at Landslip in 1896 (Hamel 1998: 2; Tyrrell 1999: 52-53). This was a failure and moved to the Shag River less than two years later. Further dredging was established in the upper Waikaia area in the late 1890s and at the Garvie Burn, the lower reaches of which were known locally as Muddy Creek. A dredging boom began from about 1902 - 1903 with the success of the Mystery Flat and Muddy Creek dredges, and the use of this technology continued until the 1930s, when in late 1935 the last dredge that worked west of Freshford Plains Station and McDonald’s roads was closed down, dismantled and transported to Waikaka (Tyrrell 1999: 52 - 54). Tyrrell’s (1999: 52-53) table provides details of the names,dates and other details of the various dredges in operation in Waikaia, some of these returning the richest payouts in Southland for their investors at the height of the boom times. For some of the dredging returns, see Tyrrell (1999: 54) and Hamel (1998: 3). Although the Waikaia field was known as the most ‘productive and profitable’ in Southland, the rich lead below Waikaia that ran south to the Garvie Burn was worked out by about 1914, with many dredges closed down by that date.

That last dredge was working somewhere near the GEL EP, which is mainly west of McDonalds Road.

In 1906, here's the output from the Muddy Creek Dredge, 100 oz in a week.

Waikaia gold might be close to its source, 1890s.

This chart shows that the current gold price is about 3x the value available in 1935, when the last Waikaia area dredge was pulled out, during the depression years.

Lucky for some..

In 1910, a Californian report on the NZ Goldfields stated that the "most consistently remunerative dredging field... (see below)

A map off to the east of GEL's permit shows the rough historical positions of 10 dredges in the area, some working on the land.