WELLINGTON, NEW ZEALAND--(Marketwire - June 28, 2012) - Glass Earth Gold Limited (GEL.V)(GEL.NZ) ("Glass Earth Gold") announced today that it has now fully commissioned its second Gold Recovery Unit ("GRU") at the Hecklers Mine in the Manuherikea Valley, Central Otago.
The current initial production from placer operations at Hecklers and Gunclub mines now stands at 42 ounces of gold a week, with improved throughput and operating hours planned to further increase production. Glass Earth Gold is presently commissioning a third operation which should become fully operational in Q3 2012.
"I am very pleased with the new mining team that has been set up since we took control of placer mining activities. The team has shown a strong commitment to meet our production targets," said Simon Henderson, CEO of Glass Earth Gold.
He added, "The benefits of running these placer gold operations are multi-fold. In addition to providing the Company with a cash flow stream that supports G&A and exploration costs; the Company's small-scale gold production supports the advancement of its projects regardless of market conditions, and also facilitates the early development of additional projects if the opportunity arises."
In 2011, Glass Earth's then 50% share of the placer joint venture contributed CAD$752,000 in gross revenue and CAD$274,000 in net revenue based on operating only one Gold Recovery Unit. The increase in throughput from commissioning two additional GRU's and from gaining 100% ownership of placer gold operations, should enable the Company to achieve its previously articulated production goals of 7,500 ounces per year in 2013 at a cost averaging CAD$900 an ounce.
About Glass Earth Gold
Glass Earth Gold is one of New Zealand's largest gold exploration companies, with its experienced geological team exploring promising gold prospects across a land position of approximately 8,800 square kilometres, in both the North and South Islands. The Company holds cash of CAD$1.7 M as at 26 June 2012 to fund exploration progress.
In the North Island, exploration efforts are focused on large epithermal gold systems in the Hauraki Region, host to the 10 million ounce Martha Hill mine, (Newmont Mining).
In the Hauraki Region Glass Earth Gold has identified and developed significant ground positions around Newmont Mining's currently active Martha gold 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, is being actively explored and managed by Newmont in concert with Glass Earth Gold.
Glass Earth Gold has also defined several significant epithermal gold targets to independently explore in this region including the Muirs Reef Project. Containing a historical resource of 390,000 oz (non NI 43-101-compliant, at 1.5 g/t Au and cut-off grade of 0.5 g/t Au), further drilling is being undertaken to prove up the resource.
In the South Island, exploration efforts are focused on the Otago Region, home to Oceana Gold's 7 million ounce Macraes Goldfield, for identification of meso-thermal "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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