Attention Business Editors:
Glass Earth Gold Limited Reports; Exploration update and interim financial statements and Management's Discussion & Analysis for the nine months ended 30 September 2008
TSX-V: GEL
NZAX: GEL
TORONTO, Nov. 27 /CNW/ - Glass Earth Gold Limited (TSX Venture: GEL;
NZAX: GEL) ("Glass Earth") today updates its Exploration activities along with
interim financial statements for the nine-month period ending September 30,
2008 together with Management's Discussion and Analysis ("MD&A") report
pertaining to that period.
Glass Earth Gold reports second gold intersection at Massey Reef (Muirs
Reef Gold Prospect)
MUIRS REEFS GOLD PROSPECT, MAMAKU REGION (last reported upon 25
September)
A high-level epithermal gold system is indicated by the broad mineralized
intersection in the first and second Diamond drill holes. In summary;
- First Diamond drill-hole intersected 30m @ 1.2 g/t Au and 6 g/t Ag,
confirming a mineralized system to 75m depth (reported 25 September);
- Second Diamond drill-hole drilled 80 m along section intersected
16m @ 1.1 g/t Au and 3.5 g/t Ag, within a broad zone of
37m@ 0.8gm/t Au and 3.5g/t Ag, confirming a mineralized system to
75m depth;
- Additional gold mineralized quartz veins intersected either side of
the broad intercept indicate potential for a stockwork of veins
between the Massey and Muirs vein systems. 3m@ 3.1g/t Au and
1.9 g/t Ag intersected at the top of MSDDH 002, relates to this
stockwork of veins apparent in recent resistivity mapping (350m
apart);
- Recent EM electrical ground surveying confirms additional resistors
indicative of new veins in the vicinity of Massey and Muirs quartz
reef, and a potential new reef system east of Muirs quartz reef;
- Quartz vein petrology indicates a high-level epithermal system with
unconstrained depth potential.
OPERATIONAL ADJUSTMENTS TO CONSERVE FUNDS
Given the market turmoil experienced in the third quarter and coincident
uncertainty in the outlook for additional equity financing at present, Glass
Earth has moved to streamline its operations to maximize exploration in the
field and minimize overheads.
Otago operations are now operating from shared facilities, retaining key
geologists and field staff. North Island field activities are running from a
field office on the Muirs Reef Prospect. The Company's General and
Administrative cash expenditures are being reduced and reduction of corporate
overheads has also been targeted.
Funds are retained to carry out exploration on key projects Muirs Reef
(NI) and Serpentine (Otago, SI).
Other exploration efforts will continue strongly through the Southern
Hemisphere summer season now commencing, with emphasis on bringing forward
encouraging surface gold results capable of being converted into resources. In
Otago in particular, exciting early prospecting results have been hampered by
seasonal lambing, fawning and spawning. Importantly, work/permit obligations
will be met.
Given these tighter operating conditions, the Company's cash of C$2.4
million, as at September 30, 2008, together with cash from or work undertaken
by contributing joint venturers, is now budgeted to carry the Company through
into mid-2010.
EXPLORATION AND DEVELOPMENT ACTIVITIES
HAURAKI REGION (Newmont JV)
Newmont field teams anticipate drilling the Karangahake South Prospect
following resistivity surveys currently underway, to better delineate targets
over soil-gold anomalies coincident veining in the vicinity of the historic
Karangahake gold deposit. Surface results have included sampling of shallow
workings with rock chip assays as high as 93 g/t Au. (Reported NI exploration
update June 08)
In the third quarter Newmont completed two holes at the Hauraki permits'
Komata prospect, encountering altered andesitic and minor rhyolitic volcanics.
Minor narrow quartz veins were observed.
As at September 30, 2008, Newmont has expended approximately 40% of the
funds required for it to earn initial 75% equities in the permits comprising
this region over three years.
MAMAKU REGION
MUIRS REEFS GOLD PROSPECT, MAMAKU REGION (last reported upon 24
September)
A high-level epithermal system is indicated by the broad mineralized
intersection in the first and second Diamond drill holes.
The breadth of the mineralized quartz veins, and the intersection of
several peripheral veins (up to 4.5 g/t Au over individual one metre
intervals) indicates the potential for a large epithermal system. The Massey
and Muirs veins lie some 350m apart, with the known Muirs veins mapped over
1500 metres (demonstrated from historical RAB/RC drilling). Recently completed
EM (gradient array) ground surveying between the two reefs has detected new
resistors indicating additional veining lies between the two vein systems. The
results of the geophysical surveys show that all of the currently known
targets at Mamaku-Muirs are part of a single continuous mineralized zone.
The success of the EM (gradient array) ground surveying in replicating
the known quartz veins, and highlighting the potential for several other
veins, in particular a large resistor east and parallel to the Muirs Reef
vein, encourages more detailed EM surveying prior to further drilling, to
determine the width and potential length of this broad epithermal system.
Contributory funds from a farm-out may be sought for drilling campaigns
following the completion of the EM survey to concentrate on the delineation of
resources in the vicinity of the Massey/Muirs vein systems.
This epithermal gold prospect conjoins the Muirs/Massey, Otawa and
Gibraltar prospects into one large continuous alteration and quartz veined
system over 5,000m in length.
OTAGO REGION
Assay results from the large summer (N. America's winter) field
programmes came through in the third quarter of 2008 allowing the exploration
team to identify drill targets at Serpentine, Sparrow Hawk, Game Hen and Gold
& Pine.
Otago Region field work during the third quarter comprised soil sampling
at Cap Burn, Stony Creek, and Argyle areas; Bleg and pan-concentrate sampling
at Argyle and Shag Valley areas. Potential for auriferous target at depth is
suggested at Stony Creek so detailed mapping will follow.
Subsequent stratigraphic drill holes at Sheep Wash, Gold & Pine and
Sparrow Hawk completed in June and July returned non-economic results; however
the stratigraphic information has proved invaluable and has directed focus to
a promising zone in Sparrow Hawk south. Field work is ongoing in this area.
GeoInformatics-style "Data Intervention" targeting and ranking exercise
using the detailed geophysical data from airborne surveying completed in 2007,
combined with the stratigraphic drilling described above has progressed to
allow prioritization of exploration efforts in the upcoming summer months.
This work highlights the Serpentine Prospect, where recent scout mapping
on surface outcrop and old alluvial workings continues to provide encouraging
rock chip gold results, with assays of 6gm/t Au and 9gm/t Au returned from
grab samples on quartz/shear zones mapped out over several hundred metres.
FINANCIAL RESULTS
At September 30, 2008, the Company had net working capital of $2,386,000
(2007: $2,364,000), including cash and equivalents of $2,394,000 (2007:
$2,625,000). Glass Earth is an exploration company and therefore classified as
being at the 'development stage,' as it has no mining or other significant
income. With all general and administration expenses being expensed, Glass
Earth records losses each year arising from expensing of these cash operating
costs as well as other non-cash expense items.
The net loss for the nine months ended September 30, 2008, was $1,026,000
(2007: ($721,000).
Mineral exploration costs, which form the bulk of the Company's
expenditures, were $917,000 for the third quarter (2007: $664,000).
On-the-ground follow-up exploration in Otago formed the bulk of exploration
expenditures. Other exploration costs were incurred principally in the Mamaku
Region and the Central Volcanic Region. Newmont is funding exploration
expenditures in the Hauraki Region under the farm-out arrangements described
previously.
Qualified Persons
Glass Earth's exploration programmes are carried out under the
supervision of Glass Earth's President and CEO, Simon Henderson, M.Sc,
M.AUSIMM, F.SEG. Mr. Henderson meets the qualified person requirements (as
defined by National Instrument 43-101) with more than 30 years of experience
in the gold mining and exploration industry.
About Glass Earth Gold Limited
Glass Earth is one of the largest New Zealand-based gold exploration
companies exploring a land position of over 17,000 km(2) in the North and
South Islands. With its main operational office in Wellington, New Zealand.
Glass Earth Gold Limited is listed on the TSX Venture Exchange (TSX.V: GEL)
and the New Zealand Alternative Stock Exchange (NZAX: GEL).
To receive Company news via email, contact sasha@chfir.com and mention
"Glass Earth news" in the subject line.
Neither 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.
%SEDAR: 00009207E
For further information: Simon Henderson, President and Chief Executive
Officer, at +64 4 903 4980 or info@glassearthlimited.com; Lindsay
Carpenter, Account Manager, CHF Investor Relations, at (416) 868-1079 x239 or
lindsay@chfir.com; Visit the Company's website at www.glassearthgold.com
.