Glass Earth Gold Limited (TSX VENTURE: GEL)(NZAX: GEL) ("Glass
Earth") announces the release of its first quarter financial
statements and Management's Discussion and Analysis ("MD&A")
report pertaining to that period.
EXPLORATION UPDATE
Glass Earth progresses towards planned gold production.
- Glass Earth plans bulk testing of its McAdie Prospect, the
success of which would be a precondition to moving into initial
placer production in the Central Otago region of New Zealand.
- Active exploration campaigns of drilling, ground-based
resistivity surveys, mapping, and analysis in the Hauraki (funded
and operated by Newmont); Mamaku-Muirs; and Otago Regions (see map
below).
Newmont continues its active diamond drilling of Glass Earth's
Hauraki projects, commencing the highly prospective
Wentworth/Glamorgan evaluation in April 2009. The first of four
diamond drill holes is underway on the Goldwyn Prospect, just 17kms
from its Waihi operations, with the hole currently at 30m
depth.
Infill resistivity surveying on the Muirs/Massey Reefs is
planned to commence in July 2009 assisting in delineating two
potentially new high level vein systems adjacent to the known
Massey and Muirs reefs. Rock chips assaying up to 4.58g/t gold, and
soil geochemical anomaly's up to 458ppb gold confirm surface
evidence of the two new West Muirs and East Muirs vein systems.
Drilling is planned to follow as funding becomes available.
Otago exploration has focussed on developing prospects
highlighted in its recent targeting campaign, with emphasis on
targets recognised as having the signature of orogenic gold
mineralisation, and the size to generate large gold deposits.
Work has commenced on the Fruidburn Prospect (Southeast Otago)
following encouraging stream sediment geochemistry results.
Detailed stream sediment surveying is focussed on a 10km x 7km area
where sampling of a 540ppb BLEG (bulk leach extractable gold)
sample returned 86 grains of gold in pan concentrate, determined to
have been derived very close to source. Coincident magnetic and
resistivity anomalies rank this target highly.
Central Otago Placer Mining
Glass Earth geologists have identified that the vectors to the
major mineralizing structures, recognized to host significant hard
rock gold, lie directly under placer gold mineralisation. 175
shallow RC holes have been completed in the Ida Valley region,
leading to the focus of initial attention on the McAdie Prospect,
Poolburn.
Bulk testing of its McAdie Prospect, as a necessary precursor to
proposed placer production in the Central Otago region, is
scheduled to commence as soon as requisite land use and water use
consents are in place. Securing equipment and experienced local
personnel for placer mining operations is well advanced.
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 Company has recorded a small profit this quarter due to a
foreign exchange gain upon the transfer of 90% of remaining
Canadian dollars into the currency of operations, the New Zealand
dollar. This gain is a one-off gain and is not expected to recur
this year.
3 months ended 3 months ended
March 31 2009 March 31 2008
Operating costs (166,000) (260,000)
Interest income 8,000 25,000
Foreign exchange gain 169,000 8,000
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Net Gain/(loss) for the period $11,000 $(227,000)
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Notes:
- Cash operating costs were lower, in line with a concerted
effort to reduce general and administration overheads;
- Interest earned has dropped from $25,000 to $8,000 due to
reduced cash held and the drop in interest rates attainable;
- Cash operating costs are expected to be approximately $630,000
(NZ$0.9m) for fiscal/calendar 2009.
Qualified Persons
Glass Earth's exploration programmes are carried out under the
supervision of Glass Earth's President and CEO, 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 17,000 km2
in the North and South Islands. With its main office in Wellington,
New Zealand, Glass Earth Gold Limited is listed on the TSX Venture
Exchange (TSX VENTURE: GEL) and the New Zealand Alternative Stock
Exchange (NZAX: GEL).
To receive Company news via email, contact sasha@chfir.com and
mention "Glass Earth news" in the subject line.
To view a map of "New Zealand Permit Areas", please visit the
link below:
http://media3.marketwire.com/docs/nz_area_521.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 Simon Henderson President and
Chief Executive Officer +64 4 903 4980 info@glassearthlimited.com
www.glassearthgold.com CHF Investor Relations Lindsay Carpenter
Account Manager (416) 868-1079 x239 lindsay@chfir.com
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