AXG - Antipodes Gold [formerly GEL - Glass Earth]

[elZorro]

Glass Earth Gold to consolidate shares on issue

By Simon Hartley
Created 23/10/13

Listed gold explorer Glass Earth Gold has gained shareholder approval to consolidate the number of shares on issue, with 10 old shares to be reissued as one new share.
Glass Earth has exited its long-standing Otago exploration programmes, having spent the bulk of $40 million around the province, selling its alluvial gold operations recently for about $1.75 million to local interests to refocus on targets in the central North Island.
While having successfully recapitalised several times during the past eight years, that came at the cost of share dilution. During the past year, Glass Earth shares had traded from a 42c-high last November, to 2c or less since September.
The consolidation is still subject to approval from the Toronto stock exchange's venture exchange.
Glass Earth will resume exploration of the WKP project near Waihi, in a joint venture with Newmont Mining, while exploration activities at its Neavesville (Coromandel) project are delayed as negotiations with local iwi over access continue. simon.hartley@odt.co.nz

Over 200,000 shares sold on the TSX overnight at C1c. This values the company at just C$1mill. We know they're running low on funds, so it's little wonder the market doesn't think much of GEL in the meantime. They are going to have to endure some pain for a while.

I can't help but compare this share with XRO. They're still losing money too. The difference is the possibility of a big buyout for XRO, long before they need to get into profit. Maybe they're a lot more organised also.

[bucko]

Ive been off work sick most of last week and I was quite suprised to find that sitting in my inbox when I came back!

I haven't been holding GEL since it tanked a while ago, made a pretty loss but I've still been keeping up to date with GEL hoping something will change so I have a reason to reinvest and hopefully a change of management will be that. In regards to the lack of disclosure I completly agree, never have i ever had to wait so long, I was getting more information from ElZ and local newspapers than from the company itself.

I have always been an optomist when it comes to GEL but I've learn't from my mistakes...I'm cautiously awaiting this to pan out

[elZorro]

Ive been off work sick most of last week and I was quite suprised to find that sitting in my inbox when I came back!

I haven't been holding GEL since it tanked a while ago, made a pretty loss but I've still been keeping up to date with GEL hoping something will change so I have a reason to reinvest and hopefully a change of management will be that. In regards to the lack of disclosure I completly agree, never have i ever had to wait so long, I was getting more information from ElZ and local newspapers than from the company itself.

I have always been an optimist when it comes to GEL but I've learn't from my mistakes...I'm cautiously awaiting this to pan out

Hi Bucko, yes I agree, there has to be some point where the capital value of GEL or Antipodes reaches a low, and maybe we've seen that already. Drawing a line across alluvial or placer efforts, the company still has a valuable cluster of permits and exploration IP reasonably near the giant Martha mine at Waihi, with close-by deposits and mill infrastructure largely controlled by Newmont. Newmont don't have operations at every point on the globe, but they are here at Waihi.

I've had a closer look at the Antipodes website. This one is understated, but it makes clear that WKP exploration/infill drilling is the core business from now on, and in particular the T-stream vein. The 43-101 report for WKP produced a limited gold resource figure, but partly because the T-Stream vein area had only about 3-4 drills through it. A lot more drills are required to get confidence intervals linked up to include larger areas of ore into a resource total. When gold prices are high and junior explorers are more favoured, each inferred ounce in-ground can be priced into company valuations at $20 or more, and mining companies reach more like $200 an ounce for P&P resources.

But even at $20 an ounce, Antipodes could optimistically expect a current valuation from WKP alone of about $5mill, but of course this is more valid once it looks like a mining opportunity. Newmont will probably be looking for 300-500,000oz plus of high grade underground (they've said so in the past) - this will be the target for Antipodes, to bring WKP back into their field of vision.