AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

GEL shares have picked up a bit, since the collapse started by Brent Cook's broadsheet recently. They are still resting well below the price set in the latest PP (CD16c, NZ20c), and I thought that would be rock bottom.

Here's Brent Cook talking to the Gold Report in late 2012, and Glass Earth is not mentioned. Although he does say that some shares held by him for longer than a year hadn't performed well, and were pulling down his average returns. CTG, another TSX-V longer-term share he held, is mentioned and in a neutral (to positive) way. Both were dropped in the same week, with explanations.

http://www.resourceinvestor.com/2013...recious-metals

As usual though, great informative background here. Basically he thinks the market should still be tough on juniors in 2013, but that there are still some bargains to be had. The market is not at a peak, may be near a bottom, and maybe some of the poorer juniors are finally being valued fairly. Finance is going to be hard to find, leading to dilution for many.

Let's assume Brent didn't pick GEL 18 months ago so that he'd get a trip to NZ out of it eventually. It had well above average prospects, and I would think that still applies. Dilution and delays at WKP are behind this decision on his part.

Delays on the WKP drill core assays can be explained by the SGS lab in Waihi having one major customer: Newmont. And Newmont will be prepared to pay only a fair price for each assay, most of which will be for urgent grade control data for their mines. SGS will be looking after the 100% Newmont owned jobs first, because that's the breadwinner. They already do 12hour, 4 days on, 4 off shifts, meaning (I think) they are open for 84 hours a week, every day. There is a job going as a sample preparer for that lab, right now. No major qualifications needed (a good sense of humour?) The WKP report showed that the lab in Waihi has a limited number of fire assay pots, and the premises don't look too large or overly staffed. Maybe 10 staff in total. (Footnote, SGS looks like a very profitable company, only 8mill shares and each one costs a fair bit).

The WKP report explained some core samples are being sent to Australia now. What a shame explorers have to do this sort of thing to get a sensible turnaround.

The other aspect is dilution. The Placer report makes interesting reading, and there is clearly potential for much improved profit from the alluvial mining at Drybread. GEL is not using large-scale gear yet, compared to L&M for example. Some overheads and costs look like they could be pruned back, now that the team has decided what gear is needed for the longer-term work. The mobile conveyor looks particularly useful, and I'll be keen to see the details on this in future. The efficiency of something like that wasn't factored into the older data.

It's up to GEL management to prove Brent's decision on the share might have been a bit hasty. Good clear profit cashflow from the placer should increase the MCap of the company by about 5x the profit per annum, so say $6mill profit p.a. would add $30mill to the MCap. A quarterly target to achieve that is just $1.5mill of clear profit from placer returns. On current data, the return before scheduled payments on the equipment is about $2mill p.a.

[elZorro]

Some increasing volume in GEL shares here lately, and the price is moving up steadily.

Looked at the NZPAM records just now. Renison Consolidated (Aussie minnow MCap $4mill, now called Lane Resources, LNY) has put in an application for 31,000Ha of exploration starting from below the Talisman Mine (they have the area around it, or want it) and way down into the Waikato. It's called Waiorongomai. I went up the valley on a school trip once, it's near Te Aroha, and there was a limited amount of gold taken out of there.

http://data.nzpam.govt.nz/PermitWebM...lication=55213

[elZorro]

Glass Earth has booth 2706 at PDAC conference in Toronto, early March. They'll join a lot of other miners and explorers.

Maybe Simon will be over there, which explains the quiet information stream lately. They usually put out a press release about PDAC.

http://www.pdac.ca/pdac/conv/2013/pd...bitor-list.pdf

[elZorro]

CHFIR has just put out a booklet for PDAC. GEL gets a page (14). Neavesville seems to be an important new initiative, because a good half of the page covers it. Trig Bluffs is the area they'll be looking at first. Historic 1999 drill results must have been good.

http://www.actonsoftware.com/acton/a...1/l-0001:52c9/

Here is the news release from November last year, confirming it's all old news. But Trig Bluffs might need fleshing out a bit.

http://glassearthgold.com/s/NewsRele...eportID=558357

The Neavesville area had some gold mining presence from 1875, and is located in the bush, serviced by tracks that might be part forestry tracks, part there to look after the power pylons running through. It's 1-2 km south of the Kopu-Hikuai Road which heads across towards Onemana etc, from Thames. The area has Maori ownership apparently, and has been cleared of some pine forestry recently.

Coromandel Watchdog shows three Neavesville area permits. Hauraki Gold is owned by Eurasian, the outfit that GEL has an agreement with. Newmont owns a small part of Eurasian. Eurasion was able to get hold of these two permits by staking, at minimal cost.

http://watchdog.org.nz/action/neavesville-kopu-hikuai/

Here's a video complete with great soundtrack, on the recent rediscovery of a stamper battery setup as marked on the topo map. 10 stamper batteries were erected there, and never got used because the gas powered motor wouldn't work properly at that altitude. Some of the stampers were removed and are on show in Thames somewhere.

Sounds a bit like WKP. Remember, back then the gear was crude, and you needed 1oz/ton grades to make good money. These are now called bonanza grades.

http://www.youtube.com/watch?v=d0rTmzvsPqw

[elZorro]

PDAC starts today and runs until Wednesday. The Investors Exchange area (booths) is sold out. Looks like 1250 companies will be represented there, of various sizes. Most booths are the same size as GEL's (they are #2706).

http://www.pdac.ca/pdac/conv/2013/ie-exhibitor.aspx

The annual books will be due out at the end of March, last year they were signed off on 27th March and released by the required date, I assume the end of March.

[elZorro]

Waihi Gold Company (Newmont) has applied for a 12 month extension to their 100% owned prospecting permit 52910. It's adjacent and above the Trig Bluffs area in Neavesville. So they do have some interest in the region then..

http://data.nzpam.govt.nz/PermitWebM...x?permit=52910

[elZorro]

Yesterday, GEL relinquished permit 51706, which was Star Trek, in Otago. This has not had much of a mention for years. I liked the name though. Pity.

Renison Consolidated changed its name to Lane Resources, converted a loan to equity from its founder/chair Stephen Bizzell, and is poised to develop its coal mines etc in Aussie and do work on its exploration permits - their only NZ permits happen to be in the same area as GEL is working, lower Coromandel. Their new stock ticker is LNY on the ASX. MCap is $4mill, but I might have been hasty here, because Stephen Bizzell was involved in a billion dollar sale of a company he founded. He would have received nearly $23mill in 2010.

CORPORATE
On 31 August Mr Ben Harrison was appointed as a Director of the Company replacing Mr David
Vincent.
In early October Renison advised it intends to undertake a restructure and recapitalisation of the
Company.
As an initial step in the process, Renison is currently completing an interim capital raising to fund
general and administrative costs until the restructure and recapitalisation is finalised.
Following the interim capital raising, Renison will then embark on obtaining the required shareholder
approvals necessary to complete the restructure. These approvals will include a share consolidation
and the cancellation of the forfeited partly paid shares currently on issue, together with a proposal to
change the Company's name to Laneway Resources. A larger capital raising will then be undertaken
primarily by way of a pro-rata entitlement issue to existing shareholders to provide sufficient capital to
recommence exploration activities across its project portfolio, continue feasibility studies on the Agate
Creek Gold Project and extinguish the existing loan facility (via conversion to equity) that has been
provided by the Chairman of the Company, Mr Stephen Bizzell.
Further details of the proposed restructure and recapitalisation will be provided to shareholders in an
Explanatory Memorandum that will accompany the Notice of Meeting for the Company's Annual
General Meeting to be held in November.
Following the restructure and recapitalisation, Renison will be well positioned to capitalise on its two
advanced assets namely the Agate Creek Gold Project and the Ashford Coking Coal Project, as well as
a promising portfolio of exploration projects and to investigate new project opportunities that are
being actively pursued.
For further information contact:
Ben Harrison or Scott Hall
Phone: (07) 3108 3500
E-Mail: admin@rcm.com.au
Website: www.rcm.com.au
Competent Persons Statement
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by
Mr Scott Hall who is a member of the Australian Institute of Mining and Metallurgy. Mr Hall is a full-time employee of
Renison Consolidated Mines NL and has sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the
2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Hall
consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

[elZorro]

Upon updating my GEL permits spreadsheet today, I see that some of GEL's permit applications have been let go. These were all quite large prospecting permit applications started in 2011, all in the Otago region.

55345, Murray (Poolburn-McAdies)
55347 Lammerlaw (Fruidburn)
55349, Omakau (Lauder-Becks)
55350 Black Rock (Lee Stream)
55351 Greenland (Serpentine outer)

All now missing from the spacial register, they added up to 1080km2 or 10,801.6 Ha.

This means that 'under application' and permitted spaces for GEL add up to a shade under 3,000km2.

Note that application 55109 is GEL's, to the side of Newmont's permit at Neavesville and above the Eurasian permits.

The picture is that Glass Earth is serious in its statement: they appear to be moving away from the permit prospector model and are going to concentrate on fewer permit areas. The upper Waikato is certainly one area of interest. Ophir is one older Otago permit that they've refused to let go. We haven't heard much about Garibaldi lately.

Research note: Brent Cook's newsletter EI was a renamed version of Paul van Eeden's newsletter, resumed in 2008. http://www.thefreelibrary.com/Junior...o-a01611715826

Ophir Gold Ltd, a company with multiple shareholders but over 39% owned by Bob Kilgour's family, has applied to extend the time (5 yrs) exploring permit 40427 at Ophir, just South of the township. GEL has JV areas to the south of that, and around it.

[bucko]

and the price continues its decent, elZ is it end of march for the next announcements??

[elZorro]

and the price continues its descent, elZ is it end of march for the next announcements??

I had a look, last year it was March 28 for the annual set of books. It's only a year since the placer JV partner was bought out. So could be some good results to show.

PDAC sounded like hard work in general for the exhibitors. However soon after the end year books, the Q1 report will be due. By now the field work at WKP should be under way, finding the best resistors to drill. And where are those drill assays? I'd expect some press releases soon. I'm sure there will have been good developing profit from the placer work. That's something most junior explorers don't have, an income and a solid asset base with staff. It's time the shareprice reflected that.