GLASS EARTH GOLD LIMITED
QUARTERLY OVERVIEW
EXPLORATION (please refer to the individual sections following for fuller description of the exploration activities).

  • WKP gold project in Hauraki, New Zealand (Glass Earth 35%)

    Newmont and Glass Earth commenced a further 5,500m drill programme at the WKP gold-silver prospect in April 2012. Three drill holes were completed in Q2 2012; WKP32, 33 and 34. A fourth hole is in progress.

    Full assay results are expected by early September.


  • MUIRS gold project in Mamaku, New Zealand (Glass Earth 100%)

    A 17 hole drill programme of approximately 2,350m at the Massey Reef commenced in late November 2011 targeting the Muirs/Massey gold-silver bearing epithermal quartz veins to bring confidence in the resource to Industry standard (JORC/NI 43 101).
    • Drillholes MSDH12, MSDH13, MSDH14were completed within the quarter, MSDH15 continued into July 2012.
    • MSDH12intersected at a greater depth than expected, expanding the cross sectional width of known mineralisation in the central part of Massey Reef. (Press Release 31 May 2012).
    • Compilation of results and subsequent interpretation is anticipated early in September.


  • GARIBALDI gold project in Otago, New Zealand (Glass Earth 100%)

    Glass Earth announced in April 2012, that it had madea new gold discoveryat its Garibaldi project in Central Otago.
    • Exploration continued in the quarter with channel/panel sampling and detailed ground magnetic (geophysical) surveying to clearly delineate the host mafic schist and attendant structures likely to be the focus of gold mineralisation. 168 line kms of surveying was completed in a 12 day period; data has now been post processed and interpreted.
    • Planning is underway to drill this project in the third quarter 2012.

PLACER MINING - Acquisition and Growth in Otago, New Zealand

  • Mining operations took a major step forward with the establishment of two additional mining units at Drybread in Otago, successively in late May and late June. Site set-up costs and commissioning costs have been written off as incurred. This, combined with lower productivity (expected in the winter) and amortization of exploration costs, has provided a loss for the quarter.


  • Lower productivity in July (mid-winter) has improved in August.


  • The full benefits of the increased throughput and 100% ownership should become apparent in the spring/summer in New Zealand, with a significant improvement in gold production and cash generated.
The notes from the field clearly show that a raft of news is about to break for the share. GEL management tend to not put out news that often, unless it is very material. We've just come through a winter with reduced exploration options, and some assays appear to have been delayed, but will be revealed soon.

There were indeed some big setup costs for Drybread by the look of it, but the potential of those likely-looking grades, when run through two or three GRUs with a bit of recycled water, has my attention. Go for it, that's what I say