AXG - Antipodes Gold [formerly GEL - Glass Earth]

[bucko]

totally agree sparky, i think its so undervalued its crazy! and im under the impression this is the lowest the share price has ever been on the NZX so something is going on, why else would someone sell at a loss??????????

[elZorro]

totally agree sparky, i think its so undervalued its crazy! and im under the impression this is the lowest the share price has ever been on the NZX so something is going on, why else would someone sell at a loss??????????

Bucko, the price is low, but then there are a lot more shares kicking around, so the MCap is quite a bit bigger than it was during the 2008 low.

I agree the price should kick back up. What does GEL have that other juniors lack? A 35% share in a large resource, WKP, in a relatively easy jurisdiction.

An adviser called Rick Mills has this to say about gold discoveries..

There's a huge increase in exploration spending (more than $8 billion ($8B) in 2011) but a serious lack of new discovery. There have been very few large, high-grade deposits discovered during the past few years. Barrick Gold Corp. (ABX:TSX; ABX:NYSE) said at the Precious Metals Conference 2012 that of the "super giant" discoveries, those that are more than 20 million ounces (Moz), 18 were discovered in the 1900s. Fast-forward to the 1980s when 14 were discovered. In the 1990s, 11 were discovered. In the 2000s, only five were uncovered.

The number of annual gold discoveries of more than 5 Moz since 2007 is six in 2007, one in 2008, one in 2009, three in 2010 and one in 2011. None is producing yet. A lot of people who think that they're going to produce are in for a disappointment because of resource nationalism, permitting problems, environmental problems, lack of water, labor unrest and protests.

TGR: Assuming gold demand will continue to escalate due to macroeconomic pressures, will the price of gold continue to increase?
RM: Gold demand is still rising. Five-year average quarterly demand is rising, so that's correct.
TGR: What do you forecast for the 2013 gold price?
RM: That's a mug's game, trying to predict gold prices, but it'll be higher.
TGR: You believe the price of gold can only go up.
RM: That's right. Inflation, world events, diversificationgold does offer leverage. So do equities, or at least they will again. I'm not looking at huge mines with billions and billions of dollars in capex. I'm much more comfortable with the smaller mines with lower capex and under-control operating expenditures. I like the lowest-cost producers. That's where the money is going to be made over the next two years.
TGR: Canada, the U.S. and some places in Latin America are the preferred jurisdictions for risk reduction, infrastructure, rule of law and reliability of government.
RM: Absolutely. Look at the Muslim Brotherhood in Egypt canceling a nearly 20-year-old license for a mining company. In Madagascar, a DJ gets elected president and the first thing he wants to do is cancel permits and do a review. That's not happening in Canada, the U.S. or politically stable places like Greenland. There is enough risk in this business as it is without intentionally inviting more.
TGR: Given that backdrop, what are some companies you find interesting right now?
RM: Let's stick with soon-to-be producers or companies that are going to be very low-cost producers. They're all in geopolitically acceptable countries with superior management teams.

According to a July 2012 research report by Natural Resource Holdings, there are only 164 undeveloped gold deposits globally, with more than 1 Moz of gold in all categories, that are owned by non-major mining companies. The average grade of all these deposits is 0.66 grams per ton (g/t). Since we're mining +80 Moz a year, that makes these non-major-owned deposits quite valuable.

At various times people have mentioned WKP as possibly holding over 5Moz, maybe up to 10Moz. Current knowledge on deposits implies that having an average-sounding grade of just over 0.66g/tonne is in the ball-park, if it's a big resource.

NZResources today:

Another wide intersection from WKP gold project

7 December 2012
A new deep diamond drill hole into the WKP gold-silver prospect near Waihi has produced another wide intersection.
The 35% owner of the prospect, Glass Earth Gold Ltd (NZAX & TSX-V: GEL) reported that hole WKP35 hit 227.5 metres grading 0.53 grams/tonne gold and 1 g/t silver, including a 1.1m section @ 20.1 g/t Au and 10.7 g/t Ag.
This result, said Glass Earth Gold, further demonstrated there is a large permissive gold system with scope to host a significant epithermal gold deposit.
The project is a joint venture with regional gold miner Newmont Waihi Gold through its parent company Newmont Mining.
Managing director of Glass Earth Gold, Simon Henderson said that the upper section of broad low grade gold mineralisation intersected in this drill hole was adjacent to the East Graben gold-bearing zone which exhibits features of Martha–Favona-Golden Cross style epithermal gold mineralisation
“This project continues to surprise with the demonstration of its large scale and coherent gold and silver mineralised widths,” Henderson said.
“Every drill hole completed by the joint venture has intersected significant mineralisation and demonstrated potential for both narrow (3-9m) high grade gold veins and/or broad low grade mineralisation (in excess of 100m of +1 g/t gold).
“The intersection of this broad low grade mineralisation adjacent to the new Eastern Graben structure identifies yet another zone, or additional extensions of the Eastern zone of the WKP project.
“Step-out drill testing is already underway”.
Newmont Waihi Gold’s Martha gold mine is 10 kilometres south of WKP, and is widely regarded as the type-system for epithermal gold deposits. The mine, currently in production has about 10 M oz gold equivalent in historic production and current resources.
The now mature Favona underground mine is a satellite deposit associated with the Martha system.
Glass Earth said WKP is a large, 3 km by 1.5 km mineralised alteration zone.
The current drill programme by the partners is budgeted to cost $C3.3 M ($NZ4.03 M) with Glass Earth bearing 35% of that cost.