WELLINGTON, NEW ZEALAND--(Marketwired - April 12, 2013) - Glass Earth Gold Limited (News - Market indicators)(NZAX:GEL) ("Glass Earth" or the "Company"), announced today that it has filed its December 31, 2012 Year End Financial Statements and associated Management's Discussion and Analysis ("MD&A") report pertaining to that period with appropriate regulatory authorities.
During 2012, the Company announced the completion of fundraising exercises which raised a net $5.8 million (after issuance costs). As at 31 December 2012, the Company held $2.6m in cash. All dollars reported in this News Release are in Canadian Dollars.
The Company recorded a net loss for 2012 totaling $11.1million (2011 - $1.7 million) of which the write-off of accumulated exploration costs comprised $7.7m. Most of these costs were written off in Q2 and full explanations of those circumstances are included in the Q2 Management Discussion & Analysis report lodged on 30 August 2012.
Placer mining production increased fourfold but costs, including establishment, commissioning and refurbishment of gear, resulted in a loss of $1.1m for the year. Placer mining at Drybread is performing better since year-end and further improvements in mine planning and performance are under continuous review.
The net loss for the year can include significant non-cash items (all in Canadian $'s):
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12 months ended
December 31, 2012 |
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12 months ended
December 31, 2011 |
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| Revenue |
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2,976,000 |
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752,000 |
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| Cost of sales |
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(4,121,000 |
) |
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(523,000 |
) |
| Gross (loss)/profit |
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(1,145,000 |
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229,000 |
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| Cash operating costs |
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| Operating loss |
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1,443,000 |
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1,260,000 |
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| Foreign exchange loss/(gain) |
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78,000 |
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(18,000 |
) |
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1,521,000 |
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1,242,000 |
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| Non-Cash expenses |
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| Write down Mineral Properties |
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7,682,000 |
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695,000 |
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| Stock based compensation |
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620,000 |
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43,000 |
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| Income tax expense/(benefit) - deferred |
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167,000 |
|
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(37,000 |
) |
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8,469,000 |
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701,000 |
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| Net loss for the year |
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11,135,000 |
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|
1,714,000 |
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About Glass Earth Gold
Glass Earth Gold is one of New Zealand's most active gold exploration companies with landholdings proximal to producing deposits and cash flow from its wholly owned placer projects. With an experienced geological team the Company is exploring promising gold prospects across both the North and South Islands.
In the North Island, exploration efforts are focused on large epithermal gold systems in the Hauraki Region, akin to the operating Martha Hill mine, (Newmont Mining).
In the Hauraki Region, Glass Earth Gold has identified and developed significant ground positions around the active Martha Hill gold mine operations at Waihi. The Newmont-Glass Earth Gold Waihi West JV (Newmont earning in) and Hauraki JV (65/35), including drilling at the WKP discovery, are being actively explored and managed by Newmont in collaboration with Glass Earth Gold.
The recent announcement that Glass Earth Gold has acquired option rights to the Neavesville gold/silver prospect (just north of WKP) will mean an increased exploration focus in the Hauraki region.
In the South Island, exploration efforts are focused on the Otago Region, home to OceanaGold's Macraes Goldfield, for identification of mesothermal "Macraes-style" gold targets and revenue generation through placer (alluvial) gold production.
For more information on Glass Earth Gold, please visit www.glassearthgold.com.
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.