Two days ago, GEL was granted six exploration permits, all in Otago, mostly placer type areas. The total area is about 250km2 or 25,000Ha.
The permit names are
Argyle (EP53174)
Ida (EP53180)
West Dunstan (EP53185)
Sparrowhawk (EP53189)
Fruid Burn (EP53190)
Lee Stream (EP53229)
The time available for having a look is 4 or 5 years. Sparrowhawk looks to be immediately useful, being mentioned in despatches.
The normal procedure is to carve out a mining permit from within the EP areas, and some of these will be prospective spots for the GRUs.
No word yet on how the capital raising is going. I assume there is a bit of a shortfall in the bank account to pay the next instalment to Bob Kilgour. If the warrants are not picked up at C35c in big enough numbers, they'll have to do a private placement. Going on past history there will be a sweet deal for investors who put up their hands and take on the risk.
Although with the GRUs getting into full action and no shortage of areas to work over, I don't think there is much risk at all. Can't supply numbers yet with any accuracy, but if L&M mining could use the GRU#1 for over a year (24/7 under lights), then so can GEL. And that's just one GRU, there are three in use.
So in the next little while, we should see the GEL website being updated in the placer area and the permit tables. I'll try to keep an eye on that.
ODT put out this at the start of the month, confirms the need to find the $1.5mill for the payment, or to replace it in the bank account if it was made on time today.
Plenty wanting to buy GEL over on the TSX, but the bid is low, bracketing around C20c. I still think this should be the last time GEL is on its knees over cashflow issues. Onwards and upwards.
The TSX price for GEL ended up slightly below C20c, reasonable volume there. The market is saying that this private placement at 20c should be a fair valuation of the value of each GEL share at the moment.
It is true that while GEL has produced the Q1 MD&A report and filed it with regulatory authorities, you cannot find it on the web except by digging into SEDAR or by looking at my cut-down version futher back in this thread. Neither is there any update to the website from the last two media outputs. Ordinary shareholders are all still very unsure about the details on the GRUs, and of course we will not be told the average grades at each permit, only the total gold ounces recovered. This will not allow shareholders to gauge the profitability of the placer mining, and a big chunk of the predicted profits will need to go to Bob Kilgour under the repayment plan.
Make no doubt about it, this data is critical for an FA evaluation of the company for the next year or two, because as we have seen, mining exploration is done in terms of years of drilling, not in months. Despite my fond hope of Glass Earth using an asset finance company loan or short-term bank overdraft going forward, this has not been the case. The C35c options are now gone as a liability or overhang on the shareprice, but in return the only avenue for fund raising seems to be another firesale of shares.
I have had occasion to borrow money for a business case, not in this league of course. Banks are hard-nosed, and usually, unencumbered land and buildings are the security they will seek. They will not be very interested in second-hand mining equipment, and permits with promise but no immediate surplus income. This is where the private shareholders and the market must step in.
Just as long as we are all aware that the banks, finance companies and even the private placement investors are saying that GEL is not a "no-brainer investment" yet. It's kind of poetic that the current TSX price is C20c. That's the IPO price (2006), but we've had a 1 for 5 consolidation since then. A long-term holder would have done very poorly, we must all learn from that.
20 days after the Q1 report was notified to the market, it's now posted in full with the MD&A, on the GEL website under the financial reports section. Still very hard to dig the data out from within a big long text listing.
The GEL price is on the move to NZ29c, which is curious since the Canadian price is stuck hard on C20c or lower. So while all of the volume activity happens on the TSX, some NZers are paying 20% more for the share over here. And I doubt whether we can lead the share up.
My attitude at the moment, is that Glass Earth has the cash they needed to temporarily make good on the deal they struck with Bob Kilgour. Like OGC before them, they saw the prize and simply sold more shares at a lower price to get the required capital, diluting those of us who are longer-term holders. I know they tried hard to get the C35c options picked up, but this sort of marketing needs to be sustained over months, not weeks.
Now if we wanted to, we should be able to buy raw shares near C20c (without the future warrant sweetener offered to the private placement investors), and I am doing so, over on the TSX.
I checked the numbers, if the floating GRU in use here is similar to GRU#1 owned by Glass Earth, the grade is at best 0.2grams/tonne if it's used about 15 hrs/ day. Lower grades on average (less than 45oz per week), means it's still a tough way to earn a living.
The actual records for GEL's permits are now differing from the website's table by a significant amount. I've attempted to attach a pdf of the spreadsheet I keep current, based on the NZPAM public filings.
So the current details are:
Total area in unexpired permits is 1376 km2, at a cost of about $465,000 a year in fees.
Also applied for, another 7388 km2, see table.
While I wouldn't think GEL is allowed to do any exploration over these applied-for areas at the moment, in some cases they have held the permit previously as part of larger areas, so they have kept other parties out of the areas of interest.
Note the Komata area has been dropped, which is a large permit that surrounded the Talisman Mine across from Waihi. That makes it obvious that the latest map associated with the Q1 MD&A is incorrect, and the phrase (oft-repeated) about the total area under exploration is also technically incorrect.
While the MD&A report is more accurate, here's the phrase from the very latest press release, which advises that a clip from the editorial video has been posted around the web.
Glass Earth Gold is one of New Zealand's largest gold exploration companies, with its experienced geological team exploring promising gold prospects across a land position of approximately 10,000 square kilometres, in both the North and South Islands.
The "work in progress" page on the website was a good idea, except it hasn't been updated for 6 months..
I am putting all this in one place at the moment to illustrate that, contrary to their legal requirements as a listed company, management is not being proactive at supplying timely information to the market, and is regurgitating old data without checking for accuracy. And that's a polite version of what I'm seeing.
That appeared to be hard work, and about 1/3 of the funds were from investors introduced to the company by other parties, so there was a commission fee of 6% paid for those. Note that the company is still apparently exploring near enough to 10,000 sq km....yeah right.
GEL shares are selling for about C18c to C18.5c overnight, small volume.
Around 14 June 2012, the company Goldmines NZ Ltd shed Bob Kilgour as a shareholder, and on 19th June Dunstan Mining Ltd was renamed Glass Earth Mining. Shareholding status at the Companies Office is now 100% Glass Earth Gold's. GEL still has to make 25 monthly payments (in gold maybe?) to complete the deal. Peter Liddle and Simon Henderson are directors of both companies.
Well, my post must have worked. The GEL website has been updated on the current projects page, as at yesterday. There is no new data as far as I can see, it's just up to date again, for the first time in a few months. The current permits are also shown, along with their areas this time, in Ha or km2. No total, but if you add the granted permits up, it's about 123,436 Ha, or 1234 km2.
Just a few words on each major exploration area. We'll have to wait for any new info. I wonder how the GRUs are going at Drybread?
From the ODT, nothing new, but there are the payments stretching out for 25 months.
Another earlier article adds some news: the three GRUS require about 20 staff to run them, and the target is 110oz of gold a week. GRU#1 should be almost running by now, based on the timing in the article.
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Originally Posted by Vtrader
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