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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 anticipated.
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 1595oz.
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 Minerals Ltd.