WELLINGTON, NEW ZEALAND--(Marketwire - Nov 20, 2012) - Glass Earth Gold Limited (TSX VENTURE:GEL)(GEL.NZ) ("Glass Earth Gold") announced today it doubled its gold production from the placer (alluvial) mining operations in the Manuherikia Valley in Central Otago.
Production from placer operations at Drybread (Hecklers and Morans) is now achieving approximately 70-80 ounces of gold per week, doubling its output since last update (reported August 29, 2012). This higher gold production has been achieved in some lower grade areas and now, both gold recovery units are working their way to higher grade ground where further production increases and efficiencies are anticipated.
This production improvement builds off a modest base that averaged 10 oz/week of gold from a single plant in March this year.
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Simon Henderson, CEO of Glass Earth Gold said, "We are delighted with the steady progress in our placer production and look forward to further efficiencies and improvements as we mine higher grade material during New Zealand''s summer months ahead".
Cash flow from current operations are covering General and Administrative expenses and modestly adding to its exploration budget at the WKP prospect (north of the Martha mine at Waihi, North Island).
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.
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.
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