AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

yeh i agree with ez, if your looking for something long term (lets face it, thats what GEL is) its a very good PP offer. Think of it logically, this is the first time in the companies history where it is generating a fairly decent income and with time the costs of generating that income will reduce once procedures are put in place and the funding required to start this measure isnt listed anymore.

Also im hoping something is going to eventuate from WKP within the next 24 months, all the signs are there its just a waiting game now. But thats just my opinion, I'm a young investor and GEL was one of my first purchases so i think i may be a little attached

I haven't been investing in shares for that long either, Bucko. Certainly this company keeps me interested, always something going on. What little I know about private placements could be written on a postage stamp, but it appears there is no minimum subscription amount, and as there is no prospectus and you're buying new shares, there is some kind of a qualification form to fill out. I would expect McDouall Stuart to be able to supply further details, as they handled the IPO.

[elZorro]

Yankiwi's patience pays off again, fair enough. At least none of us can say the share is illiquid at the moment. My attention is on the placer, because this is an area that GEL could use to maximum advantage during difficult financing periods. I wonder if they'll think about running longer hours, and with more machines. Here's a bit about how placer and gold is formed, from a point of view of finding nuggets.

http://www.nuggetshooter.com/article...formation.html

Drybread only has fine gold placer, which implies that the hardrock deposit it came from was in wider veins, rather than shorter and smaller, distributed ones.

[drp]

GEL could fit what's been publicised about the RAM 'portfolio' - do you suppose this is the receivers dumping it to fund the process?

[elZorro]

GEL could fit what's been publicised about the RAM 'portfolio' - do you suppose this is the receivers dumping it to fund the process?

It looks more and more like GEL is going for another PP hard on the heels of the previous ones. The TSX indicates a price.

[bucko]

Hey Question guys from a noob. How does one become an accredited investor? I emailed GEL in regards to the PP and this is the response i got:

"Thank you for your interest in Glass Earth Gold financing. In order to participate, one needs to be an accredited investor and fill up the subscription agreement, with funds wired to Glass Earth directly.
We are intending to close this financing this week (likely Thursday) and the maximum we want to raise is $3M. There is no minimum purchase.

If you would like to participate and is an accredited investor, do let me know how much you would like to participate and I will send you the subscription agreement to be completed.

[elZorro]

Hey Question guys from a noob. How does one become an accredited investor? I emailed GEL in regards to the PP and this is the response i got:

"Thank you for your interest in Glass Earth Gold financing. In order to participate, one needs to be an accredited investor and fill up the subscription agreement, with funds wired to Glass Earth directly.
We are intending to close this financing this week (likely Thursday) and the maximum we want to raise is $3M. There is no minimum purchase.

If you would like to participate and is an accredited investor, do let me know how much you would like to participate and I will send you the subscription agreement to be completed.

I don't know the full details Bucko, but it looks like you need to be not an insider, not a relative of directors etc, earning good money and have some assets behind you, and/or have a history of investing with the company. No harm in asking for the forms to be sent anyway. Try McDouall Stuart or any other broker. They'll be very polite, there's 7% commission and warrants for a bit of paperwork as far as they are concerned. But are you able to deal directly with GEL as you imply in your post?

Delboy, yes it's tough out there in the spec shares. A bit more exciting than established companies though. I'm still learning too.

[elZorro]

Cash flow strengthens for Kiwi gold explorer

Simon Hartley — 5 December 2012
Small scale gold miner Glass Earth Gold Ltd (TSX-V & NZAX: GEL) has tripled revenues from quarterly gold production to beyond more than $1 million and estimated the present quarter will make further gains.
Glass Earth has made at least eight repeated, successful capital raisings to spend almost $40 M in the past half year of exploration and acquisitions around the country.
Achieving revenues from alluvial gold operations in Central Otago have been crucial to boost its wavering cash flows.
Glass Earth, which raised $3.7 M in private Canadian placements last week, said for the quarter to September it had revenues of $1.07 M, compared to $349,000 for the previous quarter.
The company posted an after tax loss of $456,000 for the quarter, compared to a $670,000 loss for the same period last year.
It doubled its gold production from the alluvial gold operations in the Manuherikia Valley in Central Otago to average 70oz-80oz per week from its two recovery units.
Glass Earth chief executive, Simon Henderson, said the higher gold production was achieved in some lower grade areas and both gold recovery units were now working toward higher grade ground where further production increases and efficiencies are anticipated.”
At the end of June, Glass Earth had cash in hand of $1.25 M, which by the end of September stood at $522,000. For the nine-months to September, Glass Earth achieved gold sales of 1,595 oz.
Henderson said the cash flow from operations was covering general and administrative expenses and modestly adding to its exploration budget at the WKP prospect, north of the Martha mine at Waihi in the North Island.
The funds raised last week will be used to further explore gold and silver prospects in the central North Island, beginning with a minimum 5000 metres drilling programme, in a joint venture which holds options to purchase the 30 square km block being acquired from Canadian company Eurasian Minerals Ltd.
To buy-out its former 50% joint venture partner from the Central Otago holdings, Glass Earth made a $500,000 cash payment, issued 2.18 M shares, paid cash of $1.5 M in June and agreed to 25 monthly payments of $80,000.
*Simon Hartley is senior business reporter for the Otago Daily Times.

I think there is a mistake in this article, as GEL has spent a bit over $40mill since 2006. They don't have the cashflow to spend $40mill in half a year. However the text implies the latest PP has been successful, with approx C$3mill being raised.

The assays for WKP35 have been released. This was the first drill to test the East Graben fault, and the first bit of data released earlier showed a decent, but not spectacular, grade near the fault.

http://www.menafn.com/menafn/f029574...t-WKP?src=main

While it doesn't sound much, the central part of the drill went through a 220 metre section that was a shade over half a gram of gold a tonne on average. It's a large ore body with the gold being easily recovered, maybe that means heap leaching. At Martha Hill and Macraes, the gold grades they send to the mill may be higher than this, but they have moved ten to thirteen trucks of waste metal to get at one truck load of ore.

WKP36 is a drill in the opposite direction heading into a different structure. WKP37 will be interesting, if it was started in early November it may be completed, and the assays on their way to the lab. No word about where they'll drill next.

Newmont's Correnso hearing has started. No mention of WKP as a backup at all.

http://www.stuff.co.nz/business/indu...esidents-fears

[gonzo56]

Come on GEL, what are you up to?

...it's the end of the month.

[bucko]

more great news from the WKP drillings announced on NZX today,

Makes me wonder how much more exploration drills are going to take place before they make the plunge to open a mine site? Simon Henderson has said evrey single drill that has taken place has had amazing results....

[elZorro]

Gonzo, Yankiwi, you were both right, the quarterly report was technically out before the end of the month.

http://www.marketwire.com/press-rele...el-1732154.htm

This link doesn't include the MD&A report, which will become available on SEDAR first I'd guess. As indicated in the latest background pdf posted in the GEL website, gold production has increased significantly. The icy winters in Otago naturally limited output over those three months, the bigger GRU#1 took a fair while to get going properly, and there must have been a lot of setup costs, which the report says were expensed in the quarter. So this is a different treatment from exploration of permits, where the cost is only expensed once the permit has been surrendered.

The gold production was worth over C$1mill, but cost about another $300,000 of cashflow on top of that, in the quarter. That's probably a really good result, all things considered. I'll wait for the MD&A data.

Revenues from mining operations increased significantly for the quarter to $1,079,000 (June quarter: $349,000) but was less than budgeted due to the extended commissioning of the GRU#1 plant and lower 'wash' grades for both sites. Mining and processing costs were higher during this settling down process which coincided with 2 of the 3 months of winter in the South Island. Gold production in September and October was considerably higher than the winter period and the December quarter is expected to increase further.

All commissioning costs have been written off as incurred. The increased production in September - November has resulted in a turnaround to monthly profits. Attention will now focus on costs reduction, which combined with a move to higher grade areas for both sites, should see a marked improvement in cash generation and profitability.

This quarterly report was preceded by another press release - there is another Private Placement happening at the moment. The buy-in is at C16c, with future 1 for 1 warrants at C25c. The aim is to raise C$3mill for Neavesville and WKP exploration work. This should all be completed by December 6th.

It's not immediately good news for current GEL shareholders, but I've followed the story of this company for a few years. Now a fairly useful employer in NZ, has trained and offered employment to geologists, ramping up gold production with its own assets, has big interests in two or three promising mine sites near Newmont's Waihi mine - we could all be looking at a great opportunity for capital gain from this point.