Glass Earth Limited
TSX VENTURE : GEL

Glass Earth Limited

December 19, 2006 11:12 ET

Glass Earth Announces a Number of Important Developments

- Otago Prospecting Permit Granted - Letter of Intent with Aurora Minerals Limited - Major Airborne Geophysics Campaign to Commence Early 2007

TORONTO, ONTARIO--(CCNMatthews - Dec. 19, 2006) - Glass Earth Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth") wishes to announce a number of important developments.

Otago Region Prospecting Permit

Glass Earth has been granted by Crown Minerals New Zealand the largest ever Prospecting Permit, (PP 39 322), over 17,980 square kilometres in the Otago Region in the South Island of New Zealand.(the "Otago Prospecting Permit") - See attached map.

Aurora Minerals South Island Joint Venture

Glass Earth has entered into a Letter of Intent with Aurora Minerals Limited (ASX and NZX code: ARM) to carry out a Joint Venture on Aurora Mineral's 100% owned Macraes West Project (1,173 square kilometres), which is just west of the 2 million ounce Macraes Gold Mine in the Otago District of the South Island, New Zealand. The Aurora Mineral's licence area covers the possible westward extension of the Hyde - Macraes shear which hosts the Macraes mine mineralisation.

Glass Earth has significant permit holdings in the Otago Region contiguous to Macraes West and the Aurora Minerals permit would extend the area covered by the Glass Earth permits

The proposed terms of the joint venture are as follows:

Glass Earth would be required to:

- Fund an airborne geophysical survey over Macraes West;

- Process the raw data;

- Interpret the data and identify targets; and

- Plan and recommend a follow-up exploration campaign.

Glass Earth may earn a 70% equity in the project by spending NZ$750,000 and will be the manager of the joint venture. After Glass Earth has spent NZ$750,000, Aurora may then elect to fund its 30% interest of joint venture expenditure, or dilute.

If Aurora Minerals dilutes to a 20% interest in the joint venture, then Aurora Minerals will have a 20% carried interest until commencement of a bankable feasibility study. Prior to a decision being made on commencing a bankable feasibility study, Aurora may elect to claw back to a 30% interest in the joint venture by reimbursing GENZL an amount equal to twice what it would have spent as if it had been contributing pro-rata for its 30%.

Subsequent expenditures would be shared in accordance with the party's respective percentage interests in the joint venture, unless either party wished to not incur additional costs, in which case dilution of their existing equity would take place under an agreed formula.

The detailed joint venture agreement will be conditional on the consent of the Minister, pursuant to section 41 of the (New Zealand) Crown Minerals Act, Crown Minerals work programme approvals and negotiation of final terms.

Otago Region Airborne Geophysical Survey

Glass Earth is planning to undertake an extensive airborne geophysics campaign over an area of approximately 22,000 square kilometres in the Otago region, South Island, New Zealand. The airborne geophysical survey will be conducted by Fugro BTW Limited commencing in January 2007 and will cover areas both on existing Glass Earth permits (a further 2,672 square kilometres) and on other third party permits (currently a further 1,173 square kilometres) and the Otago Prospecting Permit in order to obtain a fuller regional geological understanding of the area. The survey will involve the helicopter-borne "RESOLVE™" EM system combined with a magnetic gradiometer. This system targets the top 100 metres of the earth's crust (the zone of interest for Glass Earth).

The South Island Otago geophysical survey is part of a second major Intervention Project carried out by Glass Earth in New Zealand, the first being the Coromandel/Central Volcanic Intervention Project in the North Island undertaken in 2005.

EXPLORATION REGIONS (See figure 1 - GEL exploration regions - overview map)

Glass Earth has the most extensive portfolio of gold and silver prospecting/exploration permits (and applications) in New Zealand, totalling over 31,000 square kilometres. Within this land position, Glass Earth has defined the following exploration areas:

- Hauraki Region - With 15 advanced gold prospects, this region is host to the world-class epithermal gold deposit at the Martha gold mine;

- Mamaku-Muirs Region - With 17 recently-defined gold targets, this region includes the Muirs Reef prospect, which historically has produced more than 43,000 ounces of gold;

- Central Volcanic Region - Glass Earth has defined 74 epithermal gold targets in this region, including 6 advanced drill-ready prospects; and

- Otago Region - As Glass Earth's main gold region on New Zealand's South Island, a data collection/geophysical intervention over the recently awarded Otago Prospecting Permit and other areas and a targeting project will commence in early 2007. This region contains three near drill-ready mesothermal gold prospects.

Qualified Persons

Glass Earth's exploration programmes are carried out under the supervision of Glass Earth's VP Exploration and Chief Operating Officer, Mr. Simon Henderson, M.Sc, M.AUSIMM. 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 Limited

Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a land position of over 31,000 square kilometres in the North and South Islands. On the North Island, exploration efforts are focussed on the Hauraki / Central Volcanic Region. The Hauraki / Central Volcanic Region is host to the 10 million ounce gold Waihi / Martha Hill Mine, owned by Newmont Mining, which is considered the "type" epithermal gold deposit and the kind of large epithermal gold deposit targeted by Glass Earth.

- Glass Earth has a Joint Venture Agreement with Newmont Mining for Newmont to fund the exploration of one of these targets in the Waihi West area adjacent to Newmont's Waihi / Martha Hill Mine.

- Glass Earth has defined and delineated a total of 21 priority individual target areas that could potentially host large deposits of Martha Hill Mine "look-a-like" epithermal gold mineralisation. These target areas have been covered by Exploration Permits. Drill ready targets have been generated in these areas.

- Glass Earth's exploration plans include activity in the Hauraki region exploration and prospecting permits that were acquired in March 2006 as part of the HPD New Zealand transaction.

On the South Island, exploration efforts are focussed on the Otago Region for mesothermal "Macraes-style" gold targets.

Glass Earth Limited, headquartered in Toronto with New Zealand operations offices, is listed on the TSX Venture Exchange (TSX VENTURE:GEL) and the New Zealand Alternative stock exchange (NZAX:GEL).

Please note: To view: "Figure 1 GEL exploration regions - overview map", please click on the following link: http://www.ccnmatthews.com/docs/gel1219.pdf

Neither the TSX Venture Exchange nor New Zealand Exchange Limited has reviewed this release and neither accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Glass Earth Limited
    Simon Henderson
    Chief Operating Officer and Vice President, Exploration
    +64 4 903 4980
    Website: www.glassearthlimited.com