Glass Earth Gold in 'strong' position for exploration

Monday 2nd May 2011

Gold exploration company Glass Earth Gold says it is in a strong position for drilling activities in 2011, after raising a gross C$6.2 million (NZ$8.1 million) from two fundraising exercises last year.

As at December 31, the company had C$3.9 million in cash with a further C$500,000 received from completion of fundraising in early January. Also helping was increasing income from placer, or alluvial, mining, Glass Earth said today.

In 2010 the company reported a net loss of C$1.47 million, compared to a loss of C$2.68 million in 2009.

Revenue from placer mining activities in Otago made its first contribution last year, with cash generation totalling C$357,000.

Exploration and development costs associated with the establishment of the place operations was amortised completely against revenue as a conservative approach, the company said.

Placer mining expansion this year should see a significant rise in both gross and net revenue.

As a gold exploration company, Glass Earth was classified as being at the development stage, as it had modest mining income for now.

Glass Earth shares last traded at 30c, having ranged between 44c and 25c in the past year.

NZPA

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