Boutique gold producer and exploration company Glass Earth Gold is beginning to ramp up its Central Otago gold production, after "disappointing" production during its first quarter.
Glass Earth reaped just $C12,000 ($NZ15,446) from the operation of one gold recovery unit, for the quarter to March, but a second had been commissioned and was running at present, to be joined by the third unit shortly, Glass Earth chief executive Simon Henderson said when contacted yesterday.
Glass Earth has three alluvial (loose) gold production units planned for Maniototo and is targeting a quadrupling of weekly gold production up to 110 ounces across the three sites, - which are on target to be operating by the end of this month.
While posting a $C1.23 million loss for the quarter, Toronto and New Zealand-listed Glass Earth retains $C2.36 million cash in hand.
After an agreement in February for a buy-out of a joint-venture partner for $4 million in cash and shares, there was a proposal before the company's board to go back to the Toronto market to raise a further $NZ1.5 million, Mr Henderson said.
In spending more than $35 million in mainly South Island exploration during the past more than five years, Glass Earth has successfully gone back to the market on several occasions.
A payment to the joint-venture partner is due in about two week of $NZ1.5 million, followed by 25 monthly payments of $NZ80,0000 - totaling $3.5 million.
Mr Henderson said the cash contribution from Glass Earth's then 50% share in the sole alluvial mining operation totalled "a disappointing" $C12,000.
"[However] the full benefits of the increased throughput and 100% ownership should become apparent in the third quarter with a significant improvement in gold production and cash generated," Mr Henderson said.
In April, Glass Earth announced it had identified a fourth new Central Otago site, on the Little Rough Ridge in the Gimmerburn area of Maniototo, next to the historic Garibaldi diggings.
It had shown positive signs of hard-rock (trapped) gold deposits in bands of quartz and schist rocks and further exploration this year is being considered.
