AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

GRU#1 looks to have two circular jigs on the underneath of it, see jig video. The same arm drives both jigs, in reciprocal motion.

Here is a modern jig set with electronic control.

http://www.rmsross.com/overview/circular-jigs.html

The stroke height and stroke speed of the jig is critical for the capture of fine gold, and needs to be tuned for every prospect, along with the water flow, mesh sizes and table angles. This would be hard to do if they're all mechanical adjustments. I don't have a clue as to what the two GRUs are using for specific equipment, so we'll have to wait and see what is reported.

1995 basic data on jigs.

[elZorro]

Glass Earth did quite a bit of moving today, but I can see no news kicking around. In a sign that the head office has been busy, the permits table was updated yesterday. According to my spreadsheet, GEL now pays only about $175,000 in fees for the permits, down from what could have been over half a million. About 2,800 km2 in permits, looking to add another 1,100 km2 more.

Dropped are 50841, 53378, 53174, 53380, 53911, 53185 and 53182 which is the large space around Drybread has been halved. So GEL are not going to mine the West Coast Beaches (a good decision I reckon) and have pulled back from all West Coast positions. Argyle is gone, also Whataroa River, West Dunstan. So at the moment there are about 23 permits to work on, still a large undertaking, but more manageable.

Why the sudden changes now? It could be a sign that there is enough potential in just these permits, to keep GEL staff working hard. In the same way that GEL have looked over some areas after earlier teams have done some prospecting, other firms can now look at those areas that have been dropped.

[ynot]

hi ez. was only $11k volume but yea, somthing could be up. wink wink.

[elZorro]

hi ez. was only $11k volume but yea, somthing could be up. wink wink.

Hi ynot, 11k of volume only indicated a building interest in the share, so it was interesting to see quite good volume on the TSX overnight, the price moved to C26c (NZ32c), and there are not many sellers left.

It's a long wait for the news, for keen holders of GEL like me. On the law of averages, and if they are not wanting to be seen as tardy again, management will need to produce at least one press release this week. We're already well past early September. The news could cover WKP drills or placer recovery results, or both.

[elZorro]

OK, still no news by this morning, a small chance it'll pop up on the TSX after Friday trading, but I don't think so.

The message from GEL management might now be: "We hope to bring you an update on progress, sometime in September".

I would guess that Simon Henderson (CEO) has no interest in the subtle games of the sharemarket, and for a listed company, risk-based funding for an eventual positive return for all parties is the aim. However there are certain written and unwritten rules for guidance in the treatment of shareholders - big and small. GEL management made every implication in the Q2 release that there would be news on several fronts, early in September.

The market has clearly anticipated something appearing last week and this week, and two weeks is a long time in the sharemarket. So many other shares to look at. Other listed companies that do have a bit more feedback, and are a bit more honest in their timelines.

The GEL permit table is still changing. PP50950 has expired, but GEL has lodged a very similar (EP)54765 application to replace it. 54765 and EP53184 are two permit areas just over the top of the Macraes mine area near Dunedin - they're still very keen on this area.

As implied on the 17th Sept, permits 53174,53911,53185 and 53378 are gone-burgers. Some applications to reduce the area of about 4 permits are still in process.

[elZorro]

At last, here's a release about WKP. The rest of drillhole WKP31, which wasn't terrific but OK, and each of the next three holes has hit gold, as per usual. Better grades here, some of them are short bonanza grades, and the next drill WKP36 under way.

http://tmx.quotemedia.com/article.ph...&qm_symbol=GEL

WKP 35 drilled into the Eastern Graben structure(EG zone) intersecting significant quartz veins and strong mineralisation features - assay results are awaited;

The map of the drills:

http://glassearthgold.com/i/newsrele...12_WKPMap1.jpg

[elZorro]

The new map of the WKP drilling area shows the three main zones, which have been adjusted from earlier communications. In addition there is a new zone, the EG or Eastern Graben Zone. There is only one drill into that space, WKP35, yet to be reported on. It's a big long drill, and another one 200mtrs south is proposed, which could be WKP37. WKP36 is also a long drill. With 200mtrs between drills, I don't think that would be called infill drilling, it's still exploration. The drilling spots are heading south, these are in rugged terrain, and have not been drilled before. Scientific papers written on the WKP area have always pointed out the potential in the undrilled southern area of WKP.

The brief note about WKP35 implies that there were very good visual characteristics in that drill core, so the report on that will be interesting later on.

Simon Henderson, President and CEO of Glass Earth Gold, commented "Exploration within the WKP area continues to demonstrate that it is a large permissive gold system with potential to host significant epithermal gold deposit(s). The current 5,500m program is testing both northern and southern extensions of known targets, and probing the Eastern Graben margin which has shown promising resistivity features indicative of a major fault structure."

The grades of the other two drills are consistent, some real hot spots, and 111 metres of a mineable grade is not to be sneezed at. Gold is very rare, it's priced that way.

Missing in action from the press release: progress upate on the cashflow from the placer mining. I get the feeling the news will be staggered over the next few weeks. Good start here, anyway.

[elZorro]

With the lack of any exceptional news out today and the 18% SP drop on increased volume on the TSX overnight, I sold off my parcel with a 10% profit after fees.

It's quite interesting that the SP on the TSX closed down 18.5% to .22CAD but the NZX was up 5.7% to .37NZD.

If $.22CAD = $.265NZD, is the NZX 40% overpriced or the TSX 40% underpriced?

With most of the GEL shares traded on the TSX I felt it was wise to follow their lead and lock in a bit of profit.

Good luck to holders and I'm sure I'll be back in if the NZ SP get back to the .25 to .30 range and in the two markets are back closer to a balance.

Yankiwi, not a bad short-term position - that we've seen you take before. I have started to realise that if you can't afford to hold onto goldie shares for a reasonable length of time, best to try something else. Reading between the lines on the latest press release today, there could be a bit of insider excitement brewing about drill WKP35. Every drill that goes into the rock at WKP finds gold. It's a rare element, so this is a good thing, right? I'm not sure what the term 'permissive' means when it comes to gold prospects, but the four words "large permissive gold system" have been carefully chosen. That press release is bound by TSX rules.

The TSX market last night might well have been driven by similar issues to those Yankiwi has - should I take a small profit now, or wait for a bit? I agree, these are not brilliant intercepts, but they are consistent. Mining of WKP (if planned) is a while off, and I'd suggest, will follow success at Newmont's Correnso.

Meanwhile we wait for reports on the placer mining. Three GRUs are working on the Drybread permit, and if they are able to recover reasonable grades, GEL should be awash with cash before long. Enough to explore all of the top quality permits that GEL still has in its portfolio.

Yankiwi, have you done the maths on the value of a few million dollars from possible placer returns in Glass Earth's bank account?

[elZorro]

I had a look at Wikipedia, the incidence of gold on average in the Earth's crust is around 0.0031 to 0.004 ppm. 1 ppm is one gram per tonne of crust.

This means that payable placer grades (0.2g/m3) are already 25x more concentrated than the average crust (and it's free gold), and mining grades at say 0.6g/tonne are 150x more concentrated than average. Bonanza grades are of course rare, being above 30 g/tonne, and are 10,000 times more concentrated than normal.

Looking at the WKP drills again, this is promising. NZResources wrote an article.

Fresh drill results enhances WKP discovery

Ross Louthean — 26 September 2012
The latest round of drilling results from an epithermal gold-silver deposit near Waihi in the Hauraki goldfield has re-sharpened interest in the project.
Junior partner Glass Earth Gold Ltd (TSX-V and NZAX: GEL) detailed the progress assays received from a new 5,500 metres diamond drilling programme on the WKP project in which managing partner Newmont Mining Corporation is operator and holds a 65% stake.
Newmont subsidiary Newmont Waihi Gold operates the open cut and underground mining operations at Waihi – New Zealand’s only large hard-rock gold operation on the North Island.
Glass Earth said hole WKP32A had an intersection of 0.5 metres grading 61.3 grams/tonne gold and 19.4 g/t silver within a halo of 111m @ 0.6 g/t Au and 1.8 g/t Ag.
Hole WKP33 produced 8.2m @ 6.6 g/t Au and 2.7 g/t Ag.
Glass Earth Gold’s managing director Simon Henderson said the current drill programme, which began in April, has delivered encouraging results from drill holes WKP31, 32A and 33, and confirmed the tenor of high grade veins within a broad lower grade central mineralised central zone.
This drilling phase aims to confirm the major structural controls on mineralisation, with WKP35 “already providing further new and encouraging visual evidence of a major mineralised structure on the EG (Eastern Graben) zone, allowing a focus on resource definition in follow-up drilling campaigns.
Glass Earth said that back in February drilling on the WKP T-Stream high grade vein WKP 31 defined an interval that has been followed northwards in drill holes 33 and 34.
Significant results not previously reported from 31 include 6m @ 1.5g/t Au and 1.5 g/t Ag from 232m down hole. A previously announced result from WKP31 was 9.7m @ 17.2 g/t Au and 22 2 g/t Ag.
On the project’s Central Zone, drill hole WKP 32A tested the southern extensions and into the Western Zone anomaly at depth, demonstrating that this broad zone of mineralisation is persistent to the south, with narrow high grade veins (0.5m @ 61.3 gm/t Au, 19 g/t Ag; 1.2m @ 20.3g/t Au and 12.4g/t Ag), residing within a broader.
This broad zone of +0.5 g/t Au mineralisation is persistent over 750m.
“Exploration within the WKP area continues to demonstrate that it is a large permissive gold system with potential to host significant epithermal gold deposits,” Henderson said.
The WKP prospect covers a 3 kilometre by 5 km mineralised alteration zone, 10 km from Newmont's producing Waihi mining operations where 10 million ounces of gold equivalent has been produced. It is also 5 km north east of the Golden Cross mine that produced 634,000 oz of gold.
The budgeted cost of the current drilling for the joint venture is about $C3.3 M ($NZ4.1 M).
The WKP epithermal system has magnetic/alteration characteristics similar to the Martha epithermal system and has open-along-strike potential of at least 1-2km.

The highlighted bits are comments not reported in the press release. WKP has hotspots of high grade in a lower grade orebody. So does Martha Mine, and no-one forgets how many Moz came out of there. Special mention of WKP35, it must have been a great-looking drill core. They'll be following that up, for sure.

Mind you, there are talks of 20 job losses at Newmont's Waihi Gold. And they're talking about scaling back on exploration. Just as well WKP doesn't cost much at the moment, and has a huge potential.

http://www.nzherald.co.nz/business/n...ectid=10836378

[elZorro]

I think it's possible there are two drill rigs running up at WKP. WKP32A and WKP35 are collared at the same spot, which is 600-700 metres south of WKP33 and WKP34, collared together. Only half of the drills from each spot have been reported on. The southern extension drills also appear to be a lot longer.

In April Simon reported that one of the jobs of this programme is to test the southern extensions.

http://www.highgrade.net/article/201..._beyond_Martha

We've been told that WKP36 is being drilled. The rig had to be uplifted from the WKP35 collar and resited no doubt. This makes it possible that WKP35 was drilled by early August, at which time Jeff Huspeni had the announcement at Diggers and Dealers:

Higher grade targets identified at WKP

Ross Louthean — 8 August 2012
Operator for the exciting WKP gold discovery near Waihi, Newmont Waihi Gold, has been able to identify potential high grade zones at the prospect which may accelerate exploration.

At the Diggers & Dealers Forum in Australia’s gold capital of Kalgoorlie, Newmont Asia Pacific’s senior vice president Jeff Huspeni told NZResources.com that recent diamond holes into the prospect had identified what could be a feeder zone.

There would now, he said, be a focus on adding grade to what appears to be a large system.
Newmont owns 65% of WKP with the balance held by active New Zealand gold explorer Glass Earth Gold Ltd (NZAX & TSX-V: GEL).

NZResources.com suggested to Huspeni that WKP was perhaps the most exciting emerging gold discovery in New Zealand. He did not disagree.

The WKP 'EG' zone is a completely new one, there are no legacy drilling locations on the lower parts of it. The other zones have been relabelled and the latest map put up on the GEL website. This zone lies beside a fault, on the other side of which is Andesite, and the zone is over a Rhyolite Flow. If the EG zone is what's termed a feeder zone, the next drill about 200mtr south would confirm it (WKP37?), and the grades could be impressive. Guess we'll have to wait and see.

More detail in the paper from Christie et al: http://glassearthgold.com/i/pdf/Christie_p137.pdf

Very clear indications that the best drill results obtained in 20 years of legacy work on WKP were DDH20 and DDH23. These were both about 100mtrs above WKP35, heading in the same direction. The gold is normally hosted here in a NNE trending rhyolite flow (snap) with intrusive andesite nearby (snap). Dr Christie clearly suggested "drill to the south of here" in his paper. He almost put an X on the map perhaps.