WELLINGTON, NEW ZEALAND--(Marketwire - Oct. 31, 2012) - Glass Earth Gold Limited ("Glass Earth Gold" or "the Company"); (GEL.V)(GEL.NZ) is pleased to announce its 5,500 metre diamond drill program at the WKP gold-silver prospect, Hauraki, New Zealand (Glass Earth Gold 35%; Newmont Mining 65%) continues to demonstrate that it is a large permissive gold system with potential to host significant epithermal gold deposit(s).
- WKP35 Intersection of 7.9m @ 5.1 g/t Au and 12.1g/t Ag
Including 3.4m @ 8.3 g/t Au and 16.6g/t Ag
- Major new structure hosts Martha-Favona-Golden Cross style epithermal gold
New Zone - East Graben (EG) gold bearing quartz vein
As previously reported on 24 September 2012, drill core from hole WKP 35 on visual inspection exhibited quartz veins with potential gold mineralisation over a core length of 8 metres. Assay results have now confirmed the intersection is 7.9m grading 5.1 g/t Au and 12.1g/t Ag including 3.4m grading 8.3 g/t Au and 16.6 g/t Ag.
A full compilation of assay results for WKP 34 and 35 is awaited. Drilling continues with WKP 36 (targeting extensions to the Eastern and Central zone southward), followed by WKP 37 testing the Eastern Graben structure 200m to the southeast of WKP 35.
What is most significant is the style of veins and the host lithology's, being episodic high level crustiform banded veins, hydrothermal and tectonic brecciation corresponding with multiple phases of mineralisation, hosted on the juxtaposition of rhyolite and andesite lithology's (see Figure 1: http://glassearthgold.com/i/newsreleases/2012/Images/GEGLPR_31Oct2012_WKPMap1.jpg). This is new for this project and important because the styles of mineralisation here mirror those associated with major gold mines in the vicinity, namely Martha, Favona, and Golden Cross.(i)
The veins lie on a major north-north-east trending structure marking the intersection of rhyolite (west) and more intermediate andesite pyroclastics (to the east). This is a major structure, identified on magnetic and resistivity (geophysical) data, and may represent the primary focus of significant coherent mineralisation in the WKP area. The structure can be mapped for several kilometres and is open both up and down dip, and along strike (See Figure 2: http://glassearthgold.com/i/newsreleases/2012/Images/GEGLPR_31Oct2012_WKPMap2.jpg).
Simon Henderson, President and CEO of Glass Earth Gold, commented "Every drill hole completed by the JV has intersected significant mineralisation and demonstrated potential for both narrow (3-9m) high grade gold veins, and or broad low grade mineralisation (in excess of 100m of +1 g/t gold). The discovery of this new Eastern Graben structure is a major step forward for the WKP project because the style of mineralization intersected in WKP-35 shows strong similarities to other productive gold-silver veins in the district. We are very encouraged by the result from this hole. Step-out drill testing is already underway".
(i)Martha goldmine is the Newmont operated mine 10km south of WKP, and is widely regarded as the type-system for epithermal gold deposits. The mine, currently in production has approximately 10Moz gold equivalent in historic production and current resources.
(i)Favona goldmine is a satellite deposit associated with the Martha system.
(i)Golden Cross goldmine lies 4-5km southwest of WKP and produced 634,000 ounces gold (1991-1997).
The WKP prospect is a joint venture between Glass Earth Gold (35%) and Newmont Mining (65%). The prospect is a large, three by one point five km mineralised alteration zone, just 10km from Newmont's producing Martha gold mine at Waihi (approximately 10Moz gold equivalent) and 4-5km northeast of the Golden Cross deposit (634,000 ounces gold). The program is budgeted to cost approximately $C3.3M (Glass Earth Gold's share approx. $C1.2M).
The WKP epithermal system has magnetic/alteration characteristics similar to the Martha epithermal system and has open-along-strike potential of at least 1-2km. The WKP Central zone currently outlines an area approximately 180m wide with a strike continuity of over 800m.
The Glass Earth Gold/Newmont Joint Venture began drilling exploration at the WKP prospect with DDH WKP 24 in March 2010. Highlights from results achieved to date are summarised in the press release dated 24 September 2012.
About Glass Earth Gold
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. The Company held a net cash position of C$1.0 million at the end of Q2 2012.
In the North Island, exploration efforts are focused on large epithermal gold systems in the Hauraki Region, akin to the 10Moz gold equivalent 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.
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, home to OceanaGold's 7Moz Macraes Goldfield, for identification of mesothermal "Macraes-style" gold targets and revenue generation through placer (alluvial) gold production.
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, has reviewed and approved the technical information given in this press release.
For more information on Glass Earth Gold, please visit www.glassearthgold.com.
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Glass Earth Gold Limited
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