AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

Googled up this short interview with Simon Henderson, and just the few words are filling in some gaps.

http://www.menafn.com/menafn/qn_news...-03f511ad0db1}

Targeting 1Moz+ at Muirs, and of course it's 100% owned by GEL. Some of the gold is very shallow, and it's worth a lot more than when it was last mined, then purely taking out the bonanza grades before flooding set in. Muirs should be worth about as much as WKP to GEL, even if WKP goes over 3Moz. Still the issue of getting someone to front up with capital to mine it though.

On a day like today, when Heritage Gold is making scary moves, I'm pleased to be an investor with Glass Earth.

[elZorro]

From NZResources:

Glass Earth Gold sees WKP as having scope for 3 M ounces

Ross Louthean — 13 April 2012
Being an explorer with cash flow and substantial gold permits throughout New Zealand were two positive pointers detailed by Glass Earth Gold (TSX-V & NZAX: GEL) to the investor resource media group Stockhouse.

In a question and answers session Glass Earth’s chief executive Simon Henderson said the company also had the advantage of being a gold producer – from placer operations in Otago – to help fund its search process.
Henderson said New Zealand was chosen because of its “huge gold potential,” its strong gold mining history and the evidence shown by two large gold mines – Martha on the North Island and Macraes on the South.
Glass Earth Gold’s two leading projects were the 35% owned WKP gold discovery with Newmont Waihi Gold near Waihi and the 100% owned Muirs Reef project, further south in the Hauraki goldfield.
Henderson said WKP was advancing and could have potential to be a +3 million ounce project. The first hole there showed the size of the system with 156.1m grading 1.6 grams/tonne gold, and recent holes included high grade hits such as 3.2m @ 37 g/t Au.
He said work in the past year at Muirs Reef demonstrated a 650m long strike length of surface mineralization. The company was now undertaking a 2,500m diamond drilling programme to identify the depth and strike extent of this system.
Henderson said the company has about $C2 million ($NZ2.43 M) on hand with a burn rate of around $C120,000 ($NZ146,250) per month and much of this is being funded from placer mining profits.
Source: stockhouse.com

Here's the link to the item on Stockhouse.

In fact the wording from Simon Henderson was that WKP certainly has the potential for +3Moz.

The importance of this, is that 2-3 Moz is the stated trigger level for Newmont to be interested in opening up a new mine significantly removed from its current infrastructure. I had wondered why there was more buy interest over on the TSX for the last 2 days. GEL moving a bit higher today, still near the price of those C35c options.

I have emailed Simon with some questions yesterday, and true to form, I have very promptly received good answers from him directly. Here's one.

Q. With all the share options coming through at C35c, is Glass Earth keen to see these picked up, or in view of dilution to your own holdings, happy to see them left? What is the most likely outcome?

A.Yes, we certainly want them to be picked up,however it will be good to remove the “overhang” one way or the other. Dilution may result but "cash is king". The investment market for our kind of stock is fickle at the best of times and right now is especially challenging, so it would be foolish to turn down this capital. I'm in fact about to visit the Northern Hemisphere to talk with key warrant holders and the wider market, it's important we effectively communicate our progress and this year's potential. We're confident many of the warrants will be exercised but this is largely in the market's own hands.

[elZorro]

I have been following the story behind the big GRU#1 for a few years now. First I couldn't understand why it was leased out after it had been refurbished by Dunstan Mining. It turns out it was probably being operated then, by the previous owner. Once it came off lease (to be replaced with a bigger unit on L&M's permit at Earnscleugh), it seems to have sat around for most of a year, when GEL could have generated placer income from multiple permits. I assumed there was something badly wrong with the plant. I asked Simon Henderson about this.

Q. Why has GRU#1 been out of action for so long? Surely its effect on cashflow will be immediate if working in the right area, so why the 12 month delay?

A. Could not agree more. We ourselves would have liked to have the plant working many months ago but, put simply, this was stymied by our then JV partner (who was really only comfortable with single plant operations). This is all history now, it was a little worse for wear on return so we are in the process of a significant refurbishment to the plant to put it into production alongside other operations in or before early June. (Second plant in and running next week, the big plant on probably the most important high grade resource as soon as possible).

If I read this right, the heavy use on the L&M permit during the lease will have worn out some of the metal-handling surfaces and wear parts. If GRU#1 is the 'big plant', then Drybread is also 'the most important high grade resource'. It looks like the unit will be operating by early June, rather than late June. That's only 6-7 weeks away. At least we're on track now - possibly Dunstan Mining was too short on capital before, to make much headway with the fitout for another placer operation.

Q2 2011 Exploration & Mining ActivitySouth 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.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 Placer Exploration & Mining ActivitySouth 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.

Looking again at Drybread, GEL now has its own shallow RC drilling rig I think, and more than 144 drills have been assayed at Drybread in 2011, with the results being "very encouraging". Here's the permit map, and the satellite photo. Looks like flat ground, great road access, 877 Ha, that's a big mining permit.

This page from the GEL website shows the shallow drilling rig in use, could be at Drybread.

http://www.glassearthgold.com/s/Proj...eportID=450554