Exploration company Glass Earth Gold is forecasting "significant" revenue increases this year from its boutique mining operation in Otago - with more than $C4.4 million ($NZ5.7 million) cash on hand for 2011 operations.
For the calendar year 2010, Glass Earth booked a loss of $C1.47 million, compared with $C2.67 million the year before, but during the year it raised $NZ6.2 million and as of December 31 retained a total $NZ5.75 million; $C3.9 million ($NZ5.09 million) of Toronto funding and another $C500,000 ($NZ653,700) raised in January.
Glass Earth Gold chief executive Simon Henderson said placer [loose gold] mining during 2010 made its first, albeit "modest", contribution to the company's bottom line, generating $NZ357,000 cash.
"Placer mining expansion in 2011 should see a significant increase in both gross and net revenue," Mr Henderson said in a statement yesterday.
Between the increased income from placer mining and fundraising, Glass Earth was now in a "strong position" for drilling in 2011.
Field operations during the year concentrated on the testing of Glass Earth's two most advanced prospects in the North Island, WKP West with 65% joint venture Newmont mining and Muirs Reefs project, which is 100% Glass Earth owned, plus drilling of the Serpentine project in East Otago.
Mr Henderson said in addition there had been metallurgical testing and test plant design for a project near Ophir, a 50:50 venture with Ophir Gold Ltd. "Expansion of alluvial/placer gold mining in the Central Otago region is a strong focus as current mining operations bed down," he said.
Two alluvial mining operations continue into the 2011 year, coupled with an acceleration of alluvial exploration and resource definition, in a 50:50 joint venture with Dunstan Mining Ltd. Mr Henderson anticipated a "significant increase in gold output in 2011".
