AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

The February 2011 newsletter from Glass Earth might show the start of pitting tests at Drybread (somewhere in the Manuherikia Valley), as GEL didn't have a mining permit for it at that stage.

http://glassearthgold.com/i/newslett...wsletter13.pdf

There is a photo there of the other reasonable-sized GRU (GRU#2) that Glass Earth Mining now owns. (No change to the company records has been done yet). Drybread permit currently has a pilot plant (GRU#3) operating on it, however there has been some kind of teething problem alluded to. But this plant will probably do not much more than point out where to initially site GRU#1 in June. No doubt there will be some earthworks to create a pond for it to work in.

Meanwhile, the Gunclub permit is running with GRU#2, producing about 2,000 oz per year. This permit has been called an alluvial placer area. This GRU is big enough to require a digger to feed it, but it is smaller than GRU#1 (photo from the Glass Earth website). GRU#2 has to sit on a gravel foundation above a tailings area, whereas GRU#1 floats in a pond.

[elZorro]

The method of Youngson and Craw (1999) seeks to quantify the transport distance of gold grains. It cannot allow for glacial movement, as ice transport doesn't change the gold much. I found this paper about the Nokomai area, and of course Glass Earth already has a permit application there. But a part of the discussion is very interesting, and should apply to Drybread.

http://www.nzpam.govt.nz/cms/pdf-lib...e/youngson.pdf

Transport distance estimates 2000 New Zealand Minerals & Mining Conference Proceedings • 29-31 October 2000

Rounding, flattening and folding of detrital gold preserves a cumulative record of the deformation it undergoes during transport from a primary source to the ultimate site of deposition. Particle flattening is particularly important, because it progressively lowers the surface area-to-volume ratio of gold which, in turn, enhances the entrainability of particles in a given current. On-going flattening thus allows gold particles to be progressively transported to lower-energy parts of the fluvial system (Youngson & Craw 1999).

Consequently, there is a predictable relationship between the maximum flatness of gold particles and maximum transport distance in gravel bed-load rivers. This has been quantified for the Arrow-Kawarau-Clutha River system in Otago, where the gold sources are well-constrained (Youngson 1998; Youngson & Craw 1999), and similar relationships have been established elsewhere (Herail et al. 1990, Knight et al. 1994).

Fluvial transport distance estimates for Nevis and Nokomai gold (Table 1) were made using the method of Youngson & Craw (1999). This method relates fluvial transport distance to the maximum flatness index for gold particles in a particular sample [F.I.=(a+b)/2c, where a, b, and c are the mutually perpendicular long, intermediate and short axes of the particle]. The method cannot account for any glacial transport, however, as little or no flattening of gold occurs during such transport.

The small proportion of relatively more deformed gold particles in some Nevis samples has higher maximum flatness index (18–25) than that for the bulk of the gold (<15) in those samples (Table 1). Maximum transport distance estimates of 20–30 km for the more flattened gold is consistently greater than the <10–20 km estimates for the bulk of the Nevis gold (Table 1), and supports more distant primary sources and/or a recycling history for the more deformed gold. Conversely, the shorter transport distance estimates for the bulk of the Nevis gold are compatible with our inference of primary sources within the western tributaries of the Nevis. Similarly, low maximum flatness index (<15) and short (<10–20 km) maximum transport distance estimates for a-phase Au-Ag-Hg alloy in all samples upstream of the alluvial plain in the lower Nokomai (Table 1) support our inference of primary sources in the upper eastern tributaries of the Nokomai.

Furthermore, 15–25 km estimates for α-phase Au-Ag-Hg alloy within the alluvial plain are also consistent with derivation from such sources. The 25–40 km fluvial transport estimates for Au-Ag alloy in the abandoned channel and alluvial plain in the lower Nokomai are enigmatic, firstly because the Nokomai valley is only about 20 km in length (Figure 3), and secondly because detrital Au-Ag alloy has not been found elsewhere within the catchment. The fluvial transport distance estimates require either considerable fluvial recycling of Au-Ag alloy within the Nokomai, or a former connection with an Au-Ag alloy source outside the present Nokomai catchment. The absence of Au-Ag alloy elsewhere in the Nokomai does not support the possibility of local Au-Ag sources or recycling within the catchment.

Amazing. Just a quick inspection of the gold particles and a lab analysis can reveal that some are recycled, and some are simply weathered out of rock nearby, or several kilometres away. The maths up there doesn't look too hard either.

[elZorro]

The chunkiest of the gold grains from Drybread might have an F.I. of under 10, so if similar to the Nokomai area, they will have been moved less than 10km.

Glass Earth holds permit EP53182 around Drybread, and about 6km futher north is the boundary of a big permit application from them, PP53297. Others have moved in with their own permits in the area. Southwest of Drybread is a smaller mining permit MP41748 (Matakanui), now owned by Hawkeswood Mining Ltd. It's due to terminate in 2013. Andrew Hawkeswood has 30 staff, some in Auckland in other operations.


http://www.nzrallychampionship.co.nz...p-in-wairarapa

[elZorro]

The TSX and news services were blessed with news overnight, and the ODT has helpfully beaten the Glass Earth website to a story about a hard-rock find in Otago. This is adjacent to the Garibaldi Diggings. GEL's Maniototo permit EP53183 curls around the base of the mountain ranges here, looking for more eluvial/alluvial deposits. They've found some quartz reefs.

http://www.odt.co.nz/news/dunedin/20...gold-discovery

There are some photos related to the news release, from GEL's website. It doesn't seem to be listed as a news release on the NZAX yet.

http://www.glassearthgold.com/s/News...eportID=520319

The Maniatoto find is about 30km southeast of Drybread, on the edge of the range mentioned.

The other news is that the option date for the May shares at C35c has been extended to match the June deadline.

From NZResources:

Potential hard rock target for Glass Earth in Central Otago

Simon Hartley — 25 April 2012
A fourth potential gold discovery is being explored by Glass Earth Gold Ltd (TSX-V & NZAX: GEL) in Central Otago with plans afoot to continue trenching, then to move towards a drill programme.
Glass Earth at present has two of three alluvial gold production units operating in the Maniototo area with the third scheduled to get under way shortly, the trio targeting a quadrupling of weekly gold production to 100-110 ounces; the company's sole cashflow.
Late last week Glass Earth announced the partnership with Newmont Waihi Gold would spend another $4 million on drilling the WKP gold and silver project near Waihi in the Hauraki goldfield.
At the new fourth site in Otago, on the Little Rough Ridge in the Gimmerburn area of Maniototo, Glass Earth has indications of gold deposits in bands of both quartz and schist rocks, following about 600 metres of digger-trenching to depths of 2-3m.
Glass Earth chief executive Simon Henderson said Little Rough Ridge is adjacent to the historic Garibaldi diggings.
“This new discovery is a turning point in Glass Earth's hard rock gold exploration in Central Otago,” he said.
The discovery attested to the science-driven exploration programme focused on discovery of gold deposits similar to Oceana Gold's 7.2 million ounce Macraes gold deposit in the metamorphic terrain of Central Otago.
Earlier rock chip and soil sampling around Little Rough Ridge was followed up by the about 600m of digger trenching.
Glass Earth has spent more than $35 M in mainly South Island exploration in the past five years and in March posted a $NZ2.13 M loss for calendar 2011. However, it retained $C3.6 M cash for ramping up its Central Otago gold-extraction programme.
Henderson said income from alluvial mining this year -- which in calendar 2011 was $C316,000 from a former joint venture near Alexandra -- would enable the company to continue trenching and initiate a drilling programme; using its own drill rig.
“The plan is to continue trenching then begin drilling once the width and length of the system is known,'' he said.
In February Glass Earth bought out its southern joint-venture partner for $4 M cash and scrip, covering one tenement in the Ida Valley and two in the Manuherikia Valley near Alexandra; taking over all alluvial gold production.
Unlike Glass Earth's other three alluvial production areas, Little Rough Ridge is potentially a hard rock discovery.
Henderson said until the estimated gold resource was proven, no decision would be made on whether it would remain a 100% Glass Earth-owned venture or to seek a joint venture partner, to share in the higher production costs of hard rock mining.
*Simon Hartley is chief reporter for the Otago Daily Times.

[elZorro]

There is more detail on the GEL website regarding the equipment held by Glass Earth Mining. Includes 6 excavators, 2 dump trucks, but no picture of GRU#3, this is still a mystery. There's a cryptic note about the throughput, I assume each GRU can put through up to 70 cubic metres per hour.

http://www.glassearthgold.com/s/Proj...eportID=450554

[jonu]

Hi el Z

I take it this morning's announcement is seperate from that on your earlier post. Garibaldi being adjacent to what you were quoting. If so things are certainly positive

[elZorro]

Hi el Z

I take it this morning's announcement is seperate from that on your earlier post. Garibaldi being adjacent to what you were quoting. If so things are certainly positive

Hi Jonu, this is the same news that was posted on the TSX on their 23rd April. Someone must have missed posting it over to the NZAX. But yes, a hardrock find is good to have, very shallow and probably picked up with the electronic systems they use. The Garibaldi Diggings area looks to be a sheep farm now, the original discovery was by an Italian family.

Nice change to see the share moving up this week.

[KiwiGeologist]

Does anyone know if there is future drilling planned for the Garibaldi? The big question for me is; with a hardrock prospect at shallow depth is the mineralisation supergene or primary mineralisation? I guess the only way to find out is to poke a couple of holes into it.

[elZorro]

Does anyone know if there is future drilling planned for the Garibaldi? The big question for me is; with a hardrock prospect at shallow depth is the mineralisation supergene or primary mineralisation? I guess the only way to find out is to poke a couple of holes into it.

Welcome to ST KiwiGeologist, I cannot answer your question because I don't know what the two types are yet .. but the press release implies they'll do some more low-cost trenching and think hard about a drilling programme.

Data collected from a survey of Otago had identified shear zones similar to the Hyde-Macraes shear zone.
On-ground exploration had led to the discovery, which Glass Earth said was characterised by a network of quartz veins from which systematic soil and bedrock trench samples had returned grades ranging up to 16.1 g/t Au.
The zone of interest is 900 metres in strike length and 300m wide.
Glass Earth said it would finalise additional fieldwork to plan and recommend a drill programme.

It's a big zone of interest, that's for sure.

[KiwiGeologist]

Thanks for the welcome elZorro.

16.1g/t is a good grade even if the veins are narrow. In simple terms, supergene is where water percolates down through the top (weathered) part of a rock formation and concentrates minerals at the base of the weathered zone. This area at the bottom of the weathered zone is now enriched and would have higher mineral grades than the rock below (the primary mineralisation). Sometimes the difference in grade between the supergene zone and the primary zone is substantial. This leads to uncertainty as the grades in the supergene zone may not accurately reflect the grade of the primary mineralisation. A supergene zone may not contain enough material for economically viable mining.

The only real way to find out would be to drill it, probably using diamond ($$$).