Glass Earth Drills First of 14 Defined Gold Targets in Taupo Volcanic Region Permits

Wellington-based listed gold exploration company Glass Earth Ltd has begun drilling the first of its gold targets north of Taupo in the Central Volcanic Region of the North Island.

The geological drill testing programme over the Tahunaatara drill targets approximately halfway between Taupo and Rotorua in Exploration Permit 40770.

Glass Earth says, in a release to the Canadian TSX Venture Exchange, that the initial 500 metre drill programme begun in May is planned to run over the next several weeks to provide stratigraphic targeting information of the most promising of the 14 targets so far defined.

This is the latest stage of an ambitious exploration programme over the Coromandel and Central Volcanic Region where Glass Earth has been exploring for large gold deposits like Waihi which it hopes to locate by “seeing through” the blanket of young volcanic ash which covers most of the region.

The first stage of the programme involved collecting and loading about 40 different geological and geophysical databases from many sources into a proven 3D data intervention technology. This was aimed at establishing the geological and structural parameters which might control gold mineralisation.

The second stage in 2005 was carrying out an airborne geophysical survey —the largest of their type done in New Zealand. 40,000 line kilometres of airborne magnetics and 6,000 line kilometre of ultra - detailed airborne gravity was completed to provide more detailed information on some of its target areas.

Glass Earth said in its 2005 annual report that modelling and interpretation of the existing Waihi gold fields including the Martha mine, demonstrated that the key mineral alteration and structure that have focussed gold mineralisation are clearly identifiable in detailed magnetic and gravity datasets.

Based on the new higher resolution datasets, 106 ranked targets were defined in the Taupo Volcanic Region, of which 21 targets were prioritised. These were the subject of six exploration permit applications granted in December 2005, one of which included Tahunaatara.

The third stage of exploration involved carrying out ground resistivity and gold geochemical surveys over 16 of the 21 drill targets in the new permits. Resistivity techniques distinguish metallic from non-metallic minerals while soil geochemistry tests sample for low level gold and associated minerals. These also establish orientation and depths of gold targets.

In its latest release Glass Earth says that completion of ground resistivity and soil gold geochemical surveying has highlighted that 6 of 14 targets tested to date have coincident magnetic lows (hydrothermal alteration), gravity highs (densification from silicification), resistivity highs (resistive geology, silicification) and traces of gold in the soils (up to 30 ppb).

The initial 500 metre drill programme over the first drill target is planned to provide stratigraphic targeting information of the resistive rocks prior to a more comprehensive reconnaissance drill programme over the most promising of the 14 targets.

Canadian gold exploration company St Andrew Goldfields Ltd said in a share market release that it has increased its interest in Glass Earth to approximately 34% through the purchase of 15.75 million Glass Earth common shares in four separate private share exchange transactions with existing Glass Earth shareholders.