Glass Earth Gold Limited

Glass Earth Gold Limited

November 07, 2013 12:01 ET

Glass Earth Gold Announces Further Drilling Results for the Wharekirauponga (WKP) Gold Project, Hauraki, New Zealand

WELLINGTON, NEW ZEALAND--(Marketwired - Nov. 7, 2013) - Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth Gold or GEG") is pleased to announce the drilling results for holes 38 and 39 in the (Eastern zone) of the WKP Wharekirauponga (WKP) Gold Project, Hauraki, New Zealand. The WKP Project is held by the Hauraki Joint Venture ("HJV") - Newmont Waihi Gold (65%) and GEG (35%) and is located in the southern Hauraki Goldfield, 10km north of the Martha Gold Mine (Newmont Waihi Gold 100%).

Highlights of the drilling results include high grade zones of 1.5m at 20.9 g/t Au, 0.5 metres at 26.4 g/t Au, and 0.8 metres at 9.77 g/t Au. As well broad intersections of lower grade mineralization include 517 metres at 0.46 g/t Au plus 454.5 metres of 0.46 g/t Au.

From To Interval(m) Au (g/t) Ag (g/t)
WKP 39 158.5 613 454.5 0.46 1.7
incl. 273.2 274 0.8 9.77 23.6
582.2 583 0.8 5.92 21.1
609.6 610.3 0.7 6.46 36.6
WKP 38 169 686 517.0 0.46 1.1
incl. 196.7 197.2 0.5 26.4 21.2
233.5 234.5 1.0 5.56 13.2
300 301.5 1.5 20.9 6.9
and 582 651.5 69.5 0.43 1.8

The President and Chief Executive Officer of Glass Earth Gold, Simon Henderson, commented on the results: "With the completion of drill holes 38 and 39, the Company has completed 9,035m of drilling on the WKP property. The latest drill holes have targeted the Eastern graben structure which hosts mineralization similar to the major gold mines in the vicinity, with continuing intersections of broad widths of modest grade, and narrow high grade individual intersections. The area continues to tantalise with its significant volumes of mineralisation, however recent resource work points to the Central/Western zones as the most promising higher grade structures to concentrate further work."

Future technical work will be aimed at improving the size and grade of the broader high grade T-Stream gold-silver vein system (Central and Western zones). The exploration team is encouraged by the high grade potential of the T-Stream system, resources by zone offering higher grade estimates; Central zone 6.6 g/t Au, and Western zone 9.7 g/t Au respectively, with significant expansion potential.

The objective is to expand the limits of these known higher grade veins, test the selected targets for the presence of additional mineralization, collect preliminary environmental background data, and conduct preliminary metallurgical testing to assist the preparation of future Mineral Resource estimates.

The WKP project, which has emerged as the company's flagship project, hosts a NI 43-101 mineral resource estimate of the inferred category of 1.3 million tonnes at an average grade of 6.1 g/t Au and 9.3 g/t Ag for a total of 260,000 ounces of gold and 390,000 ounces of silver, at a cut-off grade of 3.0 g/t of gold (news release 1 August 2013).

Cost-containment measures

In the light of the unfavorable environment that severely affects junior exploration companies, Glass Earth Gold has carried out a major cost-cutting exercise which aims at building resilience by containing its operational and administrative costs to a minimum. A major overhaul of the operations has led to the sale of non-strategic assets and a refocus on exploration led by WKP as lead project. The team has been downsized to two full-time employees and four consultants and part-timers, which has enabled the Company to maintain access to core skills and effectively pursue the projects.

About Glass Earth Gold

Glass Earth Gold is an exploration company focused on unveiling the high-grade potential of the Wharekirauponga (WKP) and Neavesville projects in Hauraki, New Zealand. The properties are situated in areas of low suphidation gold-silver epithermal systems, similar to the system that hosts the Newmont Mining-owned Martha Hill mine.

The WKP project is a joint-venture between Glass Earth Gold (35%) and Newmont Mining (65%). It holds a NI 43-101 inferred resource of 1.3 million tonnes at an average grade of 6.1 g/t Au and 9.3 g/t Ag for a total of 260,000 ounces of gold and 390,000 ounces of silver.

Qualified Person

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of 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.

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