The WKP30 results are finally revealed, not too exciting as we'd guessed. But 9mtrs at 1/10oz (3.5g/tonne) isn't all bad. Simon Henderson reveals that WKP South has a strike potential of at least 1,000 metres, that the latest drilling program is a substantial one for infill and expansion purposes, and that the host rock underneath is Andesite, another good sign. The WKP area is referred to as being very large.
Simon Henderson, President and CEO, commented that, "The WKP Project represents a substantial zone of very encouraging gold-silver mineralisation, with three major zones of gold/silver enrichment in a very large and fertile epithermal alteration system of significant dimensions."
There's no doubt GEL are stepping up their promotion, especially on Stockhouse. This press release has also gone out to a lot of mining broadsheets. WKP looks more and more like a site that would suit Newmont's equipment and plant really well. Who knows, maybe the press releases were put on hold until after the election. I would guess National being voted back in has been a favourable outcome.
Here's the latest map of the area, note that the area to the south of WKP South has an arrow indicating an expansion drilling direction. Will this be WKP South South?
A bit more interest being shown in the share today. Has to be better than HGD doesn't it?
More on the Muirs drilling program from NZResources today.
New round of drilling on Muirs Reef
Ross Louthean — 2 December 2011
A new round of drilling is being undertaken by Glass Earth Gold Ltd (NZAX & TSX-V: GEL) on the Muirs Reef prospect in the Hauraki goldfield to follow up earlier positive exploration.
Glass Earth fully owns Muirs Reef which is 65 kilometres south-east of the Martha gold mine at Waihi – owned by Newmont Waihi Gold – which has so far produced about 10 million ounces of gold and substantially more silver.
More than 43,000 ounces of gold were mined from the Muirs Reef area in the 1930s – from two reefs Muirs and Massey. Glass Earth Gold chief executive Simon Henderson said recent exploration had discovered significant gold near the historic mining areas.
“We are now drilling 17 more holes to further identify gold in the area,” Henderson said.
In 2007 initial exploration showed results in the 0.5-3 grams/ton gold range.
“This work demonstrated an exciting continuous gold prospect over 5,000 metres in length, surrounding the historic Muirs Reef gold deposit.”
“Work since then has indicated the potential for several major new veins and extensions of existing veins”
Drilling so far has found samples of up to 6 g/t in known veins up to 75m deep with surface trenching showing up to 33 g/t in the broadest vein.
“I am hopeful the latest drilling programme to be completed in early 2012 will confirm to international standards that we have a commercially viable gold resource.”
To expand and develop the prospect's zone of identified mineralisation, Glass Earth Gold's recent exploration focused on surface channel sampling. This programme outlined “significant” quartz veining, exhibiting multiple phases of gold deposition, across over 450 m of the prospect's south-west extension.
Earlier work by Glass Earth in the Muirs prospect includes geochemical sampling, multiple resistivity surveys, and diamond and RC drilling.
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.
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.
I reckon that A.B. Christie would be an interesting person to talk to regarding WKP. Here's another document that he's a co-author of, this time all about Wharekirauponga. The document is linked on the Glass Earth website, for good reason. Dated 2008 I think. http://glassearthgold.com/i/pdf/Christie_p137.pdf
Here's the Abstract and the Conclusion, there's a lot more detail in the rest of it.
Exploration of the Wharekirauponga Epithermal Au-Ag Deposit,Hauraki GoldfieldA B Christie1, S D C Rabone2, R G Barker3 and R J Merchant4
ABSTRACT The Wharekirauponga prospect, located about 10 km north of Waihi in the Hauraki Goldfield, is a rhyolite-hosted,adularia-sericite, epithermal Au-Ag deposit, with a 40Ar-39Ar age of 6.3 Ma measured on vein adularia. Exploration between 1978 and 1993 consisted of aeromagnetic surveys, ground-based geological and hydrothermal alteration mapping,rock chip and soil geochemical surveys, ground magnetic surveys, CSAMT and DC resistivity surveys, and the drilling of 5505 m in 23 diamond drill holes. An approximately 3 km × 2 km area of low relief negative aeromagnetic anomalies, attributed to hydrothermal alteration, encompasses a c 500 × 250 m zone of +0.1 ppm Au in rock chips, in turn containinga c 350 × 50 m zone of mineralisation outcropping in a gorge of Wharikirauponga Stream. The Au-Ag occur predominantly as electrum in sheeted to stockwork quartz veins and disseminated in hydrothermally altered rocks.Maximum assays of drill core are 89 ppm Au (with 52 ppm Ag) and 72 ppm Ag (with 9.0 ppm Au), but the mineralisation is generally low grade. XRD analysis of more than 300 surface and drill core samples show that in the rhyolite, quartz+adularia alteration associated with the quartz veining and Au-Ag mineralisation, grades outward to quartz+ illite alteration,and to interlayered illite/smectite and kaolinite + smectite alteration assemblages in flanking rhyolitic tuffs. Inferred formation temperatures for these alteration assemblages are supported by fluid inclusion Th and Tm determined in vein quartz, which suggest fluid temperatures between 180 and 250°C, with apparent salinities up to 1.2 eq wt per cent NaCl. Fluid inclusions and oxygen isotopic analyses suggest boiling. Exploration to date has outlined a low-grade resource, but has so far not defined any upflow zones of the former geothermal system where higher Au grades may occur. The strike extent of the prospect has not been fully defined and it remains open to both the NE and SW where it passes beneath younger cover rocks.
WKP has had much effort expended in exploration and research, particularly in the application of XRD and fluid inclusion analyses from exploration and research viewpoints. The prospect exhibits a variety of favourable features to encourage exploration: it is a large mineralised system, which hosts a significant quartz vein stockwork zone within quartz-adularia altered host rhyolite; locally the veins carry high-grade mineralisation albeit over narrow intervals. The system is open in two directions and not well tested where it occurs in basal andesite host rocks, which are typically better host rocks for epithermal vein style mineralisation in the Hauraki Goldfield. The fluid inclusion and wall rock alteration data suggest that polyphasal boiling has occurred within the system; however, major upflow conduits are yet to be discovered. Although there isisotopic evidence of fluid mixing, specific mixing zones, also prime targets for gold mineralisation, have not been identified. The strongest mineralisation and vein development intersected to date is in the south of the gorge section (in DDHs 20 and 23). Low amplitude-long wavelength magnetic anomalies are extensivein this area, despite the presence of outcropping unaltered Whakamoehau Andesites. This suggests that Whakamoehau Andesite post-mineralisation cover here is thin and that alteration extends a considerable distance south of the gorge section. Significant exploration potential consequently exists in this direction beneath cover rocks (cf Golden Cross; Mauk andPurvis, this volume).
ACKNOWLEDGEMENTS Rabone, Barker and Merchant were at various times part of theteams of exploration geologists that worked on WKP. Research by Christie was funded by the Foundation of Research, Science and Technology under contracts to the GNS Mineral Resources Programme managed by Ian Graham. Julia Vodanovich and Carolyn Hume drafted the diagrams and Pat Browne reviewed the manuscript. REFERENCES
As this diagram shows, Newmont has been using drill and GEL data to look in a Southwest direction at the moment. It looks like they have found one or more mixing zones with high gold content. There may be more yet, and WKP30 was probably designed to see if the gold levels increased as they went lower down, rather than just finding out if there was andesite present. For geologists and gold explorers, WKP must be a dream of a site. More work from Richard Barker (early 2010), helping to explain why the drilling is in the South direction: there are ecological reserves to the north.
Here's a 2 month-old post from Vicarage Capital (UK), that I missed (Oops, no I didn't, I just didn't read it properly). There is a December 1st update, with no. of shares issued now being more correct. There seems to be some very interesting new data inside the short note, that is not available anywhere else. http://www.vicaragecapital.com/reports/2011/oct/gel.pdf -including this really massive find by Newmont (no true width dimensions but 44 metres at over 1oz per tonne) slightly north of GEL's claim at WKP. This might put the find close to the Otahu Ecological reserve.The locals are restless. Google gives no further hints about this "reported find". It could even be just to the north of WKP West and still inside the NZPAM permit, or could be on EP40813, Glamorgan, still a JV between GEL and Newmont, although that technically expired in Sept 2011. It could also be a typo (but it's now a 2 month typo).
Waihi West JV (North Island):
JV with Newmont (65%). The property is located immediately to the south & west of Newmont’s 10Moz Au Martha open pit & underground mine, the JV is on strike with the associated Martha vein systems. The project itself is subject to a 2%NSR payable to Geoinformatics Exploration Inc. 2010 work by Newmont on the JV and their own assets has shown the presence of several high grade veins (NE-SW strike, near surface and underground).
On March
26th, 2010 Newmont started drilling an alteration zone 10km from the Martha mine (this is WKP); it has similar magnetic alteration characteristics to the Martha mine, a 900m strike, 150m width and believed 300m depth. Historic exploration(1980-90’s) included 150m @0.9g/t Au; 17.7m @ 4g/t Au; 32m @ 1.45g/t Au; & 1m @48g/t Au. Recent Newmont drilling has reportedly included 44m @ 36g/t Au, just to the North of the GEL claim.
WKP West JV (North Island):
Following acquisition of these properties, GEL entered in to a JV with Newmont (65%);Newmont can earn a further 10% interest by funding a feasibility study. The project itself is subject to a 2% NSR payable to Geoinformatics Exploration Inc. Newmont is understood to have calculated a (non-compliant) internal resource estimate of 1.8Moz Au on this property. Recent results from the on-going diamond drill programme include178m @ 1.05g/t Au & 3g/t Ag; and 64m @ 2g/t Au & 2.6g/t Ag; 1.4m @ 30.7g/t Au and77.7g/t Ag within 152.4m @ 1.16g/t Au and 2.22g/t Ag, and most recently 49m @ 1.08g/tAu and 3.32g/t Ag. Drill hole DDH
WKP 29, drilled westward (previous holes were drilledeastward into the WKP West resistor) targeted a potentially new mineralised zone (WKPSouth) to the south-west, represented by a strong resistor, intersecting a zone of highgrade gold-silver mineralisation: 3.2m @ 37.0g/t Au and 17.0g/t Ag. The strong resistorextends both north and south of the current drill hole, with another drill hole WKP 30,(results pending) drilled beneath WKP 29, angling at depth and traversing the resistorfor a length of 720m. Aeromagnetic and CSAMT resistivity geophysical surveys indicate this new zone has a strike potential of at least a kilometre.
Just showing how volatile GEL is to news like this, have a look at the TSX market from early October (Vicarage report was 3 Oct). The shares rapidly climbed from about 33c to 52c or so (NZ 66c), before trailing back after 2-3 months of less impressive news and slow drill results. But more results from WKP work and GEL drills at Muirs should liven up the price again, early in 2012. If Newmont conservatively think WKP has at least 1.8Moz of gold, that is just below their trigger point of 2-3Moz for mining establishment (Glen Grindlay, earlier post). So not far to go.
The Otahu ecological area or Parakawai reserve are mentioned as suitable habitat for Archeys' frog , both areas are at least 1km north of the WKP area. That doesn't mean there are any remnant frogs in either reserve. These are relatively small protected schedule 4 areas specially marked out of the conservation estate at the moment. There was a hue and a cry when the National Govt brought up the idea of removing the protection in 2010.
8. Otahu Ecological Area and Parakawai Geological Area
The 396 hectare Otahu Ecological Area ispart of the Coromandel Forest Park, located south-west of Whangamata. The 68 hectare Parakawai Geological Area (incorrectly described in Schedule 4 as the“Parakowhai Quarry Ecological Area”) is located nearby and is also part of the Coromandel Forest Park. These two areas are located within the formations that confine several significant gold deposits, including Te Aroha, Karangahake, Golden Cross,Wharekiraponga and Ohui.They are likely to have excellent potential for development of medium grade, medium tonnage, gold-silver vein deposits, which would become apparent with exploration and increased knowledge of the areas. It is estimated there is potential within the two areas for a million-ounce ore body, which would be worth approximately $1.5 billion at today’s prices.The Otahu Ecological Area comprises lowland to montane forest, including kauri, and ispart of the largely forested Otahu River catchment. This catchment drains to the Otahu Estuary. The Otahu Estuary and catchment is one of few areas remaining in the Coromandel that provides a reasonably intact natural sequence of habitat from the upper reaches of stream tributaries in the mountains to the marine habitats of the ocean. The Otahu Ecological Area provides valuable habitat for North Island brown kiwi, Hochstetter's and Archey's frogs, as well as native fisheries.The conservation values of the Parakawai Geological Area are similar to those of the surrounding conservation park land, which is not covered by Schedule 4. Distinctive geological features exposed by past quarrying are considered worthy of protection. The streams of this part of the park have high habitat values for threatened native freshwater species.
These two areas are proposed for removal from Schedule 4.
The Otahu reserve is not the site of the last vestiges of Archey's frog, they are well distributed right through the Coromandel, and at least another spot in the King Country. However, one study found they were dying off to a large extent. This could be due to predators, a fungus that has affected some frog species, or just a general warming (less moist air about). Archey's frog needs moist ground litter to live in. An obvious site for a resurgence in their population would be the Maungatautari Ecological Reserve below Cambridge, which is fenced off and free of all mammals, except the odd mouse. A remnant population of Hochstetter's frog has already been found there. Both frog species are ancient relics of Gondwana, and are worthy of interest.
From DOC:
4.3 ARCHEY'S FROG Probably many thousands occur in total although precise information is lacking. Very locally in the central Coromandel, densities as high as 8 frog/m2 have been recorded (Bell 1994) cf. Hamilton's frog: up to 0.6 frogs/m2, and Maud Island frog: upto 1.3 frogs/ml (Newman 1990). The main threat is continued depletion and modification of habitats from exotic afforestation, farming, quarrying and mining activities. The impact of introduced mammals on
L. archeyi is not fully understood,though goats, cattle and pigs have a detrimental impact at some Coromandel sites(Bell 1985). At Whareorino predation has been recorded on "L. archeyi" by the introduced golden bell frog Litoria aurea, and by mammals, possibly rodents(Thurley & Bell 1994).
Here is the most definitive page on the two frogs that I could find for now, and the two reserves are mentioned. Archey's frog is less well distributed than Hochstetter's, but it would appear that many parts of the Coromandel Peninsular offer better survivable (real) habitat for the frogs at the moment. In fact, it looks like the nearest known occurrence of Archey's frog is about 20km northwest of WKP.
The answer to all of this is obvious. Newmont/Glass Earth could easily become the champions of these frogs, and any other special flora and fauna near their mining interests, because there is no major funding going into conservation in specific areas. It is often done on a voluntary basis, although DOC staff must spend some time looking after these frogs too, but probably on an irregular pattern.
It would be my bet that rats, possums, stoats and other introduced predators would find these frogs an interesting meal. You only have to sit out in the bush or scrub at night-time for an hour to become aware just how nasty the rat population must be (especially if near waterways). It sounds like the frogs are difficult to breed in captivity, so perhaps getting a strong population going on Maungatautari (or any other fenced, protected reserve) would be a good place to start.
Happy New Year everyone, I hope we all get a reward for holding GEL in 2012. Looks promising so far. The NZX and TSX prices are matched up, valuing GEL at just NZ$26mill at the moment. A good time to buy some.
Once all the rain stops and drilling work is resumed at WKP after the holiday break, we should see some more good news. From Vicarage Capital, the South Island prospects are not too bad either.
Game Hen (South Island):
90% interest in a mesothermal shear zone. E-W orientation, with strike length of 760m,
6km shear zone, with a separate 4.7km vein swarm at Hindon. Rock chip samples have
returned several results ~41g/t Au, with up to 71g/t Au at Hindon.
Placer Deposits (South Island):
GEL has a number of deposits, which produce 2,500oz/yeah Au. GEL purchased a 40t/d
float unit, which was refurbished in Q3 2009, and production begun in Q1 2010. With
recent investment of C$1.5M from placer specific investment group, GEL intends to
increase production from these placer deposits to 7,500oz/year Au in 2012. Recovery is
through gravity only, recovering ~3g/t.
Others:
There are numerous other small high grade vein projects located within the Otago
South Island area at various stages of development/exploration.
One of the interesting points here is that 3g/tonne recovered is not a bad grade at all, from alluvial deposits, if the figure is correct. The big GRU#1 (weight 40 tonne) can process up to 100 cubic metres of ore an hour, so yield is about 100 x1.5 tonne x 3g recovered /31 g/oz or about 15oz, so NZ$30,000 worth an hour. It's hard to tell what the operating costs might be, but you'd expect a good profit.
15oz x 2000 hours is 30,000 oz per year from GRU#1, and the GEL target for 2012 is 7,500oz. This would seem achievable, even with large downtime, as three units will be operating.
Note from 30/01/2012: When I queried the 3g/t recovery rate with Vicarage, they promptly removed reference to it from the December article. Other queried figures stayed the same.
what am i missing here? it currently trading at .40 a week ago it was .60c ?
Hello ynot, keep watching GEL in 2012. Most of the shares are traded on the TSX venture exchange, and there is more optimism in NZ for this share at the moment than in Canada. The NZ shares have just been brought down to match the TSX, as they should be. However there is some old money holding GEL in Canada, notably Trapeze Asset Management and more personally, its principal. There is still a connection with SAS, St Andrews Gold. The share is valued well below the capital put in so far, and yet you can see the company is most likely on the verge of being involved in planning a new mine at WKP, with Newmont's superior resources near at hand.
I wouldn't be surprised if GEL becomes a multi-bagger, it has ramped up from a low once already, and has never been in a stronger position, as far as possible gold reserves on its multiple permits.
We just need a few more shares to trade here in NZ, to ensure the two exchange shareprices stay more matched up.
Given that it takes a lot of capital to set up a new mine, it seems obvious that GEL's links with Newmont Mining are one of their biggest assets. NEM:US has a market cap of about 30billion US$, so it's 1,000 times the size of GEL's.
March 2005: John Dow retires as Chairman and MD of Newmont Australia after 3 years in office. He had been with the firm since 1978. Well thought of in mining circles. One of his jobs was to oversee the Martha Mine in NZ.
April 2005: GEL announces JV with Newmont for permit 40767. This is a big block of land mostly under Waihi, right next door to the Martha mine, technically this expired in 2010, but no doubt being kept alive with an extension application.
28 Feb 2007: The WKP permit and others, JV with Newmont announced, 65% Newmont, 35% GEL. Newmont cover all exploration costs.
2008: John Dow appointed independent Chairman of Glass Earth Gold.
2010, 2011: GEL shares move up strongly, in patches, as new drills in the WKP area start to show real promise. GEL beefs up website and forges stronger promo links overseas.
Released overnight for the TSX market: Newmont is drilling at WKP again.
Reply With Quote
Originally Posted by ynot
Bookmarks