23-02-2012, 10:29 PM
Not at all Sparky, great to have your comments on the thread. Have a look at a few goldie shares, remarkable gains on some, especially since late 2008. GEL is still waiting to make its big run, which any junior explorer will do if mining proposals eventuate. Here's a few more photos from CHFIR, from their June 2011 trip to NZ. Looks to me like two Hitachi loaders are in use, one dump truck for removing topsoil or overburden, and GRU#2. All this gear is probably owned by Dunstan Mining. The site might be McAdies or Gun Club, Otago.
This new article is full of detail about why some of us hold gold explorers.
Last edited by elZorro; 24-02-2012 at 05:43 AM.
24-02-2012, 09:51 PM
MOD Resources is doing a JV with Oceana Gold at Sam's Creek, Nelson. Here's an article from NZReseources about the drilling equipment. Alton Drilling are also contractors to Glass Earth, and their helicoptered drilling platforms might come in handy at some stage. Noteworthy too, the reporter visited the site for the report.
Mod Resources gears up for busy year at Sams CreekRoss Louthean — 24 February 2012
The Australian company that has taken charge of advancing exploration on the Sams Creek gold project near Takaka in the North West Nelson region is about to begin the last of its first phase nine-hole diamond drilling programme.
MOD Resources Ltd (ASX: MOD) is earning up to 80% equity on Sams Creek – the largest undeveloped gold deposit in New Zealand – from owner OceanaGold Corporation (ASX, NZX & TSX: OGC) by taking the project through to final feasibility study.
The Alton Drilling rig was completing the second last hole when NZResources.com visited the high-country site yesterday. Once the last hole of this campaign is completed, MOD Resources will begin planning a wider drilling programme aimed at lifting the established resource of more than 700,000 ounces gold, and significant silver.
The intent is to keep the Alton rig, built by its own factory near Auckland, on site and, by mid-year, evaluate whether to bring a second drill rig now being built by Alton at its workshops.
Some of Australia’s highly skilled drilling companies could learn some logistical lessons from the Kiwi operator, which has designed a rig that can be helicoptered into mountainous country where drill pads have to be cut, assemble and then rapidly disassemble and re-locate the rig to another location on another elevated drill pad.
Linked to this is an Alton-built camp that has been designed to perch in high country for around-the-clock drilling operators which can be moved within hours to be housed near a new drilling location, where man-made paths have to be cut.
By that time MOD Resources will be aiming to expand the resource picture at Sams Creek where the company already has plans to drill away from the Main Zone that holds the established resource, and to target lightly-explored areas by predecessors Rio Tinto and OceanaGold, for a project that has been virtually idle for more than seven years.
The known resource is within a 600m zone and managing director Derek Byrne said the programme through the balance of this year will be to sample or drill up to 600m on either side of Main Zone.
One of those targets will be Carapace, which sits above the Main Zone and takes in limited early drilling by Rio Tinto subsidiary CRA Exploration almost two decades ago where the first hole in the area produced a shallow hit of 9 metres grading 9 grams/tonne gold.
Because of its apex position, initial work at Carapace may take in sampling, using a hand-held drill for shallow probes and to use a modern saw technique to take rock samples.
MOD Resources, which also has a rapidly advancing copper discovery in the emerging Botswana copper belt, is building up its exploration team and is now providing jobs for New Zealand geologists and field operators, and has its administrative headquarters with Dunedin-based project manager Paul Angus, who spent many years in senior and administrative roles with OceanaGold.
25-02-2012, 03:35 PM
Just found or rediscovered the 2011 half-year report from GEL: here's some of what they said about placer mining:
Placer exploration & mining is conducted under a 50/50 joint venture with an experienced placer miner in the Otago region (Goldmines New Zealand Ltd and the related mining company, Dunstan Mining Ltd). In Q1 2010, the first generation of cash from these placer initiatives was recorded. Costs associated with the exploration and establishment of these operations is being amortized rapidly against revenue as a conservative approach.The first placer mining at McAdies commenced in December 2009 and finished in October 2010 with the replacement operation at Gunclub commencing in December 2010.
In March 2010, Glass Earth (and Goldmines New Zealand Ltd) entered into a joint venture with Placer Gold International to carry out drilling and bulk sampling at Vinegar Hill in the Manuherikia valley (the 2 target areas are referred to as Shepherd’s Flat and Nicholson’s Lake). Historically, the site was mined by sluicing and hydraulic elevators. Placer Gold will provide up to NZ$250,000 (circa C$190,000 for each of Shepherd’s Flat and Nicholson’s Lake to prove up the resources in return for earning a 30% equity. Should Placer Gold wish, it can provide further funding of NZ$500,000 (circa C$380,000) per target for capex to earn a total of 50%. The NZ$500,000 funding is preferentially repaid out of mining profits.In October 2010, the Company purchased 50% of Dunstan Mining Ltd, thereby securing access to mining equipment and related resources. All mining equipment is held by Dunstan Mining including the 40 tonne Gold Recovery Unit leased to another mining project.
Net cash generation from the Company’s 50% share of placer operations totaled $357,000 for the year, with the Q4 contribution reduced due to rehabilitation work at McAdies and the initial set up at Gunclub. Planning is underway to commence a further 2 mining operations and a franchised arrangement – all to run concurrently with Gunclub. The leased gold recovery unit has been returned to Dunstan Mining in June 2011 and a third gold recovery unit is being built.
Q1 2011 Exploration & Mining Activity
Good revenues were gained from leasing out the Gold Recovery Unit at Earnscleugh and placer mining at Gunclub (Ida Valley, central Otago). While the net revenue of $129,000 was a welcome contribution, management is committed to a significant increase in placer gold production from this source this year. Exploration, land access, permit and resource consenting continued on several targets in the Ida, Manuheriakia and Maniototo Valleys (central Otago) in order to allow multiple operations to be run concurrently.
Q2 2011 Exploration & Mining Activity
South Island placer work comprised ongoing mining at Gunclub, a drilling campaign at Drybread (a target in the Manuherikia Valley, also in central Otago), processing of drill samples and field mapping/sampling in Southland. South Island placer mining at Gunclub continued with twenty five pits completed and assayed to define and test the western lode ahead of mining. Resource definition drilling commenced at Shepherds Flat in July. Six drill lines are planned with eight holes and 165m of drilling per line. Drybread RC drilling has continued with 144 holes completed and two additional lines planned. Processing of these drill samples is ongoing. Council resource consents have been granted in respect of Drybread and the grant of a Mining Permit is imminent. This will allow 2 further Gold Recovery Units to be deployed –complementing production at Gunclub.
Tucked inside this report is a few lines about Serpentine: two drillholes done, best result was 1 metre of 1g/tonne. It didn't reflect the surface measurements, and they're not sure why.
Last edited by elZorro; 25-02-2012 at 08:24 PM.
25-02-2012, 04:05 PM
I've added up most of the new additions from the third quarter MD&A. From the management side, it's easy to add to the existing file and send it off, but from the reader's point of view, this could be done a lot better, and it would be more interesting.
Note to management: shareholders would like to know how all of these areas are going now, well before the late April timeframe..
Mining at Gunclub encountered a lower grade section of the resource, as indicated by drilling and trenching results, with consequent lower production. The rebuild of GRU #3 is nearing completion and will be mining at Drybread in Q4. The leasing out of Gold Recovery Unit #1, ceased in mid-June as planned. This unit is to be reconfigured and is planned to also commence mining at Drybread in early 2012.
Q3 2011 Muirs Exploration Activity
A 17 hole drill program of approximately 2,345m at the Massey Reef has been approved and will commence in late November. When completed, it is expected that this programme would enable a resource calculation to be undertaken at Massey Reef.
Q3 2011 WKP Exploration Activity
Assay results from the 720m diamond drill hole, WKP 30 were received after some delays at the laboratory. These results will be the subject of a separate press release. The intersection of andesites (the preferred host for epithermal mineralization) with rhyolites, in this large and fertile system, is encouraging. A substantial infill/expansion drill program is warranted.
Q3 2011 Placer Exploration & Mining Activity
South Island placer mining at Gunclub continued although, inhibited somewhat by winter snows and the building of a large water storage dam. Production was down although the
high New Zealand gold price almost offset this. Exploration continued at Drybread with further shallow drilling and sample processing. A Mining Permit was granted for Drybread on 26 August 2011. The drilling results are very encouraging and a Gold Recovery Unit and associated plant has been moved on site with gold production expected to commence in late November. Stage 1 drilling was completed at Shepherds Flat (57 holes for 709m) and results were encouraging. Stage 2 has been planned and is expected to start in December.
Shallow drilling has also been carried out on 3 other prospects in the adjoining Maniototo Valley with good results.
Q3 2011 Other Otago Exploration Activity
A shallow drill program was undertaken at the Ophir project (50% GENZL) consisting of 17 holes across 8 individual shears identified by geochemistry and rock chip sampling, along
with complementary mapping and geophysical surveying. Initial samples have been dispatched in order to assess the best assay method, whereupon the remaining 90% of
assays will be dispatched. A draft mining plan suitable for a pilot mining program has been prepared for the Wai-iti shear zone and a plant design prepared to allow resource consenting to commence for this project.
Results from the Hindon work were encouraging with rock chip samples returning highest values of 7.4ppm Au and 6.6ppm Au which support a plan to drill late in the 4th quarter.
Overall, results from the Nokomai rock chip samples were discouraging.
All results from channel sampling at Sparrowhawk, Manorburn and Sonora Creek Quarry have been received and they do not indicate the presence of a new pre-enriched protolith as postulated.
Last edited by elZorro; 26-02-2012 at 09:51 AM.
28-02-2012, 05:02 PM
All quiet still with GEL, but in response to a polite email to Simon Henderson today, about the likelihood of some press or quarterly news releases soon, and updates to the CHFIR site, I received:
Great, this sounds good.
Re our lack of exposure to Canadian brokers: this is precisely why Justin Cochrane and Adrian Fleming have joined the team, they're both dynamic individuals with a wealth of experience and together cover all bases in the Canadian gold/finance world. They've made the same comments already - that we lack exposure, and are enthusiastic about changing that. We're also taking this chance to review and overhaul our wider IR strategy to come up with a more cohesive and proactive approach - more news, more reporting, more communication. We have exciting exploration and plans this year, and have no intention of letting ourselves and shareholders down by not communicating effectively.
29-02-2012, 05:06 AM
And an increasing POG will leverage all that effective communication.
Tomorrow's trades will prove me wise or otherwise
29-02-2012, 09:03 AM
Hi Vtrader, looks like your EWT predictions for gold are working out.
Originally Posted by Vtrader
01-03-2012, 11:00 AM
Yep, great press release overnight. GEL traded as high as 45c on the TSX, about 54c NZ at one stage.
This share is still an absolute bargain in my opinion.
Have a look at the press release: http://www.glassearthgold.com/s/News...eportID=510008
The image of the WKP area shows the magnetic alteration pattern that drew them there for more drilling. Every time they've drilled, they've found more gold, and keep repeating the mantra that this is a BIG area. How BIG? I've drawn a line around the altered space, most of which has not been drilled yet. It's roughly 3km long x 1km wide x 200metres of gold-bearing ore at various grades, so far as we know.
If each cubic metre weighs say 2 tonne, and the average grade is no worse than 1 gram per tonne (add in silver as a plus), then a back-of-the-serviette calculation comes up with 38Moz possible. This is being very optimistic, but if GEL has 35% of that, say 13Moz with a valuation of $200 per ounce in the ground, GEL has a possible MCap of $2600 million, or $39 per share.
We're many drills away from knowing for sure, but that's why I'll continue to hold this share.
02-03-2012, 08:00 AM
EZ and Vtrader,
I think we are going to enjoy our investment in GEL. Starting to look really good. A very savvy guy put me onto this one. He has given me 3 picks over the last few years. RPM ( ASX ) a 6 bagger, DIL,( NZX ), nearly a 6 bagger and now GEL. Unfortunately GEL has been slow out of the blocks but I am looking forward to big things.
02-03-2012, 12:37 PM
Liquidity is much better on the TSX, but it's another layer. In the next newsy period ahead, liquidity won't be an issue. Annual report coming up, placer income, lots more drills to hear about.
Originally Posted by SparkyTheClown
02-03-2012, 08:35 PM
And what a difference some effective communication makes.
I am going to enjoy mopping up the sells as this low liquidity stock spreads the Bid:Sell gap.
B:S ratio now 4:1, just last week it was 1:4
May even be tempted to play both sides of this one, add to the liquidity.
Tomorrow's trades will prove me wise or otherwise
03-03-2012, 08:13 AM
GEL is up strongly on the TSX at the moment (Friday), by over 10% so far. The last news release about Simon Henderson representing the company at the PDAC 2012 mining and exploration conference over the next few days in Toronto is good news for more exposure to the enthusiastic Canadian goldie market.
It will also be an opportunity for CHFIR to get the latest news updated to their client page for GEL.
PDAC 2012 boasts an attendance of over 22,000 over the four days, and I'd guess many of them will be big investors. GEL's current small Mcap with its massive permit holdings and potential should hold their attention. Here are some media images of the 2011 conference.
Here's an article by Grant Bradley, well researched, about Newmont in Waihi. It concentrates on the pressures on Newmont near the main Waihi pit. But if doing up the old Pye factory is an indication, they're keen to see their new mines through. Total spending to get to these three new deposits is over $330 million, which of course is ten times the current Mcap of GEL. No mention of WKP in the article (65% owned by Newmont for the expenditure of a few million in exploration), this might be an oversight.
Someone did note that by now, the Waihi Hill, which turned into a deep pit, was meant to be a steadily filling recreational lake for residents. Some have bought property in the town on that basis. But Newmont have been good employers and stewards of the area, there are points to be made on both sides.
Last edited by elZorro; 03-03-2012 at 01:44 PM.
03-03-2012, 05:14 PM
The key comment for me was...
Originally Posted by elZorro
The sight of Newmont Waihi Gold's humble headquarters getting a new roof is cause for celebration or dread - depending on where you live.
The leaky old former electronics factory is getting its first spruce up for years and there's a fleet of new SUVs in the carpark. Newmont is digging in.
They all know there is gold in them there hills
Tomorrow's trades will prove me wise or otherwise
04-03-2012, 04:26 PM
PDAC 2012 starts up today in Toronto, well I guess our overnight. Simon should be fairly happy with the current position of GEL's tenements. An interesting article about PDAC, cautious optimism with metal prices and outlook. Sounds like PDAC is all about the junior explorers, with many hoping to be bought out by a large player, and others hoping to make it big on their own bat.
There are some new investors buying GEL over on the TSX by the look of it. Here's a Stockhouse post from one, who indicates Newmont will have a strong interest in Glass Earth's shareprice.
With few exceptions, the juniors hope one day to either be swallowed up by a larger player or evolve into a powerhouse, following in the path of such industry giants as Barrick Gold or Teck Resources.
“PDAC is really about the explorers,” said Charles Oliver, a portfolio manager with Sprott Asset Management. “PDAC is where dreams are made or crushed.”
Last edited by elZorro; 05-03-2012 at 07:06 AM.
06-03-2012, 06:35 AM
Articles have started to appear from the PDAC 2012 convention. The consensus is that gold has plenty of years left in its bull run.
Last edited by elZorro; 06-03-2012 at 07:20 AM.
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