Explorer and boutique producer Glass Earth Gold has taken an
option to buy a gold and silver prospect north of the Martha
mine in the central North Island, in a 50:50 venture with
mining entity Geoff Loudon.
If access agreements can be struck, Glass Earth hopes to
initiate a "minimum" 5000m drilling programme in the 30sq km
block later this summer, which is mainly felled forest area
criss-crossed with logging tracks for access, as opposed to
expensive helicopter-borne transporting.
Dual-listed Glass Earth, which is producing alluvial gold
from tenements in the Maniototo, is expanding its central
North Island prospects from three to four in holding its
option on the Neavesville tenement. Glass Earth shares were
up more than 20% after the announcement, at 33c.
Glass Earth chief executive Simon Henderson said Neavesville
offered an opportunity to manage and control an established
historic resource with the "immediate objective" to update
and improve data on the potential estimated resource.
Between the 1970s and 2007, numerous companies explored the
area, but none of them subsequently went into production.
Glass Earth director Peter Liddle said when contacted once
the estimated resource was updated to new international
standards, a decision would be made on acquiring Neavesville
from Eurasian Minerals Ltd, which had held the tenement for
less than a year.
Historically, the area is estimated, from 63 drill holes
totalling 8900m, to have an estimated resource of 289,000
ounces of gold and 944,000 ounces of silver, including one
estimate of a gold average of 7.1g of gold per tonne, or
107,000oz from 470,000 tonnes of ore.
New Zealand-based Mr Loudon is an international explorer and
mine developer, having been a foundation director of Lihir
Gold Ltd, and is at present chairman of Nautilus Minerals and
L&M Energy. Mr Loudon's New Dawn Energy Ltd launched a
full takeover bid for the latter company in early November.
At the end of June, Glass Earth held $C1 million ($NZ1.25
million) in cash.
In late June, Glass Earth clinched $2.95 million in a private
placement to refinance the $4 million buyout of its former
Otago joint venture partner, then in early October raised a
further $456,000 in private placement, out of Canada.