Document Actions
Glass Earth plans more drilling at Muirs Reef gold target
2 July 2010 - Wellington-based gold exploration company Glass Earth Gold Ltd plans a major drilling programme at its Muirs Reef gold prospect in the Bay of Plenty following the completion of a C$2,730,100 (approx NZ$3,700,000) private funding placement.
Sources: Glass Earth Gold and Lindsay Clark
Simon Henderson, president and CEO of the Canadian-listed Glass Earth Gold said the funds will be predominantly spent in the ground, drilling four identified and ready to drill targets, including three in the South Island.
“We are planning a 27-drill hole program at Muirs Reef (near Te Puke in the Bay of Plenty) to confirm and hope to expand its historical non NI 43-101 resource of 390,000 oz @ 1.5 g/t Au.”
In the March quarter report for 2010 Glass Earth said that three deep diamond drill holes drilled at Muirs in 2008 returned several gold intercepts with the Massey Reef interpreted to be a sheeted vein system consisting of several banded quartz veins up to 5 m in width with interstitial stock work veining and brecciation.
Results from gradient array resistivity profiling completed in 2009 indicated the potential for several major new veins and extensions of existing veins particularly west of the Muirs veins.
Mr Henderson said in the latest report that in the South Island, Glass Earth “will drill three other targets that we believe have ‘game-changing’ potential for our company.”
He said operations this year had been gratifying with the company’s placer gold mining site at McAdies in Ida Valley area of central Otago since December 2009, achieving gold sales which mostly offset G & A expenses. As a result, the recent private placement funds raised will be largely spent on exploring new ground.
The first quarter report said that detailed geological mapping carried out across the Raggedy Range in Central Otago, between Ophir and Poolburn, supports a broader structural and lithological interpretation for the area in the context of known gold-mineralised sites.
Following rock chip sampling a detailed 317 line km ground magnetic survey was completed across Ophir to complement the airborne geophysical data previously acquired.
A pilot plant was developed to bulk test material from the Ophir area (primarily the Wai-iti shear initially) to ascertain the optimal crushing set-up before any decision was made to mine or build a full scale processing plant.
After an inconclusive bulk test, grinding tests were commissioned which indicate good recoveries by gravity separation methods at a finer grind. Work is ongoing.
Related links
Gold production statistics - Mineral resources fact sheets - More news
