WELLINGTON, NEW ZEALAND--(Marketwire - Nov. 19, 2012) - Glass Earth Gold Limited ("GEG" or "the Company") (TSX VENTURE:GEL)(NZAX:GEL) is pleased to announce that it has executed a Share Sale agreement with Eurasian Minerals Inc (TSX VENTURE:EMX), securing the option to acquire the Neavesville prospect (immediately north of the WKP prospect and Martha Mine, Hauraki, New Zealand).
- 3.2 million tonnes averaging 2.7 g/t gold and 8.9 g/t silver, containing 289,000 ounces of gold and 944,000 ounces of silver near surface;
- 0.47 million tonnes averaging 7.1 g/t gold and 20.7 g/t silver containing 107,000 ounces of gold and 312,000 ounces of silver underground;
- Potential for significant additional near-surface, bulk tonnage, lower grade gold-silver mineralization occurring in association with stringer quartz veins cutting silicified breccias and volcanic rocks that form prominent bluffs, and
- Potential for the discovery of bonanza grade quartz veins at depth
Mr Henderson, Glass Earth CEO commented that "the Neavesville project offers the opportunity to have management and control over the development of a significantly advanced gold /silver project, with an already established (historic) resource, with the immediate objective to update and improve the potential of the existing Trig Bluff resource. The project also offers tantalising new targets to increase the size and potential of the prospect. Neavesville, in the vicinity of GEG's other Hauraki projects (WKP, Glamorgan, and Waihi West), will focus GEG's exploration and development efforts in the region of Newmont Waihi Gold's, Martha Hill mining operations".
Mr Henderson also welcomed the opportunity to develop this project with Mr Geoff Loudon, a well-known, New Zealand based, international explorer and mine developer. Geoff was a foundation director of Lihir Gold Limited (1995-2010), and is currently chairman of Nautilus Minerals (TSX and AIM) and L&M Energy (ASX and NZX). He has been involved in the exploration, financing and the development of numerous mineral projects in New Zealand, PNG and South America over the last 40 years.
Mr Loudon's interests will be taking a 50% interest in GEG's rights to the Neavesville project.
The Neavesville prospect consolidates a 30km² area of prospective ground in the Hauraki Goldfield under exploration permits 52-759 and 51-767 (see Figure 1). Neavesville has been actively explored by a number of exploration companies from the 1970s through 2007, including Amoco (Cyprus), CRA, Homestake, City Resources, Normandy, and Newmont. Work conducted includes:
- 63 diamond holes totalling over 8,900 meters of drilling,
- more than 1,400 rock samples,
- soil sampling grids, and
- numerous campaigns of geophysical surveys (magnetics, gravity, EM, etc.).
The largest of the gold systems defined by the historical drilling and surface geochemistry is centered on Trig Bluffs. Drill inferred historic mineral resource estimates produced in 1999 (and updated in 2001) by the (New Zealand) Institute of Geological and Nuclear Sciences were as per below. While the resource estimates were JORC compliant at that time, a Qualified Person has not performed sufficient work to classify the historic estimates as current mineral resources and Glass Earth is not treating the estimates as current mineral resources. The historic estimates should not be relied upon until they can be confirmed.
- near-surface, historic resource estimate for the "upper zone" mineralization reported as 3.2 million tonnes averaging 2.7 g/t gold and 8.9 g/t silver, containing 289,000 ounces of gold and 944,000 ounces of silver; and
- deeper, potentially underground mineable mineralization reported as 0.47 million tonnes averaging 7.1 g/t gold and 20.7 g/t silver containing 107,000 ounces of gold and 312,000 ounces of silver.
- Epithermal gold mineralisation is developed in a large multiphase breccia complex that cuts faulted volcanic and minor sedimentary sequences;
- gold/silver mineralisation is developed along steeply dipping low sulphidation quartz-adularia veins, and as pervasive and stockworks in breccia and dacite porphyry.
Please view the map on Neavesville at: http://glassearthgold.com/i/newsreleases/2012/Images/GEGL_PR_20Nov2012_Map1.jpg.
Future work planned:
- re-interpret geological model & recalculate resource potential;
- Commence resource drill programme to update and improve confidence of resources
- follow-up on additional multiple gold/silver targets identified
The Option provides for staged payments and obligations as follows:
- Immediate reimbursement of recent exploration costs (C$85,567);
- Option payment of 850 oz gold* prior to 31 Dec 2013;
- Drilling 5,000m and publication of an updated JORC/NI 43-101 compliant Resources Report within 24 months of the payment above or prior to 31 December 2015;
- Exercise of the Option to purchase the shares in the company owning the Neavesville permits and execution of an agreement to pay amounts ("Deferred Consideration") equivalent to a 2% NSR on production from the permits;
- Additional payments ("Additional Payments") at the rate of 75 oz gold* per annum, prior to exercise of the Option and 100 oz gold* after exercise of the Option, until production commences, whereupon the Deferred Consideration pertains and the Additional Payments paid are credited against 80% of the Deferred Consideration;
- Upon the production of a JORC/NI 43 101 compliant feasibility study, supporting a decision to construct a mine, payment of gold* in the ratio of 1:100 on all probable and proven reserves included in that report - up to a limit of 500,000 oz on those and subsequently reported reserves, and with payment of gold* on reserves above 500,000 oz being in a reduced ratio of 1:200.
* gold payments may also be made in equivalent US$'s at the then price of gold or in equivalent Glass Earth fully paid ordinary shares - the mode of payment to be at Glass Earth's election. Payment using Glass Earth shares would be subject to TSXV approval.
About Glass Earth Gold
Glass Earth Gold is one of New Zealand's most active gold exploration companies with landholdings proximal to world-class gold deposits and cash flow from its wholly owned placer projects. With an experienced geological team the Company is exploring promising gold prospects across both the North and South Islands. The Company held a net cash position of C$1.0 million at the end of Q2 2012.
In the North Island, exploration efforts are focused on large epithermal gold systems in the Hauraki Region, akin to the 10Moz gold equivalent Martha Hill mine, (Newmont Mining).
In the Hauraki Region, Glass Earth Gold has identified and developed significant ground positions around the active Martha Hill gold mine operations at Waihi. The Newmont-Glass Earth Gold Waihi West JV (Newmont earning in) and Hauraki JV (65/35), including drilling at the WKP discovery, are being actively explored and managed by Newmont in collaboration with Glass Earth Gold.
Glass Earth Gold has also defined several significant epithermal gold targets to independently explore in this region, including the Muirs Reef Gold project.
In the South Island, exploration efforts are focused on the Otago Region, home to OceanaGold's 7Moz Macraes Goldfield, for identification of mesothermal "Macraes-style" gold targets and revenue generation through placer (alluvial) gold production.
Mr Simon Henderson, MSc Geology (CODES), an AusIMM Chartered Professional under the Discipline of Geology; is a Qualified Person as defined by National Instrument 43-101 and an employee of the Company, has reviewed and approved the technical information given in this press release.
For more information on Glass Earth Gold, please visit www.glassearthgold.com.
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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.