Glass Earth Gold Limited
TSX VENTURE : GEL

Glass Earth Gold Limited

January 27, 2012 06:00 ET

Glass Earth Gold Reports 17m @ 1.58 g/t Gold and 1.65 g/t Silver from Drilling at Muirs Gold Project

WELLINGTON, NEW ZEALAND--(Marketwire - Jan. 27, 2012) - Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth Gold") is pleased to announce the first results of drilling at its 100% owned Muirs Reef prospect in New Zealand. This drilling is the first of 17 diamond holes (~2500m) planned to identify gold resources in an area known as Massey Reef.

Glass Earth Gold reports results from its Massey Reef drilling programme, defining extensions to known reef systems both along strike north and south, and at depth. MSDDH 08 drilled extensive colloform banded, platly quartz (after calcite) over a 17 m interval, within an envelope of strong hydrothermal alteration and minor quartz veinlets in andesitic pyroclastics. The hole terminated at 87 m.

Table 1: Significant recent drilling results at Massey Reef, Muirs Project
Drillhole ID FROM TO Interval m Au g/t Ag g/t
MSDDH 08 5 7 2 @ 2.46 2.2
22 39 17 @ 1.58 1.7
including 26 31 5 @ 3.35 2.5

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

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

A second hole (MSDDH 09) has now been completed underneath and on section of MSDDH 08. MSDDH09 intersected quartz veining from 64.6m to 67m and silicic hydrothermal breccia from 103m to 117m, assays are pending. A third hole (MSDDH 10) is now in progress 25 m along section to the north (see map).

Petrology and mineralogy of samples from surface and drill-core indicate gold deposition at high levels of an epithermal system, with depth potential of several hundreds of metres.

The Muirs gold prospect lies 65 km southeast of the Martha Mine (Newmont Mining, 10 million ounces 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 (see map).

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 2. 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. If successful the programme is expected produce data of sufficient density to model a gold resource to NI 43-101 standard.

Table 2: Significant recent trenching results at Massey Reef, Muirs Project
Channel No FROM TO Interval m Au g/t Ag g/t
MSTR01 0 28 28 @ 1.78 2.4
including 15 16 1 @ 8.7 7.4
MSTR02 0 23 23 @ 1.13 0.9
including 11 12 1 @ 7.91 0.3
MSTR03 0 7 7 @ 0.89 0.7
MSTR04 0 18 18 @ 0.36 0.4
MSTR06 0 24 24 @ 5.72 1.9
including 0 1 1 @ 26.1 8.8
including 15 16 1 @ 33.4 9.9
MSTR07 0 14 14 @ 1.81 1.2
including 2 3 1 @ 7.03 3.5
MSTR08 0 18 18 @ 0.43 0.4
MSTR11 0 1 1 @ 1.2 0.7
MSTR11 8 10 2 @ 3.63 1.4
MSTR12 9 13 4 @ 1.49 0.7
MSTR13 16 26 10 @ 3.14 1.7
MSTR14 1 2 1 @ 6.96 2.9
MSTR15 15 16 1 @ 1.36 2.1
MSTR15 20 26 6 @ 1.19 1
MSTR23 0 5 5 @ 1.71 1.4

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 over 10,000 square kilometres, in both the North and South Islands. The company held a net cash position of C$3.6 M at the end of Q4 2011 to fund exploration progress.

In the North Island, exploration efforts are focused on large epithermal gold systems in the Hauraki/Central Volcanic Region. This region is host to the 10 million ounce Martha Mine, (Newmont Mining):

In the Hauraki Region - Glass Earth Gold 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 West discovery, is being actively explored and managed by Newmont in concert with Glass Earth Gold.

And, in the Central Volcanic Region - Glass Earth Gold has defined several significant epithermal gold targets in this region including the Muirs prospect. 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 planned to prove up the resource.

In the South Island, exploration efforts are focused on the Otago Region for identification of mesothermal "Macraes-style" gold targets and revenue generation through placer (alluvial) gold production:

In the Otago Region - The drilling of highly ranked Hindon and Game Hen gold targets has commenced.

Qualified Person

Mr Kyle Howie, Member of the Australian Institute of Geoscientists, Glass Earth's Senior Geologist, is the Qualified Person for Glass Earth Gold regarding the Muirs Reef Project. Mr Howie has reviewed and approved this news release.

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

To view the first map, please visit the following link: http://media3.marketwire.com/docs/ged12F1.pdf

To view the second map, please visit the following link: http://media3.marketwire.com/docs/ged12F2.pdf

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.

Contact Information