WELLINGTON, NEW ZEALAND, Nov. 12, 2009 (Marketwire) -- Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth") -
- Pilot processing plant construction completed, bulk testing commenced on the Wai-iti gold vein.
- Gold soil geochemistry highlights potential for new gold bearing vein/shears
- Ultra-detailed ground magnetics demonstrates gold geochemistry hosted on green schist margins pointing to several new vein/shears.
Glass Earth Gold Limited is pleased to provide an update on its work on the Ophir gold prospect (last reported on August 18).
The Ophir Prospect (in a 50:50 JV with Ophir Gold Ltd) is located on Exploration Permits 40 427, 40 870, part 40 702 and part PP 39 322 ("Ophir JV area") in the heart of Central Otago, reef-gold country, in the South Island of New Zealand (see map below). Numerous highly prospective mineralized reefs, as well as near-surface gold bearing gravels, contribute to the excellent potential of the overall Joint Venture Area.
Glass Earth has recently constructed a purpose-built pilot plant (5-7 tonnes/hour throughput) designed to recover coarse/fine free gold by means of conventional crushing/grinding followed by a gravity separation process. An initial bulk sample of approximately 150 m3 is currently being processed in order to confirm the crushing parameters and recoveries. Following this test, the pilot plant will be relocated on site at the Wai-iti vein system for additional bulk testing.
Following a successful Evaluation Phase (November 2009), an affirmative decision to mine would allow for the construction of a larger plant (circa 40 tonnes/hour throughput), completion of regulatory consents and mining. The potential to replicate the mining on other pods of near-surface ore will be progressively evaluated thereafter.
In terms of the farm-in to the JV, Glass Earth is required to solely fund the Evaluation Phase study as well as the design, resource permitting and installation of suitable processing plant on the chosen mining site.
Glass Earth has also expended 60% of the requisite NZ$250,000 (approximately C$185,000) on other exploration initiatives in the JV Area; the preliminary focus having been on EP 40 427 and the Wai-iti vein system therein.
Glass Earth undertook geological mapping across the Ophir JV area, collecting and assaying 30 rock-chip samples and 672 soil samples. Legacy and Glass Earth derived soil samples both display new NW trending gold anomalies. High grade rock samples up to 56 ppm gold have been taken from trenches and adit sampling across the Wai-iti shear.
Glass Earth has also completed a detailed ground magnetic survey to complement the airborne geophysical data acquired in a previous survey, providing accurate delineation of the greenschist lithologies which host important shear/vein systems on its margins.
Combined, the greenschist margins and new soil gold geochemistry highlight potential for several new gold bearing shear/vein systems.
Further updates on other aspects of Glass Earth's exploration efforts will be provided shortly.
Glass Earth's exploration programmes are carried out under the supervision of Glass Earth's President and CEO, Simon Henderson, M.Sc, M.AUSIMM, F.SEG. 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 Gold Limited
Glass Earth is one of the largest New Zealand-based gold exploration companies exploring a land position of over 17,000 km2 in the North and South Islands. With its main office in Wellington, New Zealand, Glass Earth Gold Limited is listed on the TSX Venture Exchange (TSX VENTURE:GEL) and the New Zealand Alternative Stock Exchange (NZAX:GEL).
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