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A first pass program of stream sediment sampling was started in the Kakanui Range (north-east Otago). 84 samples have been collected to date with 250 remaining.
A full technical review of Hindon and Game Hen 2011 drill results(and all other exploration data) was conducted. This prospectivity review concluded that the late-stage fault hosted gold mineralization at these sites occurs in narrow zones, of low grade and with poor continuity. It was deemed that further exploration work on these prospects is not warranted and the permits have been relinquished and the associated accumulated exploration costs written off.
Q1 2012 EXPLORATIONACTIVITY (Placer)
In late March 2012, GlassEarth took full ownership of its placer gold production joint venture. Settlement of the transactions took place onMarch 19, 2012. Taking full control of placer mining activities should enable the Company to significantly accelerate and increase gold production capacity.
Glass Earth is continuing with gold production at the "Gunclub" mining operation while preparing for two additional operations to commence nearby in New Zealand's Otago region. Site preparation has been completed at the "Drybread" mine site, with the second placer Gold Recovery Unit (“GRU”) mining operation being commissioned in late May 2012.
The Company is also refurbishing and upgrading its GRU #1, which is expected to be installed and running as another operationat Drybread by June 2012.
A drill program was completed at Waikaia from the 6th to the 23rd March. A total of 34 holes were drilled. Three samples returned between 500 – 650 mg/m3 and one sample of 15,300 mg/m3 gold.
A second phase drill program was completed at Shepherds Flat with the completion of 45 drill holes and a total of 558m drilled. The average wash grade was 452 mg/m3 at a depth of 14m with an average thickness of 4.5m.
Q1 2012 EXPLORATIONACTIVITY (WKP)
No drilling occurred at WKP in Q1 2012. A 5,500m drill program commenced in April 2012.
Q1 2012 EXPLORATIONACTIVITY (Muirs)
The seventeen hole Muirs Reef drill programme continued at the Massey Reed in Q1 2012.
MSDDH10 reached end of hole at 127.9m PQ core on the 5th March. The hole intersected a wide zone of weathered and altered coarse grained andesite with zones of quartz veining from 55m to 120m. This includes individual quartz veins up to 1.5mwide and areas of stockwork veining. Results from MSDDH10 include 2m at 2.6 g/t Au.
MSDDH11 reached 189.5m PQ core by the 17th March. The hole was terminated because of decreasing intensity of alteration. Results awaited.
MSDDH12 reached 49m by the end of the quarter with several metre scale quartz veins between 0 -49m within a zone of intensely altered andesite with stockwork quartz veining. Results awaited.
A review group has been selected to analyze and re-rank the Hauraki and CVR targets in Q3 2012.
Exploration Expenditures
Mineral exploration costs form the bulk of the Company’s expenditures together with placer mining development costs. Exploration activities in Q4 included drilling at Muirs and various placer targets – some exploration, some infill drilling to improve confidence. Glass Earth contributes its 35% share to exploration costs in the Hauraki JV with Newmont. Narrative descriptions of exploration activities for the year(and prior years) are set out in the previous sections.
Exploration permits at Hindon and Game Hen (Otago) were relinquished during the period and expenditures associated with them have been written off during the period.
Mining operations suffered somewhat due to attention being diverted to the rearrangement ofownership of the placer JV, with Glass Earth acquiring full control in late March 2012.
Mining at Gunclub (Gold Recovery Unit #2) continued but mining at Drybread was suspended by mutual agreement in January. A reconfigured leased GRU suitable for fine gold recovery is being commissioned at Drybread in late May. Gold Recovery Unit #1 is nearing completion of its major refurbishment and is planned to also commence mining at Drybread in June2012.
Note (to costs)
1. General and Administration costs include accounting services ($34,000), insurance ($22,000) and New Zealand office costs ($25,000).
2. Professional fees are audit fees and legal fees incurred during the period.
3. Net salaries after exploration recharges are principally composed of the costs of the full time Chief Financial Officer, most of the costs of the Data/IT manager, and 25% of the Chief Executive Officer’s salary (to reflect the split between exploration activities and the other corporate based work that he undertakes).
4. The Company is developing an improved Investor Relations program, which covers the Canadian and European investor base (including London). The objective is to ensure that the market is fully informed of Glass Earth’s progress as it enters an exciting time in itsd evelopment path. Increased expenditure on personal presentations by the CEO and internet based dissemination of information, as assisted by IR professionals in Canada and London are budgeted to continue but at a lower level.
5. An earlier AGM has pulled share registry costs associated with that forward and the number of press releases has increased relatively.
6. The external legal fees and taxation advice costs related to the acquisition of placer activities.
So don't expect too much placer cash from the second quarter either, as a leased GRU is only just now running at Drybread (is this GRU#3, the brown primer unit pictured on the GEL pages?) and GRU#1 is getting cranked up in June. But from then on more money should be flowing in.