Glass Earth Gold has doubled gold production from the placer (alluvial) mining operations in Manuherikia Valley of New Zealand’s South Island with the Drybread project site achieving 70-80 ounces of gold per week.
The higher production has been achieved in some lower grade areas and now, both gold recovery units are working their way to higher grade ground where further production increases and efficiencies are anticipated. An average of 10 ounces of gold per week was achieved in March from a single plant.
Glass Earth Gold’s chief executive officer Simon Henderson says, “We are delighted with the steady progress in our placer production and look forward to further efficiencies and improvements as we mine higher grade material during New Zealand’s summer months ahead.”
Cashflow from these current operations are adding to the company’s exploration budget at the 35%-owned WKP prospect on the North Island. Glass Earth has also acquired option rights to the Neavesville gold/silver prospect which is just north of WKP, and means an increased exploration focus in the Hauraki region.
A recent 5500 metre diamond drill program at the WKP prospect intersected a large permissive gold system with the potential to host significant epithermal gold deposits. Highlights include an intersection of 7.9 metres @ 5.1 grams/tonne gold and 12.1 grams/tonne silver, including 3.4 metres @ 8.3 grams/tonne gold and 16.6 grams/tonne silver.
The company says it also discovered a major new structure hosting epithermal gold mineralization similar to major gold mines in the region including Martha, Favona and Golden Cross.
Simon Henderson says every drill hole has intersected significant mineralization and demonstrated potential for both narrow high grade gold veins, and or broad low grade. “The discovery of this new Eastern Graben structure is a major step forward for the WKP project because the style of mineralization intersected shows strong similarities to other productive gold-silver veins in the district. We are very encouraged by the result from this hole. Step-out drill testing is already under way.”