Glass Earth Gold Limited: Financial Statements and Management's Discussion & Analysis for the Year Ended 31 December 2007
March 18 2008 - 10:56AM
Marketwired
TORONTO, CANADA (NZAX: GEL) ("Glass Earth") announces the
release of its December 31 2007 year end financial statements and
Management's Discussion and Analysis ("MD&A") report pertaining
to that period.
OPERATIONAL ACTIVITIES
During the 2007 fiscal year, Glass Earth continued with its very
active exploration campaigns, including undertaking New Zealand's
largest ever airborne geophysics campaign covering over 13,000
square kilometres in the Otago region of the South Island, New
Zealand.
Total exploration expenditures amounted to $7m (NZ$9.2m) of
which $2.1m (NZ$2.7m) was contributed by other parties. Net
exploration costs of $4.9m (NZ$6.4m) were capitalised for the
year.
Glass Earth concluded joint venture agreements with Newmont's
Waihi Gold Company Limited (Hauraki Region); New Zealand Minerals
Ltd (Otago Region); GCO Minerals Company (Central Volcanic Region)
and agreed terms with two other parties in the Otago Region. A
further agreement with the Otago Regional Council resulted in a
contribution of approximately C$0.8m (NZ$1m) towards the C$3.2m
airborne survey in return for access to the geophysical data base
arising from that survey.
Glass Earth has a permanent staff of 18 people, peaking at 30
employees during the exploration season, complemented periodically
by specialist consultants/contractors.
The extent and results of exploration activities are
periodically reported separately.
FINANCIAL RESULTS
Glass Earth is an exploration company and therefore classified
as being at the 'development stage', as it has no mining or other
significant income. With all general and administration expenses
being expensed, Glass Earth records losses each year arising from
the expensing of these cash operating costs as well as other
non-cash expense items.
The net loss for the year includes significant non-cash items:-
12 months ended 7 months ended
December 31 December 31
2007 2006
Cash operating costs
Operating loss 884,000 622,000
Foreign exchange gain (9,000) (270,000)
-------- ---------
875,000 352,000
Non- Cash expenses
Write down Mineral Properties 619,000 -
Stock based compensation 382,000 535,000
Income tax expense (deferred) 810,000 -
--------
1,811,000
--------------- ---------------
--------------- ---------------
Net loss for the year/period 2,686,000 887,000
--------------- ---------------
--------------- ---------------
Notes:
- Cash operating costs are expected to be approximately $900,000 (NZ$1.1m)
for 2008.
- Write-off of capitalised exploration expenses of $619,000 (NZ$0.8m) in
relation to relinquished ground;
- Fair value estimate of $382,000 (NZ$0.5m) for incentive stock options
granted to directors, staff and consultants;
- Deferred income tax expense of $810,000 (NZ$1.05m).
Glass Earth recently raised $5m (NZ$6.2m) by issuing shares and
warrants by private placement (in Dec/Jan) and is budgeted to be
fully funded for its operating and exploration activities through
the first quarter of 2009.
Qualified Persons
Glass Earth's exploration programmes are carried out under the
supervision of Glass Earth's VP Exploration and Chief Operating
Officer, Mr. Simon Henderson, M.Sc, M.AUSIMM, F.SEG. Mr. Henderson
meets the qualified person requirements (as defined by National
Instrument 43-101) with more than 30 years of experience in the
gold mining and exploration industry.
About Glass Earth Gold Limited
Glass Earth is one of the largest New Zealand-based gold
exploration companies exploring a land position of over 27,000
square kilometres in the North and South Islands.
In the North Island, exploration efforts are focused on the
Hauraki / Central Volcanic Region. The Hauraki / Central Volcanic
Region is host to the 10 million ounce gold Waihi / Martha Mine,
owned by Newmont Mining, which is considered the "type" epithermal
gold deposit and the kind of large epithermal gold system targeted
by Glass Earth.
- Hauraki Region - With advanced gold prospects, this region
occupies a significant ground position around the Waihi / Martha
Mine; Newmont has commenced earning into the Glass Earth permits
via two Joint Ventures: the Waihi West permit, immediately adjacent
to the Waihi / Martha Mine; and the surrounding Hauraki Region
permits.
- Mamaku Region - With recently-defined gold targets, this
region includes the Muirs Reef prospect, which historically
produced more than 43,000 ounces of gold;
- Central Volcanic Region -- Glass Earth has defined a number of
epithermal gold targets in this region, including advanced
prospects in the process of being drilled.
In the South Island, exploration efforts are focused on the
Otago Region for mesothermal "Macraes-style" gold targets and
alluvial gold.
- Otago Region - A major data collection/geophysical survey over
this region was completed in August 2007. It is being followed by a
targeting process to identify priority areas of gold potential for
detailed on-ground evaluation (which commenced in November 2007).
Drilling is anticipated in the 2nd quarter 2008.
Glass Earth Gold Limited, with its main operational office in
Wellington, New Zealand; field offices in Rotorua (North Island)
and Dunedin (Otago, South Island) and corporate office in Toronto,
Canada; is listed on the TSX Venture Exchange (TSX VENTURE: GEL)
and the New Zealand Alternative Stock Exchange (NZAX: GEL).
To view the "Glass Earth Exploration Projects Map", please visit
the following link:
http://media3.marketwire.com/docs/Glass-Earth.pdf
Neither the TSX Venture Exchange nor New Zealand Exchange
Limited has reviewed this release and neither accepts
responsibility for the adequacy or accuracy of this release.
Contacts: Glass Earth Gold Limited Peter Liddle Chief Financial
Officer +64 9 360 8211 Email: peter.liddle@glassearth.co.nz Glass
Earth Gold Limited Glenn Laing Chief Executive Officer and
President (416) 368-7220 Email: glaing@glassearthlimited.com
Website: www.glassearthlimited.com
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