WELLINGTON, NEW ZEALAND--(Marketwire - Dec. 20, 2012) - As a result of a review by the British Columbia Securities Commission, Glass Earth Gold Limited (News - Market indicators)(NZAX:GEL) ("Glass Earth" or "the Company") is issuing the following news release to clarify its disclosure:
Glass Earth announces that to enable compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, all non-compliant disclosures of historical resource estimates, current resource estimates, and estimates of contained ounces in potential exploration targets, have been amended or removed from the Company's website, corporate presentation and fact sheet pending amendment for compliance.
As part of this process Glass Earth is revising its disclosure documentation and related processes to ensure compliance now and in the future with NI 43-101 guidelines.
Glass Earth advises that these changes affect disclosures in relation to the Muir's-Massey Reef, WKP and Placer projects. Going forward, the Company intends to follow NI 43-101 rules requiring classifications and fixed quantities and grades for current resource estimates, cautionary language and other details for historical resource estimates, quantity-grade ranges and cautionary language for exploration targets, and to file NI 43-101 reports supporting its resource disclosure within the prescribed periods.
Specific clarification related to earlier non-compliant disclosure in the Company's Muir's property news releases from January 27, 2012 to June 28, 2012, the Company previous website, and investor materials are as follows.
Prior disclosure of the Muir's historical estimate was not compliant with NI 43-101 because it omitted mandatory cautionary language and other information required by NI 43-101 for all written disclosure of historical resource estimates.
GEL clarifies and restates its Muir's historical resource estimate in accordance with NI 43-101 section 2.4 as follows:
The Muir's Property has an historical estimate of 390,000 oz gold, quoted at a grade of 1.5 g/t gold, using a cut-off of 0.5 g/t, no classes are identified or known.
- Source and date: HPD (New Zealand Limited) in-house report, date unknown.
- The historical estimate is considered order of magnitude, and is relevant as an indication of the approximate size of the gold deposit being targeted for further drill exploration.
- This estimate is based on 45 drill holes completed in the 1969 - 1995 period. The drilling consisted of 8 Diamond drill-holes, and rotary and reverse circulation drilling. Logging, sampling and assaying was carried out through both New Zealand and Australian based analytical laboratories. Estimates were carried out using polygonal methods based on drill fences at 100m intervals, and down-hole spacing of approximately 40m.
- No categories are defined in the historical estimate. The poor reliability of the estimate precludes any comparison to inferred or other resource classes in current use.
- The only more recent estimate is a somewhat smaller "in-house" estimate done by the company, as discussed in the following main item.
- Further resistivity (ground geophysics) and Diamond drilling is necessary to upgrade the historical estimate to a current estimate.
- A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and GEL is not treating the historical estimate as current mineral resources.
GEL retracts the Muir's recent "in-house" estimate of 5.6 million tonnes grading 1.25 g/t gold disclosed by a Corporate Presentation on the Company Website of November 2012 (the Corporate Presentation) pending preparation of a technical report, as the estimate is not compliant with s2.2 and s3.4 of Ni 43-101. The Company will promptly announce any material resource estimates that result from preparation of its Muir's technical report.
GEL retracts the prior disclosure of a 2008 "global" resource at WKP (previously disclosed in the Corporate Presentation) as these estimates omit classifications and information required by NI 43-101 about the estimation procedure. The Company will promptly announce any material resource estimates that result from preparation of its WKP technical report.
Specific clarification related to earlier non-compliant disclosure for the Company's Placer projects in the Corporate Presentation and other investor materials:
- Prior disclosure of the Placer estimates was not compliant with NI 43-101 because ounce-only quantities of indicated and inferred gold resources omitted required grade information, combined inferred and indicated class contrary to NI 43-101, and did not disclose the assumptions, parameters and methods used to make the estimates.
- Accordingly the Company withdraws those estimates pending release of a technical report. The Company will promptly announce any material resource estimates that result from preparation of its Placer Project technical report.
Technical Reports are being prepared. The company intends to finalize technical reports in relation to Muir's, WKP and Placer on or before 21 January 2013.
GEL acknowledges the following disclosures of potential exploration targets did not meet the requirements of NI 43-101 to use ranges of quantity and grade, explain the basis for the disclosures and to include mandatory cautionary language. The company therefore retracts the disclosures in the Corporate Presentation and other investor materials of large ounce-only quantity ranges or ounce quantities with associated fixed grade, referred to as "potential," at WKP, Ophir, and Muir's.
NI 43-101 disclosure requirements for resources and reserves also apply to adjoining or nearby properties. To clarify, historical production and/or resource estimates and detailed references for production and mineral estimates for the nearby Martha and Golden Cross mines are presented below.
Martha Mine 10 Moz Au and Ag Equivalent (Newmont Waihi)
|Production: 1878 to 1952: 4.9 Moz Au and 29.9 Moz Ag (1) |
|Production: 1988 to 2011: 2.7 Moz Au (2) and 13.1 Moz Ag (3) |
|Production: 2011 Onwards: |
||Probable reserves 0.36 Moz Au (3200Kt @ 0.112 oz/t Au) |
||Indicated Non-reserve mineralisation 0.51 Moz Au (2100Kt @ 0.243 oz/t Au) |
||Inferred Non-reserve mineralisation 0.18 Moz Au (900Kt @ 0.195 oz/t Au) (4)|
|(1) Braithwaite, R L, Torckler, L K and Jones, P K, 2005. The Martha Hill Epithermal Au-Ag Deposit, Waihi - Geology and Mining History, in Geology and Exploration of New Zealand Mineral Deposits, Monograph 25 (ed: T Christie), pp 171-178 (The Australian Institute of Mining and Metallurgy: Victoria).|
|(2) Hobbins, J M, Torckler, L K, Rhys, D A, Ross, K V and Mauk, J L, 2012. The Correnso epithermal gold-silver deposit, a new blind discovery in Waihi, Hauraki Goldfield, New Zealand. Australian Institute of Mining and Metallurgy: New Zealand Conference Proceedings 2012.|
|(3) Mauk, J L, 2011. Variable ore mineralogy in the world-class epithermal Waihi vein system, New Zealand. Australian Institute of Mining and Metallurgy: New Zealand Conference Proceedings 2011.|
|(4) Newmont, 2011. 2011 Reserves and Non-Reserve Mineralization As of December 31, 2011 (http://www.newmont.com/).|
|Golden Cross (Coeur d'Alene Mines)|
|Production 662 000 oz Au from 1991 to 1998 (1)|
|(1) Mauk, J.L. and Purvis, A, 2006, The Golden Cross epithermal Au-Ag deposit, Hauraki Goldfield, New Zealand, in Christie, A.B. and Brathwaite, R.L., eds., AusIMM Monograph 25: Geology and Exploration of New Zealand Mineral Deposits, p. 151-156. |
GEL CEO 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. He has reviewed and approved the information given in this press release.
About the Company
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.
In the North Island, exploration efforts are focused on large epithermal gold systems in the Hauraki Region, akin to the operating 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. The recent announcement that Glass Earth Gold has acquired option rights to the Neavesville gold/silver prospect (just north of WKP) will mean an increased exploration focus in the Hauraki region. Glass Earth Gold has also defined several significant epithermal gold targets to independently explore in this region, including the Muir's Reef Gold project.
In the South Island, exploration efforts are focused on the Otago Region, home to OceanaGold's Macraes Goldfield, for identification of mesothermal "Macraes-style" gold targets and revenue generation through placer (alluvial) gold production.
For more information on Glass Earth Gold, please visit www.glassearthgold.com.
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