AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

I've had a bit of a look at the separate NZPAM database of filed reports. http://data.nzpam.govt.nz/GOLD/system/mainframe.asp

You can search the mineral report section for Operator "Glass" or author "Henderson" to pick up some reports in a list, but I couldn't get any to view, as they timed out on broadband. However it would appear that the reports don't contain data on any area that the operator is holding as an EP. That can be withheld until/if the permit is relinquished no doubt. Simon Henderson has reports going back to 1977 at least, so he's no bunny.

[elZorro]

Here's a short video presentation on Stockhouse, from Simon Henderson. I hadn't seen him speak before. He does say that Glass Earth would like to be involved in the development of WKP (presumably with Newmont).


http://www.stockhouse.com/InvestorRe...s.aspx?s=V.GEL

The Stockhouse site is being reworked over the next few days.

[elZorro]

There has been some renewed interest in GEL over in NZ over the last two days. The TSX and NZ prices are well matched, and there will have to be a third quarter report coming out before the end of November, along with management analysis of some sort. I get the impression that head office is very busy with something, but what?

GEL sits at CAN 54c now, near the cost of the new shares that are to be issued. As the tranche was closed early, not as much dilution will occur.

[elZorro]

I can't remember posting or seeing this article from December last year. http://www.nzpam.govt.nz/cms/news/20...ass earth 2011

Newmont is rather secretive and low-key about new exploration. Glen Grindlay is mentioning that standalone exploration areas need to have a potential of 2-3 Moz of gold. If you total up all the areas they have left very near Waihi, it's not great. The WKP joint venture is surely a good medium term bet, and GEL has mentioned the figure of a possible 3-5Moz before, regarding the WKP area. So here we are, waiting for the imminent news on assays from drill WKP30. We have not been told that more drills are going on at the moment, but it would be Newmont running those, maybe they have some other use for the few rigs that might be available. Access at WKP is not good either.

Glass Earth must produce a quarterly report before the end of the month. I have watched the website carefully, I can't see any new data going in there, can't see any action at NZPAM regarding permits, no news articles, so I'm just keeping a wary eye on the gold price. Looks like gold is about to move up again, which is good for the fortunes of Newmont. In turn, GEL should again do well in 2012. They have certainly done well this year.

[elZorro]

Australia's Peel wins gold exploration permits near Cromwell

Friday 4th November 2011

Perth-based junior gold explorer Peel Mining said it has been awarded two exploration permits covering the Rise and Shine gold project near Cromwell in Central Otago.
Peel said the permit area, which was the subject of a competitive permit allocation process by New Zealand Petroleum and Minerals, the government-owned manager of the Crown minerals estate, hosts multiple historic gold workings with historic production estimated at more than 180,000 ounces of gold.
It said the area appears to be structurally similar to the Macraes gold mine, which is owned by the publicly listed OceanaGold Corp. The Macraes mine is about 80 kilometres north of Dunedin and Peel said permit area is located in a similar position in the Otago Schist.
“Substantial amounts of exploration have previously been completed at Rise and Shine,” it said.
“However, the majority of work has been directed at historic workings sited at the base of the Rise and Shine Creek Valley. Peel believes that the Rise and Shine Shear Zone could possibly be 'flatter' than previously assumed, offering potential for large-tonnage, low-grade grade gold deposits extending up-dip from previously defined mineralisation.”
It said it plans to complete a program of drilling aimed at testing this.
“Peel was attracted to Rise and Shine because of its apparent similarities to Macraes” and it offers the company a potentially low-risk, high-return exploration scenario, said managing director Rob Tyson.
Peel reported a A$500,000 net loss for the year ended June 30, down from the previous year's A$700,000 loss. It had A$700,000 in cash at Sept. 30.
Peel shares are 0.5 cents higher at 14 Australian cents on the ASX, having risen from 7 cents this time last year and below their recent peak at 16.5 cents.
(BusinessDesk)
BusinessDesk.co.nz

The two permits are EP53088 and EP53111, cover over 3500 Ha. Of course GEL had an EP in this region, one was called Bendigo, EP40748. EP40771 was another. Press release in 2009:
There has been a competitive tender for these latest permits with NZPAM.

[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...