Glass Earth Gold Limited ("GEG" or "the Company") (TSX
VENTURE:GEL)(NZAX:GEL) is pleased to announce that it has executed
a Share Sale agreement with Eurasian Minerals Inc (TSX
VENTURE:EMX), securing the option to acquire the Neavesville
prospect (immediately north of the WKP prospect and Martha Mine,
Hauraki, New Zealand).
Highlights
-- 3.2 million tonnes averaging 2.7 g/t gold and 8.9 g/t silver, containing
289,000 ounces of gold and 944,000 ounces of silver near surface;
-- 0.47 million tonnes averaging 7.1 g/t gold and 20.7 g/t silver
containing 107,000 ounces of gold and 312,000 ounces of silver
underground;
-- Potential for significant additional near-surface, bulk tonnage, lower
grade gold-silver mineralization occurring in association with stringer
quartz veins cutting silicified breccias and volcanic rocks that form
prominent bluffs, and
-- Potential for the discovery of bonanza grade quartz veins at depth
Mr Henderson, Glass Earth CEO commented that "the Neavesville
project offers the opportunity to have management and control over
the development of a significantly advanced gold /silver project,
with an already established (historic) resource, with the immediate
objective to update and improve the potential of the existing Trig
Bluff resource. The project also offers tantalising new targets to
increase the size and potential of the prospect. Neavesville, in
the vicinity of GEG's other Hauraki projects (WKP, Glamorgan, and
Waihi West), will focus GEG's exploration and development efforts
in the region of Newmont Waihi Gold's, Martha Hill mining
operations".
Mr Henderson also welcomed the opportunity to develop this
project with Mr Geoff Loudon, a well-known, New Zealand based,
international explorer and mine developer. Geoff was a foundation
director of Lihir Gold Limited (1995-2010), and is currently
chairman of Nautilus Minerals (TSX and AIM) and L&M Energy (ASX
and NZX). He has been involved in the exploration, financing and
the development of numerous mineral projects in New Zealand, PNG
and South America over the last 40 years.
Mr Loudon's interests will be taking a 50% interest in GEG's
rights to the Neavesville project.
The Neavesville prospect consolidates a 30km2 area of
prospective ground in the Hauraki Goldfield under exploration
permits 52-759 and 51-767 (see Figure 1). Neavesville has been
actively explored by a number of exploration companies from the
1970s through 2007, including Amoco (Cyprus), CRA, Homestake, City
Resources, Normandy, and Newmont. Work conducted includes:
-- 63 diamond holes totalling over 8,900 meters of drilling,
-- more than 1,400 rock samples,
-- soil sampling grids, and
-- numerous campaigns of geophysical surveys (magnetics, gravity, EM,
etc.).
The largest of the gold systems defined by the historical
drilling and surface geochemistry is centered on Trig Bluffs. Drill
inferred historic mineral resource estimates produced in 1999 (and
updated in 2001) by the (New Zealand) Institute of Geological and
Nuclear Sciences were as per below. While the resource estimates
were JORC compliant at that time, a Qualified Person has not
performed sufficient work to classify the historic estimates as
current mineral resources and Glass Earth is not treating the
estimates as current mineral resources. The historic estimates
should not be relied upon until they can be confirmed.
-- near-surface, historic resource estimate for the "upper zone"
mineralization reported as 3.2 million tonnes averaging 2.7 g/t gold and
8.9 g/t silver, containing 289,000 ounces of gold and 944,000 ounces of
silver; and
-- deeper, potentially underground mineable mineralization reported as 0.47
million tonnes averaging 7.1 g/t gold and 20.7 g/t silver containing
107,000 ounces of gold and 312,000 ounces of silver.
-- Epithermal gold mineralisation is developed in a large multiphase
breccia complex that cuts faulted volcanic and minor sedimentary
sequences;
-- gold/silver mineralisation is developed along steeply dipping low
sulphidation quartz-adularia veins, and as pervasive and stockworks in
breccia and dacite porphyry.
Please view the map on Neavesville at:
http://glassearthgold.com/i/newsreleases/2012/Images/GEGL_PR_20Nov2012_Map1.jpg.
Future work planned:
-- re-interpret geological model & recalculate resource potential;
-- Commence resource drill programme to update and improve confidence of
resources
-- follow-up on additional multiple gold/silver targets identified
The Option provides for staged payments and obligations as
follows:
1. Immediate reimbursement of recent exploration costs (C$85,567);
2. Option payment of 850 oz gold(i) prior to 31 Dec 2013;
3. Drilling 5,000m and publication of an updated JORC/NI 43-101 compliant
Resources Report within 24 months of the payment above or prior to 31
December 2015;
4. Exercise of the Option to purchase the shares in the company owning the
Neavesville permits and execution of an agreement to pay amounts
("Deferred Consideration") equivalent to a 2% NSR on production from the
permits;
5. Additional payments ("Additional Payments") at the rate of 75 oz gold(i)
per annum, prior to exercise of the Option and 100 oz gold(i) after
exercise of the Option, until production commences, whereupon the
Deferred Consideration pertains and the Additional Payments paid are
credited against 80% of the Deferred Consideration;
6. Upon the production of a JORC/NI 43 101 compliant feasibility study,
supporting a decision to construct a mine, payment of gold(i) in the
ratio of 1:100 on all probable and proven reserves included in that
report - up to a limit of 500,000 oz on those and subsequently reported
reserves, and with payment of gold(i) on reserves above 500,000 oz being
in a reduced ratio of 1:200.
(i) gold payments may also be made in equivalent US$'s at the then price
of gold or in equivalent Glass Earth fully paid ordinary shares - the
mode of payment to be at Glass Earth's election. Payment using Glass
Earth shares would be subject to TSXV approval.
About Glass Earth Gold
Glass Earth Gold is one of New Zealand's most active gold
exploration companies with landholdings proximal to world-class
gold deposits and cash flow from its wholly owned placer projects.
With an experienced geological team the Company is exploring
promising gold prospects across both the North and South Islands.
The Company held a net cash position of C$1.0 million at the end of
Q2 2012.
In the North Island, exploration efforts are focused on large
epithermal gold systems in the Hauraki Region, akin to the 10Moz
gold equivalent Martha Hill mine, (Newmont Mining).
In the Hauraki Region, Glass Earth Gold has identified and
developed significant ground positions around the active Martha
Hill gold mine operations at Waihi. The Newmont-Glass Earth Gold
Waihi West JV (Newmont earning in) and Hauraki JV (65/35),
including drilling at the WKP discovery, are being actively
explored and managed by Newmont in collaboration with Glass Earth
Gold.
Glass Earth Gold has also defined several significant epithermal
gold targets to independently explore in this region, including the
Muirs Reef Gold project.
In the South Island, exploration efforts are focused on the
Otago Region, home to OceanaGold's 7Moz Macraes Goldfield, for
identification of mesothermal "Macraes-style" gold targets and
revenue generation through placer (alluvial) gold production.
Qualified Person
Mr Simon Henderson, MSc Geology (CODES), an AusIMM Chartered
Professional under the Discipline of Geology; is a Qualified Person
as defined by National Instrument 43-101 and an employee of the
Company, has reviewed and approved the technical information given
in this press release.
For more information on Glass Earth Gold, please visit
www.glassearthgold.com.
To receive Company news via email, contact erica@chfir.com and
mention "Glass Earth news" in the subject line.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) nor New Zealand Exchange Limited has reviewed
this release and neither accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Glass Earth Gold Limited Simon Henderson President and
Chief Executive Officer +64 4 903 4980info@glassearthgold.com
www.glassearthgold.com CHF Investor Relations Jeanny So Director of
Operations +1 416 868 1079 x 225jeanny@chfir.com