AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

Thanks for that Yankiwi, I was expecting there would be a few choice bits of information in the rest of the article.

This item is written by the same reporter that produced a similar article a while back, some of the same phrases used. You have to have a bit of a sideways look at the text, and do a bit of filtering I think.

Simon sounds a bit like an insurance salesman closing the deal on a new policy, heading overseas for the CAN$3mill cheque..and Placer Gold International (German-Swiss financing) is required for a small amount of capital to help with some alluvial work.

We are all still waiting here for the annual report, which is about a month late (books closed off on Dec 31st).

One of the more interesting gems in the article:

While the precise details of Placer’s intervention are being worked out, production from the joint venture with Dunstan is advancing towards 50 ounces per week, and this will be enough to fund all Glass Earth’s basic overheads.

This implies that the weekly output from Nevills and McAdies is likely to be 50oz/week. That's a turnover of about NZ$50,000 per week. But I suspect Dunstan Mining will take overheads and costs out first, and half of the leftover (gross profit) will go to Glass Earth. But let's assume the gold is split 50/50.

The gear at each permit is running at possibly 80tonne/hr, so in an 8 hr day produces 50oz/2 sites/5days = 5oz gold. That's 0.62oz/hr, a rough grade of 0.24g/tonne. I'd expect it's better than that, and the plant is not running for a full 8 hours to recover the gold. But in any case, the grade is low.

Can this plant be run for about $620 per hour profitably? Two diggers, 3-4 people, diesel/power, breakdowns, etc, per site. It looks a bit marginal to me. It would be OK if the diggers were your own, and had already been paid off on other jobs.

WKP could be big I admit, but GEL's share would be 20%. Muirs could be the best prospect GEL has at the moment, I hope there's plenty of gold around the 1oz/tonne grade (26g/tonne) that was found when it was mined earlier. (Hmm, Muirs does look good..)

I still hold GEL, but we need good clear communication from the company, and you have to compare GEL's performance with other companies like OGC, who do have lots of proven gold in the ground, and are finding more with astonishing regularity. They have the cashflow and financing to get out there and drill for it.