AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

Did you used to be a spy satellite analyst elZorro? Some mighty eye you must have there, along the lines of Cuban Missile Crisis spotting!

Well, I couldn't spot the staff facilities, so they must be very small! If you use Omakau Lauder Creek Otago as keywords and then zoom right in on the 5-way intersection, you can have a look yourself via Google Earth, straight off the web (satellite view of maps).

I think Drybread is good practice for the GEL team, it's safe in that some profit is being made, it's getting better over time, and if they take that positive experience and apply it to some easier ground with higher grades, shareholders won't be shelling out for the hard-rock exploration costs any more. Certainly these shots from above show that they are looking very organised and professional.

[elZorro]

Bucko, I'm not an accountant, so don't take any of this as gospel. From memory on the financial reports I read, the writeoffs in the annual books were mostly exploration properties let go from their permit holdings. At that point all the exploration costs have to be written off, previously they were held as an asset (non-depreciated). But this also means that on the books, WKP is not held at a very high capital valuation, because they've not spent much on exploration, a few million (35% share). Of course if it really does hold in the region of at least 3Moz of gold as we've been advised indirectly, it's worth a lot more than that, once serious talk of mining it starts. A preliminary estimate of the resource has to be provided to NZPAM within about a week. This is the first time one has been prepared on the permit.

The placer operation and equipment is different. Dunstan Mining (Bob Kilgour) is being paid for the purchased older plant in instalments that come off the gold production profits. This remainder owing would be a liability, and the full asset cost of the equipment GEL owns will be on the books as assets, but it can be depreciated each year. However some of the NZ$5mill purchase price was for exploration permits in the South Island, and quite a few of these have been let go, so would be part of last year's writeoffs.

At 9c, GEL is worth NZ$9.5mill on paper, so that is a silly price IMHO. The underrated NTA is plus 16.5c per share, last year losses were 18.5c a share, but that's a paper figure too, a catchup on some exploration that didn't make it in the end. Quite a bit of the other exploration is looking very promising.

What NZ company do we know that has an NTA of 32c a share, losses last year of 11c a share, faces global competitors for market share, and yet sells for $13.50 a share, with an MCap of NZ$1.578 billion?

Why the difference in valuation? It's an easier company to understand, more connections to the life of investors, and the company knows how to dress up their proposition.

In Q1, Drybread production should have improved, and for most of it there was a good gold price. I'm expecting to see a good paper profit there, maybe a few details about new equipment being used, what new steps are being taken with the lower PoG to keep the profits flowing.

A site visit would be a great PR exercise for the company, I'm just surprised they haven't organised one earlier. I would think that larger investors have already been shown around the permits. I'd be interested in having a look too.

[elZorro]

No extension for the WKP permit has been filed yet, not as far as the NZPAM records show anyway. I'm picking it'll show up on Monday.

GEL is looking for some more excavator operators.

http://jobs.odt.co.nz/displayjob.php...ation%5B%5D=18

[elZorro]

Down to 5 cents CAD on higher than usual volume on Friday on the TSX. Looks like we might have another NTL on our hands here, gold is really falling out of favour!

At current exchange rates the shares should be at 6 cents NZ.

Any clue how low it can go elZorro?

Bucko's probably right here, Moosie, the Q1 news should be fairly good. Even big miners like ABX have been pounded, so nil desperandum. Considering they've just had a PP at C16c, with some big investors involved, and the amount of cash that came in was about half the current MCap, it must be very close to the sensible limit downwards. It's more likely the best buying opportunity we've seen for a long time, but you'd need to be braver than most. I keep an eye on what the Canadian retail investors are saying about GEL, and over the weekend a poster had this to say:

http://www.stockhouse.com/bullboards...0&s=GEL&t=LIST

So far, NZPAM has not posted an EP permit extension application for WKP. I reckon we'll see it on their website today or tomorrow (The WKP permit area was enlarged and accepted in March 2013). The Q1 report will also be out anytime between now and the end of the month.

[bucko]

thats awesome, me and a friend have been looking at doing the same. how did you go about doing that? you wouldnt be able to message me the costs/process would you?

[bucko]

blonde....haha im so disapointed!

yeh Elz hopefully GEL pull their finger out soon and start giving us some regular updates...this price is killing my portfolio

[elZorro]

blonde....haha im so disapointed!

yeh Elz hopefully GEL pull their finger out soon and start giving us some regular updates...this price is killing my portfolio

Well, we could average down, although that doesn't often work for me. 9 days to the end of the month and the Q1 report has to be out, look back over this share and the price has never been so low. I did average down last time GEL was like this, that did work.

I still have a lot of faith in the company, they need someone like Rod Drury running the PR, as Moosie noted recently. Show us the mining, the hardware, tactile proof we're going places. And do this in small bites, regularly. Otherwise we're all wondering what's going on.

Bucko and Moosie, there are some mining gurus on ST: try talking to JBMurc, Aotea and Miner, for a start.

[elZorro]

Ah I've had my fair share of miners the past year or so (made some, lost some). The tech scene is all me right now, but may return one day when gold bottoms out. Everything works in cycles and all, happy sitting on the sidelines right now

I thought gold had bottomed out? Well I hope so, or a lot of mining companies will be dropping staff.

I looked up the fine details on NZPAM's Form 8 for a discovery appraisal (WKP extension).

3. Appraisal Extensions will only be granted where the permit holder has made a discovery (refer to the Act and relevant minerals programme for more information on the meaning of “discovery”), the remaining duration of the permit is insufficient to carry out the appraisal work for the discovery, the permit holder is not entitled to extend the duration of the permit under section 37(1) of the Act for a period sufficient to carry out the appraisal work for the discovery or for all land to which the discovery relates, the Minister is satisfied that reasonable efforts are being made to carry out the appraisal and that the proposed work programme is sufficient to carry out the appraisal work (refer section 37(2) of the Act).
4. Applications for Appraisal Extensions must be made while the permit is still in force (prior to expiry). A permit that is the subject of an application for an Appraisal Extension continues in force until the Minister determines the application.
5. The Minister’s general approach will be to not grant an Appraisal Extension beyond four years.
6. Appraisal Extensions are restricted to that land comprised in the permit to which the Minister determines it is likely that the discovery relates and is necessary to reasonably appraise the discovery and enable subsequent mining operations.
UNDER SECTION 37(2),
CROWN MINERALS ACT 1991

So the JV has asked for the maximum time allowed, and until this is granted, which could be at least 6 months, the permit continues on as before. They'll need to show the Minister that a reasonable attempt has been made to explore the permit up until now, and a resource estimate is due, according to those terms.

[elZorro]

I wish I knew for certain when it had bottomed. I would be sure to let you know first elzorro! the fact is shorts have maxed out and american finances are coming to the fore again. might see some sideways action for awhile as new support/resistance levels are set. overall though, we are still well into a bear market

OK, cheers for that Moosie.

NZResources has some more detail on Waihi explorations, Glass Earth is right in the thick of it.

Newmont Waihi evaluates South and West Waihi permits

22 May 2013
The community conscious miner Newmont Waihi Gold has detailed activity it has been undertaking on areas in Waihi with Glass Earth Gold Ltd (TSX-V and NZAS: GEL).
Newmont Waihi said Glass Earth Gold holds exploration permit 40767 which covers a predominantly residential area south and west of the Martha mine.
Newmont Waihi was conducting surveys on part of the permit where it can earn an interest by conducting work to an “agreed specified value.”
Once this value is reached Newmont Waihi can formalise a joint venture agreement.
There have been varying levels of interest in this area over the last 50 years with some drilling undertaken in the 1960s and other exploration since. Nothing of any interest has ever been identified.
Newmont Waihi Gold was currently undertaking gravity surveys in Waihi West that involves a technician with a roving monitor spending about 10 minutes beside the road at each location.
A gravity survey detects variations in the earth’s gravity field that indicate variable density of the rocks beneath the ground.
For example, Newmont Waihi said, the Waihi Basin - the flat land to the south of Waihi - is characterised by a large circular gravity low that indicates that that area was once a large caldera, similar to Lake Taupo. The gravity low indicates that the Waihi Basin is filled to considerable depth with volcanic deposits that have a much lower density than the surrounding hills.
There have been several gravity surveys carried out in the area previously, but they have not been evenly spaced. In some areas the survey points are close together and in other areas there is very little coverage.
Where the stations are closer together more detail is apparent in the resulting processed data. This new survey will ‘fill in the gaps’.
The current survey is attempting to improve the district-wide resolution to make it easier to interpret data. The copany said it was not expected the data will reveal details such as the presence of veins. It is aiming to assess whether some of the larger geological features interpreted from previous drilling can be detected through their gravity response.
“Our work in Waihi West is one part of the exploration programme Newmont Waihi Gold is engaged in as we continue to determine what, if any, areas should be considered for further investigation,” the company said.
“This is all part of the exploration process. It is lengthy and detailed, taking place over years rather than weeks or days. We are very used to acquiring what some may consider ‘discouraging’ results, but that is the nature of the activity.”
Newmont Waihi said that in the Waihi West area of the permit the exploration there was not related to the company’s Correnso discovery closer to the Martha mine.
“It is coincidental that the work in Waihi West was scheduled for this time. There is no connection between the Correnso announcement and the start of work in Waihi West.
“We have not identified an ore body under Waihi West despite conducting exploration activities including drilling since 2006.
“If the current exploration activities suggest there is merit in a closer look at the area we will employ other more precise techniques. At this stage, however, we have nothing to report other than routine investigations over a wide area.”

Newmont is hoping to use a non-invasive gravity technique to pick up the same anomalies that they've already drilled, and with enough data to fill in the gaps they have, they might be able to spot other areas that should be drilled next. Correnso is a deposit that was missed for many years, I just hope there is something similar to that, under an area GEL has a portion of .

[Minerbarejet]

I believe NTL backs onto this permit further to the east - as well as having the Talisman to the west at Karangahake. We have them surrounded!!