Boutique gold producer Glass Earth Gold has tripled
quarterly revenues from gold production to more than $1 million
and estimates the present quarter will make further gains.
Glass Earth has made at least eight successful capital
raisings to spend almost $40 million in more than six years
of exploration around the country, but attaining revenues
from Central Otago have been crucial to boosting its wavering
cash flows. Glass Earth, which raised $3.7 million in private
Canadian placements last week, said for the quarter to
September it had revenues of $1.07 million, compared with
$349,000 for the previous quarter.
It posted an after-tax loss of $456,000 for the quarter,
compared with a $670,000 loss for the same period last year.
It doubled production from the alluvial gold operations in
the Manuherikia Valley in Central Otago to average 70oz-80oz
a week. Chief executive Simon Henderson said the higher
production was achieved in some lower-grade areas and its two
recovery units were now working towards higher-grade ground,
where further production increases and efficiencies were
At the end of June, Glass Earth had cash in hand of $1.25
million, which by the end of September stood at $522,000.
For the nine months to September, it achieved sales of
Mr Henderson said the cash flow from operations was covering
general and administrative expenses and modestly adding to
its exploration budget at the WKP prospect, north of the
Martha mine at Waihi in the North Island. The funds raised
last week will be used to further explore gold and silver
prospects in the central North Island, beginning with a
minimum 5000m drilling programme in a 50:50 joint venture
that holds options to buy the 30sq km block from Eurasian