Glass Earth Gold Announces Financial Statements and Management's Discussion & Analysis for the Third Quarter Ended September 30, 2012

Marketwired

WELLINGTON, NEW ZEALAND--(Marketwire - Nov 30, 2012) - Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth" or the "Company") announced today that it has filed its September 30, 2012 third quarter Financial Statements and associated Management''s Discussion and Analysis ("MD&A") report pertaining to that period with regulatory authorities.

Revenues from placer mining operations increased significantly for the quarter to $1,079,000 (June quarter: $349,000). Gold production in September and October was considerably higher than for the winter period with the December quarter expected to increase further.

The Company had a net loss for the three months ending September 30, 2012 of $456,000 vs $670,000 for the similar period in 2011. 

  Three months ended   Nine months ended   Notes
  September 30,   September 30,    
  2012
$''s
  2011
$''s
  2012
$''s
  2011
$''s
   
Revenue 1,079,000   180,000   1,595,000   607,000    
Cost of revenue (1,360,000 ) (114,000 ) (2,408,000 ) (352,000 )  
Gross (Loss)/Profit (281,000 ) 66,000   (813,000 ) 255,000   1
                   
Administrative expenses
(122,000
)
 (334,000
)
(821,000
)
 (769,000
)
2
Salaries (net of exploration costs)
(65,000
)
 (69,000
)
(190,000
)
 (183,000
)  
Finance income 12,000   (6,000 ) 18,000   31,000    
                   
Non-cash items                  
Stock based compensation
-
 
 -
 
(556,000
)
 -
   
Write down of mineral properties
-
 
 (327,000
)
(6,590,000
)
 (327,000
)  
                   
Loss before & after Income Taxes
(456,000
)
 (670,000
)
(8,952,000
)
 (993,000
)  
                   
                   
 Notes:   
 1. Revenues from mining operations increased significantly for the quarter to $1,079,000 (June quarter: $349,000) but was less than budgeted due to the extended commissioning of the GRU#1 plant and lower ''wash'' grades for both sites. Mining and processing costs were higher during this settling down process which coincided with 2 of the 3 months of winter in the South Island. Gold production in September and October was considerably higher than the winter period and the December quarter is expected to increase further.
   
  All commissioning costs have been written off as incurred. The increased production in September - November has resulted in a turnaround to monthly profits. Attention will now focus on costs reduction, which combined with a move to higher grade areas for both sites, should see a marked improvement in cash generation and profitability.   
   
 2. The lower administrative expenses for the quarter reflect the significant decrease in investor relations costs.

The Company''s cash position as at September 30, 2012 was $522,000 compared to $3,614,000 for the same date in 2011. The Company completed a private placement financing for gross proceeds of $360,000 in October and announced it is undertaking a non-brokered private placement financing for gross proceeds of up to $3,000,000.

About Glass Earth Gold Limited

Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a large land position in the North and South Islands (refer attached map).

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 Newmont''s currently active Waihi gold operations; 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 in collaboration with Glass Earth Gold. Glass Earth Gold also intends to progress activities at the newly announced Neavesville prospect.

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 for mesothermal "Macraes-style" gold targets and placer/alluvial gold.

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.

Contact:
Glass Earth Gold Limited
Simon Henderson
President and Chief Executive Officer
+64 4 903 4980
info@glassearthgold.com
www.glassearthgold.com
CHF Investor Relations
Jeanny So
Director of Operations
+1 416 868 1079 x 225
jeanny@chfir.com

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