Glass Earth Gold Limited
TSX VENTURE : GEL

Glass Earth Gold Limited

May 31, 2012 06:00 ET

Glass Earth Gold Confirms Continuity of Mineralization at Its Muirs Reef Gold Project, New Zealand

WELLINGTON, NEW ZEALAND--(Marketwire - May 31, 2012) - Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth Gold") is pleased to announce results from ongoing drilling at its 100% owned Muirs Reef Gold Prospect in New Zealand.

Highlights of Massey Reef Drilling:

  • Successfully intersecting gold bearing quartz reef along strike and down plunge of previous trenching and old mine workings, and extending the reef northwards 40m and remaining open to the north.

  • MSDDH 11 reports 12m at 1.1 g/t Au and 0.5 g/t Ag from 7m down hole.

  • MSDDH 10 reports mineralisation extending from surface with an intersection of 78m at 0.52 gm/t Au and 0.5 g/t Ag from 6m.

Simon Henderson, the Company's CEO and President, commented that "the continuity of quartz veining is encouraging, as is the confirmation of broad widths of lower grade material from surface; the on-going programme will test the southern extensions of the quartz vein system mapped out over 600m from surface out-cropping quartz veins"

The results (shown in Table 1) are a continuation of drilling planned to identify gold resources in an area known as Massey Reef, defining extensions to the known reef system both along strike north and south, and at depth. The Muirs Reef project contains a historical non-compliant resource of 390,000 oz at 1.5 g/t Au and cut-off grade of 0.5 g/t Au). The current programme will continue through 2012, and if successful is expected to produce data of sufficient density to model a gold resource to NI 43-101 standard.

Drilling on the seventh of proposed 17 drill-holes is well advanced, at the time of writing the MSDDH 13 had intersected extensive quartz veining which was causing drill problems.

Table 1: Current drilling results at Massey Reef, Muirs Project
HOLE ID FROM(m) TO(m) INTERVAL(m) Au(g/t) Ag(g/t)
MSDDH010 6 84 78 0.52 0.5
MSDDH011 7 19 12 1.12 0.5
MSDDH011 30 32 2 1.1 0.7
MSDDH011 56 58 2 3.8 2.6
MSDDH011 85 89 4 1.14 0.5
MSDDH012 8 11 3 2.66 1
MSDDH012 28 37 9 0.88 0.7
MSDDH012 98 116.3 18.3 1.3 2

To view drillhole locations, please go to: http://www.glassearthgold.com/i/maps/Muirs-Picture_NR_May31_2012.JPG.

Table 2 repeats earlier drill results (March 2012) confirming similar widths and grade of mineralisation, with the exception of the high grade intercept in MSDDH 9.

Table 2: Previous drilling results at Massey Reef, Muirs Project (March 2012)
HOLE ID FROM(m) TO(m) INTERVAL(m) Au g/t Ag g/t
MSDDH 08 22 39 17 1.71 1.8
MSDDH 09 12 14 2 2.50 1.2
MSDDH 09 48 50 2 38.4 49.2
MSDDH 09 85 103 18 0.78 0.9

The Massey Reef drilling programme follows completion of trenching last year that included significant surface results (reported in July and November 2011 respectively):

  • MSTR 06 24m of 5.7g/t gold and 1.9g/t silver
  • MSTR 13 10m of 3.1g/t gold and 1.7g/t silver

Muirs Reef Gold Project

The Company's Muirs Reef Gold Prospect lies 65 km southeast of the Martha Mine (Newmont Mining, 10 million ounce gold deposit) at the southern end of the Hauraki Goldfield. Two quartz reefs were mined within this epithermal system until the 1930s, with over 43,000 oz of gold extracted from shallow surface and underground workings.

Massey Reef is part of the historical Muirs Reef gold mining area. Recent significant surface trenching results in outcropping and sub-cropping quartz veins are shown in Table 3. Trenching has demonstrated a 650m strike length of the surface mineralization, ample dimension to potentially host a significant gold resource.

The current drilling programme is designed to identify the depth and strike extent of near surface gold mineralization and identify any further mineralization adjacent to known veins.

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.

About Glass Earth Gold

Glass Earth Gold is one of New Zealand's largest gold exploration companies, with its experienced geological team exploring promising gold prospects across a land position of approximately 10,000 square kilometres, in both the North and South Islands. The Company held a net cash position of C$1.7 M at the end of Q1 2012 to fund exploration progress.

In the North Island, exploration efforts are focused on large epithermal gold systems in the Hauraki Region, host to the 10 million ounce Martha Hill mine, (Newmont Mining).

In the Hauraki Region Glass Earth Gold has identified and developed significant ground positions around Newmont Mining's currently active Martha gold 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, is being actively explored and managed by Newmont in concert 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 Project. Containing a historical resource of 390,000 oz (non NI 43-101-compliant, at 1.5 g/t Au and cut-off grade of 0.5 g/t Au), further drilling is being undertaken to prove up the resource.

In the South Island, exploration efforts are focused on the Otago Region, home to OceanaGold's 7 million ounce Macraes Goldfield, for identification of mesothermal "Macraes-style" gold targets and revenue generation through placer (alluvial) gold production.

For more information on Glass Earth Gold, please visit www.glassearthgold.com.

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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