Glass Earth Joint Ventures with Newmont to Explore Waihi Permit

US-based gold miner Newmont Mining Corporation is to form a joint venture with Glass Earth Ltd to explore the Wellington-based company’s Waihi west permit adjacent to Newmont’s Martha mine.

Glass Earth, said in a press release to the Toronto Stock Exchange where the company is listed on the TSX Venture Exchange, that there is good evidence that the gold mineralisation that forms part of the Newmont Waihi Gold-operated Martha mine extends into the Glass Earth’s exploration permit area.

Glass Earth said that under the joint venture Newmont will undertake in the first 12 months an initial NZ$400,000 exploration programme (including drilling) in the 280 hectare EP 40767 immediately to the west and south of the Martha mine.

After a decision point, Newmont would spend an additional NZ$1,100,000 within the next 24 months to earn 60% rights, Glass Earth said.

Newmont could also earn a further 15% after preparing a feasibility study, while Glass Earth said it could also request that Newmont arrange Glass Earth’s share of financing in return for a further 5% equity.

Glass Earth said it would remain responsible for Perth-based Geoinformatics’ 2% royalty on the Glass Earth interest in the Waihi west joint venture.

Glass Earth was awarded the exploration permit, (40767) in December 2005.

Newmont Waihi Gold general manager Adriaan van Kersen, told the New Zealand Minerals Conference late last year that Newmont stepped up its New Zealand exploration programme to $9 million in 2005 from $7 million in 2004.

Martha mine has produced, since it first began in the 1880's, 7.2 million oz of gold and 49 million oz of silver. Since Martha was re-opened in May 1988, as an open pit, the mine has produced 1.6 million oz of gold and 10.9 million oz of silver up until July 2005.

In a separate announcement Glass Earth said it is had completed the first tranche of the $1 million private placement financing for gross proceeds of $0.5 million.

A total of 3,333,333 units at a price of $0.15 per unit were issued. Each unit consists of one common share and a one half share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.25 per share, exercisable for a period of 2 years from the closing date.

The proceeds from the financing will be used to undertake exploration field programmes from April 2006 to July 2006 over the recently-acquired HPD New Zealand Ltd exploration permits, and to commence initial drilling on selected Glass Earth drill targets which will be at drill ready status as a result of exploration programmes that are currently in progress.