WELLINGTON, NEW ZEALAND--(Marketwired - Aug. 1, 2013) - Glass Earth Gold Limited (TSX VENTURE:GEL)(NZAX:GEL) ("Glass Earth Gold" or "GEG") is pleased to announce that it has filed on SEDAR (www.sedar.com) its National Instrument 43-101 Technical Report on the mineral resource estimate for the Wharekirauponga (WKP) gold project, Hauraki Goldfield, New Zealand.
The WKP Project is held by the Hauraki Joint Venture ("HJV") - Newmont Waihi Gold (65%) and GEG (35%) and is located in the southern Hauraki Goldfield, 10km north of the Martha Gold Mine (Newmont Waihi Gold100%), and 110km south-east of Auckland, New Zealand's largest city.
The NI 43-101 compliant mineral resource estimate for the WKP Gold Deposit is shown in Table 1-1, and summarised below:
Resource Summary WKP:
| Resource Category |
Tonnes (Tx1000) |
Grade Gold (g/t) |
Grade
Silver
(g/t) |
Contained Gold (ounces) |
Contained Silver (ounces) |
| Inferred |
1,300 |
6.2 |
9.3 |
260,000 |
390,000 |
The report was prepared by Roscoe Postle Associates Inc. (RPA), a consulting firm which has been retained by the HJV to prepare the Mineral Resource estimate and a supporting independent Technical Report on WKP. This Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects.
RPA estimated Mineral Resources for the WKP deposit using drill hole data available to May 31, 2013. A total of 38 holes have been drilled on the property. At a cut-off grade of 3.0 g/t Au and a true thickness of 1.5 m, Inferred Mineral Resources are estimated to total 1.3 million tonnes at an average grade of 6.2 g/t Au and 9.3 g/t Ag for a total of 260,000 ounces of gold and 390,000 ounces of silver (Table 1-1).
Table 1-1 Mineral Resource Report by Zone, May 31, 2013
Newmont Waihi Gold - Wharekirauponga Project
| INFERRED MINERAL RESOURCES |
| Zone |
Tonnage |
Gold |
Gold |
Silver |
Silver |
| |
(T x 1,000) |
(g/t) |
(ounces) |
(g/t) |
(ounces) |
| Central |
800 |
6.6 |
170,000 |
10.5 |
270,000 |
| Eastern |
430 |
4.8 |
66,000 |
7.5 |
100,000 |
| Western |
90 |
9.7 |
27,000 |
7.8 |
20,000 |
| Total |
1,300 |
6.2 |
260,000 |
9.3 |
390,000 |
| Notes: |
| CIM definitions were followed for Mineral Resources. |
| Mineral Resources are estimated at a cut-off grade of 3.0 g/t Au. |
| Mineral Resources are estimated using a long-term gold price of US$1,500/oz. |
| A minimum mining width of 1.5 m was used. |
| Bulk density is 2.4 t/m3. |
| Numbers may not add due to rounding. |
The Mineral Resources are contained within discrete vein structures within five mineralized vein domains.
The CEO of Glass Earth Gold, Simon Henderson commented on the filing of this report and resource estimate: "It gives us great satisfaction to present to our shareholders this NI 43-101 Technical report and resource estimate which confirms WKP's potential, based on vein mineralization that demonstrate three-dimensional continuity, as well as attractive thickness and grades. The HJV is encouraged by these results and is committed to pursuing further drilling and assaying to expand this resource. Our focus will now be placed on the recently discovered TStream breccia vein and structures related to the EG structure that show the best promise for additional resources, as they host a style of mineralization similar to major gold mines in the vicinity, namely Martha, Favona, and Golden Cross."
GEOLOGICAL FEATURES
The deposit was discovered within a large, low-sulphidation epithermal system, which, in the opinion of RPA, is believed capable of hosting a major gold deposit.
WKP is a typical adularia-sericite low-sulphidation epithermal quartz vein-hosted gold and silver deposit. Gold occurs as electrum, argentite, and possible silver telluride minerals with pyrite, argentiferous pyrite, and arsenopyrite. Three main zones are defined by CSAMT resistivity anomalies, Eastern (including the EG structure), Central (including T-Stream), and Western zones. The Eastern Zone was the focus of exploration by previous owners in the 1980s and 1990s. Recent drilling by the HJV was successful in identifying additional mineralization in the Central Zone including the T-Stream breccia vein, the Eastern EG structure, and the Western Zone. The recently discovered T-Stream breccia vein and EG structure show the best promise for additional resources, as they host a style of mineralization similar to major gold mines in the vicinity, namely Martha, Favona, and Golden Cross.
Diamond drilling has outlined vein mineralization that demonstrates three-dimensional continuity, thickness, and grades that can potentially be extracted economically.
The style and distribution of mineralization could be amenable to open pit mining methods, however, based on the project's location in a Department of Conservation (DoC) administered Forest Park, RPA concurs with Newmont's opinion that underground mining is the only realistic mining method to be considered. RPA therefore modelled and reported underground Mineral Resources only.
The Mineral Resources are contained within discrete vein structures within five mineralized vein domains. Given the broad spaced drilling and style of mineralization, all Mineral Resources were classified as Inferred. Although wireframe models and block grades have been interpreted to distances of 200 m, only blocks within 40 m of a drill hole were reported. There are no Mineral Reserves estimated on the Property.
RPA believes that additional exploration activities are warranted, including 4,500m of drilling, for a budget of NZ$ 3.5 million. The objective is to expand the limits of the known veins, test the selected targets for the presence of additional mineralization, develop new exploration targets, collect preliminary environmental background data, and conduct preliminary metallurgical testing to assist the preparation of future Mineral Resource estimates.
The independent technical report, entitled "NI 43-101 Technical Report on the mineral resource estimate for the Wharekirauponga (WKP) Gold Project, Hauraki, New Zealand" was prepared by David Ross, P.Geo. Principal Geologist with Roscoe Postle Associates Inc. Toronto, who is a Qualified Person under NI 43-101, and has reviewed and approved the technical content of this news release.
Qualified Person
Mr Simon Henderson, MSc Geology (CODES), an AusIMM Chartered Professional under the Discipline of Geology; is a Qualified Person as defined by National Instrument 43-101 and an employee of the Company, has reviewed and approved the technical information given in this press release.
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.
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.