Glass Earth Gold Limited
TSX VENTURE : GEL

Glass Earth Gold Limited

August 25, 2010 08:00 ET

Glass Earth Hits Higher Grade Intersection

of 64 m @ 2.0 g/t Au and 2.6 g/t Au Within a 178m Zone Averaging 1.05 g/t Au and 3 g/t Ag on West Zone of WKP Gold-Silver Prospect, Hauraki, New Zealand

WELLINGTON, NEW ZEALAND--(Marketwire - Aug. 25, 2010) - Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth") today announced significant results from the third drill hole in the diamond drilling campaign at its WKP gold–silver prospect, a joint venture with the operator, Newmont Mining Corporation.

WKP GOLD-SILVER PROSPECT – Newmont 65%, GEL 35%

Newmont has completed the initial three diamond drill holes (WKP 24 and 25 - reported July 12, 2010 and WKP 26 reported herein) on the highly prospective WKP gold-silver prospect. Surface mapping and additional geophysical data (CSAMT resistivity) is planned to assist in the targeting for additional step-out drilling.

WKP 26 intercepted a faulted 2.5 m true width quartz vein at 126 m within a larger 20 m fault zone and a zone of narrow (<500 mm) quartz veining continuing down hole to an andesite dike at 293 m. The stockwork zone developed between the large quartz vein and the andesite dike averaged:

  178 m at 1.05 g/t Au and 3.0 g/t Ag;
  including a higher grade zone of 64 m @ 2.0 g/t Au and 2.6 g/t Au.

"These drill results confirm that WKP West represents a significant new prospect with individual higher grade intercepts and broad mineralized widths that portend a major discovery. Glass Earth and Newmont are very encouraged by these results and are confident that this exploration phase will provide substantial insight into the characteristics of the new zone, 'WKP West' and the overall WKP prospect," asserted Simon Henderson, President and CEO. 

As reported on March 26, 2010, the WKP prospect is a 2 km mineralized alteration zone, just 10 km from Newmont's Martha gold mine at Waihi and 5 km northeast of the Golden Cross deposit (634,000 oz gold production in the 1990's). The WKP epithermal system has magnetic/alteration characteristics similar to the Martha mine and has open-along-strike potential for several kilometres southward. Exploration in the late 1980's and early 1990's identified a very extensive altered and gold mineralized system identified as the 'WKP Stockwork Zone' with multiple intersections, including several ore grade intersections.

The current drilling targeting the new WKP West zone, together with Newmont's previous exploration, outlines a new area approximately 180 m wide with a strike continuity of over 600 m.

The WKP 26 intersection of 178 m at 1.05 g/t Au and 3.0 g/t Ag (including a higher grade zone of 64 m @ 2.0 g/t Au and 2.6 g/t Au) provides further confidence that the WKP West zone represents a significant broad terrain of gold mineralization. Other WKP 26 intercepts, similar to earlier holes punctuated by individual zones of higher grade, include:

  • 1.0 m @ 19.1 g/t Au, 71 g/t Ag from 141 m,
  • 0.8 m @ 24.5 g/t Au, >100 g/t Ag from 167.2 m, 
  • 0.4 m @ 12.3 g/t Au, 24 g/t Ag from 199.9 m, and
  • 1.0 m @ 17.5 g/t Au, 24 g/t Ag from 204 m.

The remainder of the WKP 26 hole contains many narrow (<150 mm) quartz veins and is strongly silicified with locally strong pyrite alteration. This zone contains widespread 0.1-0.5 g/t Au mineralization. The entire zone from just above the quartz vein at 115 m to the end of the hole at 552.1 m averaged 436.1 m @ 0.50 g/t Au, 1.8 g/t Ag.

As previously reported on July 12, 2010, WKP 24 and 25 intersected broad alteration and intense silicification over wide intervals. WKP 24 intersected 156 m @ 1.6 g/t Au, including 1.6 m of 30.2 g/t Au and 13.8 m of 6.6 g/t Au. WKP 25 intersected 15 m @ 9.3 g/t Au, including 1.8 m of 61.4 g/t Au. 

The WKP West zone represents a compelling target in its initial stage of exploration, with the WKP 26 step-out confirming the significant width of gold mineralization consistently greater than 150 m. The new mineralized trend also includes legacy drill-hole WKP 8, 200 m southeast on the trend of mineralization, including a gold intersection of 17.1 m @ 3.8 g/t gold, finishing in 4.8 m @ 11.6 g/t gold.

Qualified Persons

Glass Earth's exploration programmes are carried out under the supervision of Glass Earth's President and CEO, Simon Henderson, M.Sc, M.AUSIMM, F.SEG. Mr. Henderson meets the qualified person requirements, as defined by National Instrument 43-101, with more than 30 years of experience in the gold mining and exploration industry.

About Glass Earth Gold Limited

Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a land position of over 12,000 km2 in the North and South Islands. The Company maintains its objective to discover new large gold deposits in New Zealand, and it is currently mining placer gold under its Otago permits to provide funding for its hard rock gold exploration. With its main office in Wellington, New Zealand, Glass Earth Gold Limited is listed on the TSX Venture Exchange (TSX VENTURE:GEL) and the New Zealand Alternative Stock Exchange (NZAX:GEL).

To receive Company news via email, contact jennie@chfir.com and mention "Glass Earth news" in the subject line.

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