AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

If it is Brent Cook's adjustment to his subscriber portfolio that has dropped the shareprice, it should only be temporary. Only 1 mill of shares were sold on the TSX yesterday, which is small for over there. As recently as late Sepetember 2012, Brent appeared still happy to be holding.

http://www.stockchase.com/company/view/4217

So it's an opportunity to pick up some cheap shares, for the brave. The GEL TSX shares are holding up today, with a bigger gap showing between buy/sell.

[elZorro]

Cheers for that elZorro, always onto it with the goldies! Seems a bit ridiculous people should trade out because of one man, especially at a time when a major report has entered the market and shows the direction of the company...

Brent Cook has quite a following in Canada though. When he plucks a small illiquid company like Glass Earth out of obscurity for his subscribers, the share price is bound to move upwards initially. I like to think that because he held the shares for 18 months or so, and actually visited Muirs, Waihi and Otago placer, his enthusiasm was well founded. Since he puts out a report on Sunday once every week or so, with buy/sell/hold and background data on the chosen set of resource shares he runs with, there has always been this temporary threat hanging over the share price, once he brought the new retail shareholders in on his coat-tails. But he also helped put out a good video on Glass Earth, he's great at fronting the camera.

I think GEL will survive without Brent Cook. Brent has given management some indirect advice though, by the sound of it.

(1) Stick to a clear plan, WKP is really important, don't risk GEL's portion of the JV interest.
(2) Don't dilute our shareholding so much, we're getting a bit tired of it.
(3) Placer returns need to be able to fully fund the operation if possible , both G&A and exploration. That will fix both (1) and (2).

While we wait for Newmont to have a think about their next shuffling steps in exploring WKP, the placer returns from Drybread need to be top of the pile in importance. The Placer report mentioned a portable conveyor system now being used at Morans. I've seen these being used in quarry operations - they can be really efficient. GEL should be highlighting these advances, and bringing in more gear like that.

I'm sure Simon will agree with my suggestion for the company motto..below

[elZorro]

No wonder the dont talk grades!! That's a lot of dirt 2+m tonne for mainlyinferred 30k oz. a lot of work for their micro plant. Might take decades to run through that dirt.

Lucky they are second board stock they don't need to disclose like main board cos and even then they struggle

Anyone know how their McDonald's gold franchise drive thru plan is going ?

I'm not sure where the figure of 2Mt of ore is from. It's done in cubic metres of wash. Drybread is a reasonable permit for placer work. With two GRUs, they're handling 105 m3 of wash an hour, running for 64 hours a week, 350,000 m3 a year. There's about 6 years of Drybread material at the current rate, but they only have 2 machines going. More can be deployed, and they can increase the hours of operation.

The company info is that 0.2g/m3 is breakeven in ideal circumstances, and certainly grades around 0.4g/m3 and upwards are being worked. It's not hardrock, there is very little processing. Different rules Bullish. Some of the Drybread permit has a grade of 1.5g/m3.

In Canada, where most of the stock trades, the BCSC rules are very tough, and that flows through to press releases here, and the website. They do talk grades, always have. Have a deeper look.

[bucko]

i just got an email this morning...

"Good Afternoon,

Glass Earth Gold (TSXV – GEL; NZAX – GEL) advises that it has closed the third and final tranche of its previously announced non-brokered Private Placement. A further 1,884,500 Units have been sold at a price of $0.16 per Unit for gross proceeds of C$301,520.

Each Unit consists of one common share and one common share purchase Warrant. Each whole Warrant entitles the holder to purchase one common share at a price of C$0.25 per share, exercisable for a period of 24 months from the date of issuance.

For more information please see the attached release.

Should you have any questions, feel free to e-mail jeanny@chfir.com at anytime."


I guess we should expect the price to drop somewhat over next week given the amount of extra shares that are out there?

[elZorro]

i just got an email this morning...

"Good Afternoon,

Glass Earth Gold (TSXV – GEL; NZAX – GEL) advises that it has closed the third and final tranche of its previously announced non-brokered Private Placement. A further 1,884,500 Units have been sold at a price of $0.16 per Unit for gross proceeds of C$301,520.

Each Unit consists of one common share and one common share purchase Warrant. Each whole Warrant entitles the holder to purchase one common share at a price of C$0.25 per share, exercisable for a period of 24 months from the date of issuance.

For more information please see the attached release.

Should you have any questions, feel free to e-mail jeanny@chfir.com at anytime."


I guess we should expect the price to drop somewhat over next week given the amount of extra shares that are out there?

Bucko, the market already knew the latest PP was over-subscribed a small amount, so the Brent Cook decision had a lot more impact, but that'll be short term.

Here's a page from Brent Cook's EI website showing the issues with finding a payable resource. However a neat chart I'd forgotten about (a bit out of date) implies that only small grades below 1g/tonne are the cutoff for open cut mining, perhaps with heap leaching. Macraes does a bit of that in Otago. More like 3.5g/tonne for underground mining.

WKP has demonstrated large areas of good opencast grade so far, and now they're looking for underground resources.

Brent Cook appears to have replied to the Stockhouse thread.

Here's a very recent video from Brent Cook. Probably done just before GEL and another of his 22 shares was dropped from the list.

It's possible Brent still holds his GEL shares and will wait sometime into 2013 before selling. The mere fact that he held GEL tells us that he thinks the chance of GEL making it to the hardrock mining stage somewhere, is/was 1:25 to 1:50. The odds for average gold exploration juniors is more like 1:1000 according to him.

What does Brent like to see? Honesty, less dilution, focus, a good team, and credible drill results that are scientifically disclosed, without undue bias.

[bucko]

ElZorro, when are you hoping for positive movement on the share price? in your opinion

[elZorro]

ElZorro, when are you hoping for positive movement on the share price? in your opinion

That's a good point, Bucko. So IMHO, DYOR etc: here goes..

I'd imagine that a lot of work was required of a small team at GEL HQ over the holiday break, they wouldn't have had much of a holiday. But they've done well, these are good reports. I'd expect the BCSC notification will be lifted soon, if the reports are accepted as up to NI43-101 standard. Maybe it's already lifted, they are not on the default list anymore, I looked. So there's one good press release coming up perhaps.

WKP drills 36 and 37 still have to report fully. Remember one of these was looking for an extension in the EG mineralisation, the money end of WKP hopefully.

Crucial to feel-good sentiment from shareholders at this immediate point, will be placer cash in the bank, and more of it. Maybe Simon and others will be able to give us some more background on what's happening over at Drybread, for instance what does the new conveyor look like? Any ideas to increase production further?

You also have an option to wander into the GEL head office for a chat Bucko, I've never visited any of the three locations they've had in Wellington.

I see the current shareprice dip as temporary, in fact investor interest seems to be good at these prices, here and on the TSX. Keep looking at the MCap, does it look logical for a company with a quickly increasing gold turnover that might exceed $10mill p.a. soon, with the exploration assets they have?

Short answer: I reckon the price will be back over NZ20c soon.

[elZorro]

I see no reason why the share price should be under NZ20c in the first place, other than the words Brent Cook wrote in his newsletter. From what I can tell, they wern't strong words at all. He had just suggested that he'd be selling his stake sometime during this year, then the obvious happened, his TSX followers jumped ship at any expence.

We'll find out soon who was the silly one, but I bought a few more this week @ .16 and don't regret a thing about it. I'll probably end up regreting I didn't buy more at these fire sale prices.

Yep, makes sense Yankiwi. No-one's saying this share is the best one in the world, but GEL's making the right sort of moves at the moment, on the whole. Brent might be able to see even better explorers out there, it doesn't mean we are going to do badly.

I wonder if this conveyor is anything like the one they're using at Drybread. On sale on Trademe.

http://www.trademe.co.nz/business-fa...-554414643.htm

[bucko]

wow the things you can find on trademe! haha

yeh i increased my holdings this week as well, i just couldnt say no to 16c and from what i've read so far about the company im flabergastered as to why it was so low anyway!

so as a shareholder i can just head into one of the GEL offices here in wellington and get a tour??? (still a noob investor, i dont know these things)

[elZorro]

wow the things you can find on trademe! haha

yeh i increased my holdings this week as well, i just couldnt say no to 16c and from what i've read so far about the company im flabergastered as to why it was so low anyway!

so as a shareholder i can just head into one of the GEL offices here in wellington and get a tour??? (still a noob investor, i dont know these things)

Bucko, visiting the office has to be fine, you might want to call first to make a time, as per any business. It's in a cluster around Straterra, an industry lobby group. The "tour" might not be a very big tour, as don't forget the company is on the whole, frugal.

I wouldn't mind being given the opportunity to go on a tour around the Otago permits though. They could set up an open day at Drybread sometime. While they might think it's boring, for shareholders it would be a real eyeopener.

I had a look at some of the other gear that is being sold alongside the 30mtr conveyor. Some of it is located in Central Otago. If I'm right, GEL management will already know all about this surplus mining equipment, it's not too far away from Drybread. Still, it's interesting to see the prices. And that crawler with a boom attached to it, from a Trademe photo, could that be the mobile cross-pit conveyor?