Dual-listed Glass Earth Gold - which has just raised a further $6.3 million for exploration in Canada - is spending more than $1 million accelerating further geological ground sampling around its Otago tenements.
Glass Earth chief executive Simon Henderson said proceeds from a December private placement of 25 million shares in Canada, where the company is listed on the mining-friendly Toronto stock exchange, would be used for funding test drilling in the central North Island volcanic region, and ground-based exploration programmes in Otago ‘‘were being accelerated''.
‘‘We have a lot of work coming up in Otago, across a huge area,'' Mr Henderson said when contacted.
Three teams had begun ground sampling in Otago in November, which would be boosted to four teams plus more staff from the North Island once programmes there had finished, Mr Henderson said.
He estimated more than $1 million would be spent in Otago between November and late autumn as 16 staff sampled from up to 20 areas ranging from Lawrence, west of Dunedin to the Dunstan Ranges and around Macraes in East Otago.
The release of preliminary results was being delayed by minor problems in laboratory testing, but one Otago site was earmarked for potential test drilling. Mr Henderson hoped up to five drilling sites might be identified by autumn.
In July, Glass Earth completed a $4 million aerial magnetic and electro-magnetic survey of Otago covering more than 13,000sq km, searching 100m into the crust for minerals, water and other geophysical features. The Otago Regional Council contributed $1 million.
Mr Henderson said the aerial survey had identified zones similar to the geology of the Macraes open pit and underground gold mining operations of Oceana Gold Corp.
The areas covered included Rough Ridge and the northern Rock and Pillar Range prospects, plus soil sampling from an 80sq km grid at its Serpentine prospect.
Last November, Glass Earth booked a $721,000 loss for the nine months to September, but retained working capital of $2.6 million at the time.
It raised $10 million in a dual listing on the New Zealand and Toronto stock exchanges initial public offering in October 2006, wanting to generate and manage early stages of resource identification and development of world-class gold deposits.
In 2006, Glass Earth bought Dunedin-based HPD NZ, including its 22 permits covering 4724sq km.
Majority Canadian shareholder St Andrew's Goldfields agreed not to take up further shares in the recent private placement and its equity was reduced from 50.2% to 42% with the issuing of 25 million new shares.
