AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

Probably not..although Digger is.

I can report that the Glass earth website now has the annual report and MD&A locked in as pdfs. Here is part of the MD&A relating to WKP.

Exploration on the WKP project demonstrates that it is a very large permissive low sulphidation
epithermal gold system (approximately 1.2km by 1km). Following on from historical exploration of the
Eastern Zone evaluated by various parties in the 1980’s and 1990’s the Hauraki Joint Venture work has
identified two other significant zones of mineralisation (Central and Western Zones), and recently
intersected mineralisation on the Eastern Graben structure where the current focus of drilling activity
continues.
In the Central Zone broad low grade intercepts are a feature (WKP26 151m at 1.2ppm Au, and WKP27
102.2m at 1.1 ppm Au) with the margins of a voluminous rhyolite rock type providing a focus of
hydrothermal fluid flow and high grade gold mineralisation. The interior of the competent and
homogeneous rhyolite rock has permitted regular fracturing and broad hydrothermal fluid flow with
resulting consistent large-tonnage low-grade gold mineralisation.


This contrasts with the East Graben structure within the Eastern Zone which is typically dominated by
discrete veins. Drill core from 580m down-hole in WKP35 shows episodic high level crustiform banded
veins, hydrothermal and tectonic brecciation corresponding with multiple phases of mineralisation,
hosted on the position of rhyolite and andesite lithologies. Assay results for this interval returned 7.9m
grading 5.1 ppm Au, including 3.4m grading 8.3 ppm Au. This style of mineralization on the Eastern
Graben structure was new for this project and important because there are strong similarities with major
gold mines in the vicinity, namely Martha, Favona, and Golden Cross.


The broad low grade gold mineralisation within the Central Zone and veins relating to the East Graben
structure lie on a major north-north–east trending structure marking the intersection of rhyolite (west)
and more intermediate andesite pyroclastics (to the east). This is a district scale structure, identified on
magnetic and resistivity (geophysical) data, and may represent the primary focus of significant coherent
mineralisation in the WKP area.


The HJV plans a significant exploration programme for 2013, focussing initially on the evaluation of the
Eastern Graben Structure and to include a project first resource estimate, metallurgical test work, rock
engineering study, geophysics and a 2,500m diamond drill programme. The estimated cost for this
programme is NZ$2.7 million.

None of this text is entirely new, it's been around for a few weeks/months. It's just great to read and hold in view. It's the second to last sentence I'm having trouble with. What does it mean? I think that being realistic, all the test work and the drilling programme will have to be completed before the Project First Resource Estimate can be published. Clarification from head office would be helpful here. If that is the case, the drilling needs to get underway pronto, before the winter season hits. Although perhaps the lone helicoptered drilling rig doesn't have such an issue with access. WKP36 and 37 assays are needed first.

What does it take to get those core samples assayed? You'd think that with geologists and lab/chemical engineers being produced by our universities every year, someone would step into any gap in the NZ mineral reporting market. In the Waikato, a big and profitable lapse in speedy agricultural soil/grass/water/crop data analysis was filled by Hills Laboratories.

How are ore and waste defined?
Samples of rock from within the pit or from underground are sent to the SGS laboratory in Waihi to determine gold content.
The data generated from assaying is used to map out which areas are suitable to process as ore and which areas are waste material to be used to build the waste rock embankment or to be used as backfill underground.

In process testing - double checking
Throughout the extraction process at the Newmont Waihi Gold mill, samples of solution, solids and activated carbon are removed for analysis to determine the efficiency of the process. The solids and the carbon samples are analysed by the fire assay technique for gold and aqua regia for silver. The solutions are aspirated (turned into a fine mist) into an AA Spectrophotometer.

Fire assay
Fire assay involves adding a ground portion of the solid (or carbon) to a crucible containing a flux. Flux is used to lower the melting point of the samples to ensure the entire sample becomes liquid during firing. The flux contains borax, soda ash, silica flour, litharge (lead oxide) and silver nitrate in various quantities. In the firing stage everything turns liquid and the lead oxide forms into small globules of metallic lead. The globules fall through the liquid and form an amalgam with any other metals it comes into contact with, including gold and silver. This all collects in the bottom of the crucible. After about an hour at 1,000 degrees Celsius the contents of the crucible are poured into a conical mould to cool. Again the lead, being more dense than other material, quickly settles to the tip of the conical mould and solidifies along with the glass-like rock remains.
When cooled, the lead is separated from the glass and then cupelled. Cupellation involves placing the lead ‘button’ into a pre-heated cupel at 1,000 degrees C. A cupel is a small cup made of magnesium sulphate which is a material that is capable of absorbing the lead. At this temperature the metals liquefy and lead is absorbed into the cupel. Gold and silver having a higher surface tension than lead, are not absorbed and remain as a small ‘prill’ in the bottom of the cupel. The cupel and prill are removed from the furnace and allowed to cool. The prill is then dissolved in aqua regia. The resulting solution is aspirated into an AA Spectrophotometer to determine the gold content.

Aqua regia
Silver in the solids and carbons is determined by dissolving the sample in aqua regia, a mixture of hydrochloric and nitric acids. The sample has specific volumes of each acid added, then is placed on a heating block to digest. When completed the resulting solution is diluted and then aspirated into an AA Spectrophotometer.
References and acknowledgements

The information on this page was kindly supplied by SGS NZ Ltd.

AA Spectrophotometers sell new for about US$12,500 to $20,000. Guess you'd need a diamond rock sample cutter, a furnace, a small rock crusher, some crucibles and some chemicals and reagents. And a quality certification, maybe the tricky part.

[elZorro]

The events of just the last few days have (nearly) swapped the MCAP positions of GEL and NTL. The former is now trading at an MCAP not far above the private placements that were put into the company in the last financial year, while NTL yesterday was at one stage up by 45%. NTL also appear to have some more immediate prospects for hardrock mining, and that will take some of the focus off GEL.

However, the last time GEL shares were this low, large numbers of shares were sold at a bargain and the price recovered very well. Back then, WKP had not been looked at. Garibaldi was not discovered, Neavesville was not under investigation for mining, and GEL had no rapidly increasing placer income stream or mining equipment assets.

So this time around, Glass Earth is at some risk of a takeover, IMHO. By whom - that would be another question - but I can think of two parties who would be interested.

I conclude that it might be a good time to accumulate GEL shares. Those who took part in the private placement earlier this year will not be too worried, as they have an option to purchase more GEL shares for no more than C25c, for up to two years. This is almost within the new timeframe that GEL put out in the annual report, of being in a position to "deliver" on WKP and Neavesville within 2-3 years. Delivery of either permit to the mining stage would turn GEL share ownership into a life-changing experience.

[Balance]

well fella's its a good job this forum thread isn't about purchasing Gold its about purchasing shares in a gold exploration/production company. while i agree wtih some of Mr Buffets comments about investment in gold i can still understand its historical importance to the global economy...and i also understand (and hope) that if GEL mines lots and lots of gold ill end up with lots and lots of moolah!

are you a holder in GEL Balance?

Gold/production company = even more high risk than investing in gold!

Not a holder and after following the comments on this thread, will never be.

What a disastrous investment for anyone, save for the traders who are able to move ahead of the market peaks and troughs.

[elZorro]

Balance, I think the only other time you've given your thoughts on GEL, it was to pop up with an equally light-weight denouncement.

Yes, timing in this share appears important at the moment, and over the last few years since the IPO in 2006. But the MCAP of the company has always been less than say $60mill over the entire time. Longer-term holders are well aware of the massive value for the company, of any hard-rock mining feasibility studies, or movements towards mining. A quantified report on WKP for just part of its resource, is due out sometime this year.

You appear to be more interested in shorter-term dividend paying shares, and that's fine. Other investors like me are taking a calculated longer-term play with a local business that appears to be moving in all the right directions, with management that are working hard to achieve longer-term results.

I'm sure the likes of Newmont Mining, L&M Mining /millionaire Geoff Loudon, ACC's share fund, and some old family interests, who are all investors or JV partners with Glass Earth, don't share your opinion of the longer-term prospects.

[Balance]

Balance, I think the only other time you've given your thoughts on GEL, it was to pop up with an equally light-weight denouncement.

Yes, timing in this share appears important at the moment, and over the last few years since the IPO in 2006. But the MCAP of the company has always been less than say $60mill over the entire time. Longer-term holders are well aware of the massive value for the company, of any hard-rock mining feasibility studies, or movements towards mining. A quantified report on WKP for just part of its resource, is due out sometime this year.

You appear to be more interested in shorter-term dividend paying shares, and that's fine. Other investors like me are taking a calculated longer-term play with a local business that appears to be moving in all the right directions, with management that are working hard to achieve longer-term results.

I'm sure the likes of Newmont Mining, L&M Mining /millionaire Geoff Loudon, ACC's share fund, and some old family interests, who are all investors or JV partners with Glass Earth, don't share your opinion of the longer-term prospects.

No need to be so touchy over a stock which has so far made losses only for everyone save the management.

My reply is in response to bucko stating that there is a difference in investing in gold versus investing in a gold exploration company, as if the latter is lesser risk!

[elZorro]

No need to be so touchy over a stock which has so far made losses only for everyone save the management.

My reply is in response to bucko stating that there is a difference in investing in gold versus investing in a gold exploration company, as if the latter is lesser risk!

Balance - I'm not touchy, I'm just saying that you should be sure of your research before making grand claims. The salary package for the CEO of Glass Earth wouldn't get me too excited. It looks like a lot of work and stress for that sort of a tax-paid return. Members of the board are paid a very small amount, although that looks like being improved a bit in the next AGM. Glass Earth has been a frugal operation all the way through, and they've been out there doing it, just like they promised.

I agree that it would have been less risky investing in gold from that great runup from $300 an ounce to $1800, in hindsight. But GEL and some other junior explorers have the clear potential to be 10-30 baggers in the medium term.

[Balance]

Balance - I'm not touchy, I'm just saying that you should be sure of your research before making grand claims. The salary package for the CEO of Glass Earth wouldn't get me too excited. It looks like a lot of work and stress for that sort of a tax-paid return. Members of the board are paid a very small amount, although that looks like being improved a bit in the next AGM. Glass Earth has been a frugal operation all the way through, and they've been out there doing it, just like they promised.

I agree that it would have been less risky investing in gold from that great runup from $300 an ounce to $1800, in hindsight. But GEL and some other junior explorers have the clear potential to be 10-30 baggers in the medium term.

So let's see.

Shares were listed in October 2006 at 25 cents per share.

Now they are trading at 10.9c per share but that's after a 5:1 consolidation in Mar 2010.

So it's equivalent of 2.18c per share - 92.8% loss over 6.5 years for those who got in at the IPO level.

Rather hard to get excited about a stock with that kind of loss track record, wouldn't you agree?

All junior explorers in my observation raise funds by holding up the promise of 50 to 100 baggers.

Most go the other way however and deliver massive negative returns. Become shell companies for backdoor listings.

[elZorro]

Balance, I've already pointed out the dilution you mention in a post a few months ago, with a caution.

But I also mentioned what can happen when a junior explorer produces a Project First Estimate, as GEL will, for WKP, in 2013.

http://www.sharetrader.co.nz/showthread.php?4019-Glass-Earth-IPO&p=397622&viewfull=1#post397622

Glass Earth has needed to expend $50-$60mill on exploration over the last 7 years, much with external contractors, and a good portion was spent up front with the airborne surveys. This has provided a wealth of data covering a big part of NZ, and some has been used to track down water supplies in Otago, or to help spot an unknown large lava area near Taupo. It also highlighted WKP, and many other sites, only some of which were drilled after further ground-level investigation. This data will be there to help future mineral exploration in NZ.

While the risks for junior explorers are high on individual new projects, GEL has looked at multiple permits, on a scale never seen in NZ before. This mitigates the overall risk of finding nothing. Brent Cook chose GEL as one of the shares he held for about 2 years, while we waited for more drill assays from the big WKP prospect. If you look at the chart, investors had some opportunity to recover any losses during that period, in Sept 2011 when the share reached well over NZ70c, and in Oct 2012 there was a moderate peak near 50c. But many investors will chose to stay for the end game. Glass Earth is now focusing on their best prospects, after doing the hard yards.

[bucko]

and the slump continues...from one of the articles on the NTL thread theres an NZ company forcasting the Gold price to rally and hit up to $2750 an ounce by the end of the year

[elZorro]

I've had a bit of a look at the NZPAM site, some developments there for GEL. Permit PP39336 (Southland) has been extended until 5th May 2014. This is a large permit area of 15,140 Ha, surrounding some other permits including one or two of GEL's. There is platinum in the general area.

Also, EP54765 has been granted, this is Moeraki. It had a mention in the February report. From the ODT:

Aside from ongoing drill testing and sampling around the Ophir gold project in Otago and nearby Garibaldi prospect, Mr Henderson delivered a technical report in February looking at four other Otago and Southland projects, in the valleys of Manuherikia, Maniototo and Waikaia, where alluvial gold lies in shallow gravels, 1m-11m below the surface.
Glass Earth has also been granted prospecting permits around North Otago, in the Kakanui and Hawkdun ranges, with stream and soil sampling under way, including at a permit near Moeraki.
simon.hartley@odt.co.nz

Moeraki is a wide skinny permit stretching from Northwest to Southeast across part of the South Island. The other very interesting feature is that it shares a southern border with OGC's Macraes Mine permits. Moeraki is valid until 18th May 2018.