Glass Earth Gold Limited reports interim financial statements and Management Discussion & Analysis for the six months ended 30 June, 2008
TORONTO, Aug. 6 /CNW/ - Glass Earth Gold Limited (TSX Venture: GEL; NZAX:
GEL) ("Glass Earth") announced the release of its interim financial statements
for the six month period ending June 30, 2008, and Management's Discussion and
Analysis ("MD&A") report pertaining to that period.
During the first half of 2008, Glass Earth has completed drill permitting
for various gold exploration prospects, including advanced gold prospects in
the Hauraki-Waihi area, an advanced prospect at Mamaku, between Rotorua and
Tauranga, and greenfields gold prospects in the Otago mesothermal gold fields,
within the 17,980 square kilometre prospecting permit area - which management
believes is prospective for Macraes style gold mineralization. Existing joint
ventures and other arrangements have increased the exploration area in the
Otago region to over 23,000 square kilometers.
Newmont completed 4 diamond drill holes on Owharoa by May, with no
significant results encountered. The drill rig was shifted to near the
historic Komata deposit, aimed at the untested potential in the converging
southerly strike extents of the vein system.
Land access was obtained in late June 2008 that has allowed a 5-6 hole
drilling campaign to commence, testing ground in and around the historic Muirs
deposit. Further drilling to the north (Otawa) and the south (Gibraltar) will
be dependent on results.
Assay results from the large summer field programmes came through in this
quarter allowing the exploration team to identify drill targets at Serpentine,
Sparrowhawke, Game Hen and Gold & Pine. The first Otago Region drill hole was
drilled at Sparrowhawke in June. Drilling will continue through the southern
hemisphere winter on the lower elevation targets. Field mapping and stream
sediment sampling continued over Fruid Burn and Sheep Wash, with infill soil
sampling at Game Hen. Substantial effort has been put into analysis and
interpretation of the data sets obtained (legacy, remote geophysical and field
At June 30, 2008, the Company had net working capital of $3,670,000
(2007: $3,435,000), including cash and equivalents of $3,808,000 (2007:
$3,903,000). 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.
Exploration expenditures incurred are initially capitalised and include
mineral exploration costs (which form the bulk of the Company's expenditures),
which were $851,000 for the quarter. The expenditure for the same period in
2007 ($1,403,000) was significantly higher due to the commencement of the
Otago Region airborne geophysical survey in January 2007. On-the-ground
follow-up exploration in Otago formed the bulk of exploration expenditures.
Newmont is funding exploration expenditures in the Hauraki Region under the
farm-out arrangements advised previously. Other exploration costs were
incurred principally in the Mamaku Region and the Central Volcanic Region (2
E-Scans and regional prospecting).
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 27,000 square kilometres in the
North and South Islands.
With its main operational office in Wellington, New Zealand and field
offices in Rotorua (North Island) and Dunedin (Otago, South Island), Glass
Earth Gold Limited is listed on the TSX Venture Exchange (TSX.V: GEL) and the
New Zealand Alternative Stock Exchange (NZAX: GEL).
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.
For further information: Simon Henderson, President and Chief Executive
Officer, at +64 4 903 4980 or firstname.lastname@example.org; Lindsay
Carpenter, Account Manager, CHF Investor Relations, at (416) 868 1079 x239 or
email@example.com; Visit the Company's website at www.glassearthgold.com;
To receive Company news via email, contact firstname.lastname@example.org and mention
"Glass Earth news" in the subject line