Glass Earth Gold Limited (TSX VENTURE: GEL)(NZAX: GEL) ("Glass
Earth" or the "Company") announced today that it has filed its
March 31, 2011 first quarter Financial Statements and associated
Management's Discussion and Analysis ("MD&A") report pertaining
to that period with regulatory authorities.
Glass Earth Gold's determination to create revenue from its
placer operations, to support its objectives as a hard-rock gold
explorer in New Zealand, is demonstrated in a significantly lower
loss for the quarter ($61,000 vs $193,000 in 2010) principally due
to increased revenue from placer mining operations. Placer mining
expansion in 2011 should see a significant increase in both gross
and net revenue. The Company's cash position as at March 31, 2011
was $3,801,000.
This positions the Company well as it continues to report
encouraging results from its WKP WEST gold prospect in the Hauraki
Region (reported May 12, 2011).
Glass Earth is a gold exploration company and therefore
classified as being at the 'development stage', as it currently has
modest mining income. With all general and administration expenses
being expensed, Glass Earth records losses each quarter/year
arising from the expensing of these cash operating costs as well as
other non-cash expense items.
3 months ended 3 months ended
March 31 2011 March 31 2010
Revenue 251,000 100,000
Cost of revenue (122,000) (94,000)
------------------ ------------------
Gross profit 129,000 6,000
Cash operating costs
General & admin 203,000 206,000
Finance costs (gain) (13,000) (7,000)
------------------ ------------------
190,000 199,000
Non-Cash expenses
Write down Mineral Properties - -
Stock based compensation - -
Income tax expense/(benefit) -
deferred - -
------------------ ------------------
------------------ ------------------
Net loss for the period 61,000 193,000
------------------ ------------------
------------------ ------------------
Operational Activities
Field operations concentrated on the testing of Glass Earth's
two most advanced prospects WKP West (65% Newmont Mining / 35% GEG;
Newmont managed) and Muirs Reefs (100% GEG) in the North Island,
and drilling of the Serpentine prospect in the South Island.
Encouraging assay results for drill hole WKP 27 were released May
12, 2011 with assay results awaited in respect of WKP 28 and two
further drill holes into Serpentine.
In addition, metallurgical testing and test plant design on the
Ophir Project (50% GEG/50% Ophir Gold) is nearing completion.
Expansion of alluvial/placer gold mining in the Central Otago
region is a strong focus as current mining operations bed down.
About Glass Earth Gold Limited
Glass Earth is one of the largest New Zealand-based gold
exploration companies exploring a land position of approximately
10,000 square kilometres in the North and South Islands.
In the North Island, exploration efforts are focused on large
epithermal gold systems in the Hauraki/Central Volcanic Region.
This Region is host to the 10 million ounce Martha Gold Mine,
(Newmont Mining).
Hauraki Region - Glass Earth occupies a significant ground
position around Newmont's currently active Waihi gold operations;
The Newmont-Glass Earth Waihi West JV (Newmont earning 60%) and
Hauraki JV (North and Central Areas - 65/35) are currently being
explored and managed by Newmont. Exploration at the WKP gold
prospect is ongoing following the very encouraging 2010 drilling
results on that prospect.
Central Volcanic Region - Glass Earth has defined several
significant epithermal gold targets in this region including the
Muirs Reef project (Mamaku district).
In the South Island, exploration efforts are focused on the
Otago Region for mesothermal "Macraes-style" gold targets and
alluvial gold.
Otago Region - Field programmes to support the drilling of
highly ranked Game Hen gold target is underway.
Two alluvial mining operations continue into the 2011 year,
coupled with an acceleration of alluvial exploration and resource
definition; Glass Earth / Dunstan Mining (placer mining 50/50
partner) anticipate a significant increase in gold output in
2011.
To receive Company news via email, contact jennie@chfir.com and
mention "Glass Earth news" in the subject line.
GLASS EARTH GOLD LIMITED
For the three months ended March 31, 2011
QUARTERLY OVERVIEW
-- Exploration -WKP gold prospect in Hauraki, New Zealand (Glass Earth 35%)
- Follow-up drilling of the encouraging results from the 2010 diamond
drilling at WKP West was completed. The first of the 2 holes (WKP 27)
intersected 1.4m @ 30.7 g/t Au and 77.7 g/t Ag within an extended
intersection of 152.4m @ 1.16 g/t Au. Assay results of WKP 28 are
awaited.
-- Ophir gold prospect in Otago, New Zealand (Glass Earth 50%) - Additional
work is being undertaken as a pre-requisite to a formal proposal for
capex and mining for the consideration of the Joint Venture.
-- Mining Operations - cash contribution from the Company's placer mining
operation (including the lease of a Gold Recovery Unit) totaled $129,000
for the three months ended March 31, 2011 (March 31, 2010 - $6,000).
-- Financial results - The net loss for the three months ended March 31,
2011 was $61,000 (March 31, 2010 - $193,000).
The Company's cash position as at March 31, 2011 was $3,801,000.
Near Term Outlook -
- WKP West - WKP 28 drilling assay awaited; analysis and
interpretation to underpin future exploration initiatives including
additional step-out drilling.
- Muirs - 5 hole diamond/RC drilling program completed in Q1.
Further trenching over the recently detected high surface gold
values (up to 17 gm/t Au in situ rock chips) has commenced in April
2011 prior to recommended further drilling.
- Serpentine - 2 diamond drill holes completed; assays
awaited.
- Ophir - Mining decision pending.
- Placer production - Replacement placer mine successfully in
production since December 2010. Resource definition on several
other prospects is underway. Third gold recovery unit being
built.
To view the map associated with this press release, please visit
the following link:
http://media3.marketwire.com/docs/map524glass.pdf
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of 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
CHF Investor Relations Jeanny So Director of Operations +1 416 868
1079 x225 jeanny@chfir.com Visit the Company's website at
www.glassearthgold.com
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