Glass Earth Gold Limited

TSX VENTURE : GEL


Glass Earth Gold Limited

December 04, 2012 08:00 ET

Glass Earth Gold Intersects 227.5m of 0.53 g/t Gold and 1 g/t Silver Above New Epithermal Gold Zone-East Graben at WKP

WELLINGTON, NEW ZEALAND--(Marketwire - Dec. 4, 2012) - Glass Earth Gold Limited ("Glass Earth Gold" or "the Company") (TSX VENTURE:GEL)(NZAX:GEL) is pleased to announce that its 5,500 metre diamond drill program at the WKP gold-silver prospect, Hauraki, New Zealand (Glass Earth Gold 35%; Newmont Mining 65%) continues to demonstrate that it is a large permissive gold system with potential to host significant epithermal gold deposit(s).

WKP35 Intersection of 227.5 m @ 0.53 g/t Au and 1.0g/t Ag
Including 1.1m @ 20.1 g/t Au and 10.7g/t Ag
This Upper section of broad low grade gold mineralization lies adjacent to the East Graben gold bearing zone which exhibits features of Martha-Favona-Golden Cross style epithermal gold mineralization

WKP 35 Upper Section - Broad low grade gold mineralization

The WKP project continues to demonstrate that it is a very large permissive gold system. In WKP 35, as for holes WKP 24 - 28 and 32A, broad low-grade intercepts are a feature, where the margins of a voluminous rhyolite rock type, have provided for a focus of hydrothermal fluid flow and high grade mineral intercepts. The interior of the competent and homogeneous rhyolite rock has provided for regular fracturing and broad hydrothermal fluid flow, with resulting exceptionally consistent large-tonnage, low-grade, readily extractable gold resources.

This contrasts with the East Graben zone (as previously reported 24 September 2012/31 October 2012) drill core from 580m down-hole on WKP 35 being episodic high level crustiform banded veins, hydrothermal and tectonic brecciation, corresponding with multiple phases of mineralisation, hosted on the juxtaposition of rhyolite and andesite lithology's. The intersection (580m down-hole) was 7.9m grading 5.1 g/t Au and 12.1g/t Ag, including 3.4m grading 8.3 g/t Au and 16.6 g/t Ag (see Figure 1: http://glassearthgold.com/i/newsreleases/2012/Images/GEGLPR_04Dec2012_WKPMap1.jpg).

This was new for this project and important because the styles of mineralisation here mirror those associated with major gold mines in the vicinity, namely Martha, Favona and Golden Cross (refer next page*).

The broad low grade gold mineralisation and East Graben veins in WKP 35 lie on a major north-north-east trending structure marking the intersection of rhyolite (west) and more intermediate andesite pyroclastics (to the east). This is a major structure, identified on magnetic and resistivity (geophysical) data, and may represent the primary focus of significant coherent mineralisation in the WKP area.

The structure can be mapped for several kilometres and is open both up and down dip, and along strike (See Figure 2: http://glassearthgold.com/i/newsreleases/2012/Images/GEGLPR_04Dec2012_WKPMap2.jpg).

All assay results for WKP 35 have been received. Drilling was completed on WKP 36 (targeting extensions to the Eastern and Central zone southward) and these assay results are awaited. Drilling commenced on WKP 37 on 1 November 2012, testing the Eastern Graben structure, 200m to the southeast of WKP 35.

Simon Henderson, President and CEO of Glass Earth Gold, commented "This project continues to surprise with the demonstration of its large scale and coherent gold and silver mineralised widths. Every drill hole completed by the JV has intersected significant mineralisation and demonstrated potential for both narrow (3-9m) high grade gold veins and/or broad low grade mineralisation (in excess of 100m of +1 g/t gold). The intersection of this broad low grade mineralization adjacent to the new Eastern Graben structure identifies yet another zone, or additional extensions of the Eastern zone of the WKP project. Step-out drill testing is already underway."

*Martha goldmine is the Newmont operated mine 10km south of WKP, and is widely regarded as the type-system for epithermal gold deposits. The mine, currently in production has approximately 10Moz gold equivalent in historic production and current resources.

*Favona goldmine is a satellite deposit associated with the Martha system.

*Golden Cross goldmine lies 4-5km southwest of WKP and produced 634,000 ounces gold (1991-1997).

Summary

The WKP prospect is a joint venture between Glass Earth Gold (35%) and Newmont Mining (65%). The prospect is a large, 3km by 1.5km mineralised alteration zone, just 10km from Newmont's producing Martha gold mine at Waihi (approximately 10Moz gold equivalent) and 4-5km northeast of the Golden Cross deposit (634,000 ounces gold). The program is budgeted to cost approximately $C3.3M (Glass Earth Gold's share ~$C1.2M).

The WKP epithermal system has magnetic/alteration characteristics similar to the Martha epithermal system and has open-along-strike potential of at least 1-2km. The WKP Central zone currently outlines an area approximately 180m wide with a strike continuity of over 800m.

The Glass Earth Gold/Newmont Joint Venture began drilling exploration at the WKP prospect with DDH WKP 24 in March 2010. Highlights from results achieved to date are summarised in the press release dated 24 September 2012.

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.

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.

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.

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

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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