WELLINGTON, NEW ZEALAND--(Marketwire - April 29, 2011) - Glass Earth Gold Limited (News - Market indicators)(NZAX:GEL) ("Glass Earth" or the "Company") announced today that it has filed its December 31, 2010 Year End Financial Statements and associated Management's Discussion and Analysis ("MD&A") report pertaining to that period with appropriate regulatory authorities.
As advised on April 12, 2011, Glass Earth has early-adopted International Financial Reporting Standards ("IFRS") effective for fiscal 2010. There were no significant differences between Canadian GAAP and NZ IFRS or IFRS, given the nature of the Company's operations. Earlier this week, Glass Earth re-filed its restated unaudited interim financial statements and associated MD&A's for each of the three, six and nine month periods of 2010 in accordance with IFRS.
During 2010, the Company announced the completion of two fundraising exercises which raised $6.2 million (before issuance costs). As at 31 December 2010, the Company held C$3.9m in cash with a further $0.5 million received from completion of fundraising in early January 2011. Together with increasing placer mining income, this places Glass Earth in a strong position for drilling activities in 2011.
The Company consolidated its placer activities by acquiring 50% of its joint venture party's mining company (and related placer mining equipment).
The Company recorded a net loss for 2010 totaling $1.467 million (2009 - $2.675 million). Revenue from placer mining activities made its first contribution with exploration and development costs associated with the establishment of these operations amortized completely against revenue as a conservative approach (cash generation totaled $357,000). Placer mining expansion in 2011 should see a significant increase in both gross and net revenue.
Glass Earth is a gold exploration company and therefore classified as being at the 'development stage', as it currently has modest mining income. With all general and administration expenses being expensed, Glass Earth currently records losses each year arising from the expensing of these cash operating costs as well as other non-cash expense items.
| The net loss for the year can include significant non-cash items:- |
| |
| |
12 months ended
December 31 2010 |
12 months ended
December 31 2009 |
| Revenue |
584,000 |
39,000 |
| Cost of revenue |
(381,000) |
(2,000) |
| Gross profit |
203,000 |
37,000 |
| |
|
|
| Cash operating costs |
|
|
| Operating loss |
933,000 |
1,030,000 |
| Foreign exchange (gain) |
(27,000) |
(230,000) |
| |
906,000 |
800,000 |
| Non- Cash expenses |
|
|
| Write down Mineral Properties |
574,000 |
2,364,000 |
| Stock based compensation |
178,000 |
- |
| Income tax expense/(benefit) - deferred |
12,000 |
(489,000) |
| |
764,000 |
1,875,000 |
| Net loss for the year |
1,467,000 |
2,675,000 |
Operational Activities
Field operations concentrated on the testing of GEG's two most advanced prospects WKP West (65% Newmont Mining / 35% GEG; Newmont managed) and Muirs Reefs (100% GEG) in the North Island, and drilling of the Serpentine Project in the South Island.
In addition metallurgical testing and test plant design on the Ophir Project (50% GEG/50% Ophir Gold) is nearing completion.
Expansion of alluvial/placer gold mining in the Central Otago region is a strong focus as current mining operations bed down.
About Glass Earth Gold Limited
Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a land position of approximately 10,000 square kilometres in the North and South Islands.
In the North Island, exploration efforts are focused on large epithermal gold systems in the Hauraki/Central Volcanic Region. This Region is host to the 10 million ounce Martha Gold Mine, (Newmont Mining).
Hauraki Region – Glass Earth occupies a significant ground position around the Waihi/Martha Gold Mine; The Newmont-Glass Earth Waihi West JV (Newmont earning 60%) and Hauraki JV (North and Central Areas - 65/35) are currently being explored and managed by Newmont. Exploration at the WKP gold prospect is ongoing following the very encouraging 2010 drilling results on that prospect.
Central Volcanic Region – Glass Earth has defined several significant epithermal gold targets in this region including the Muirs Reef project (Mamaku district).
In the South Island, exploration efforts are focused on the Otago Region for mesothermal "Macraes-style" gold targets and alluvial gold.
Otago Region – Field programmes to support the drilling of highly ranked Serpentine and Game Hen gold targets are underway.
Two alluvial mining operations continue into the 2011 year, coupled with an acceleration of alluvial exploration and resource definition; Glass Earth / Dunstan Mining (placer mining 50/50 partner) anticipates a significant increase in gold output in 2011.
To receive Company news via email, contact jennie@chfir.com and mention "Glass Earth news" in the subject line.
To view the map associated with this release, please visit the following link:
http://media3.marketwire.com/docs/Glass_Earth_Gold0429.pdf
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. 
