Glass Earth Gold Limited (TSXV-GEL; NZAX-GEL) ("Glass Earth Gold") announced today that it has now fully commissioned its second Gold Recovery Unit ("GRU") at the Hecklers Mine in the Manuherikea Valley, Central Otago.
The current initial production from placer operations at Hecklers and Gunclub mines now stands at 42 ounces of gold a week, with improved throughput and operating hours planned to further increase production. Glass Earth Gold is presently commissioning a third operation which should become fully operational in Q3 2012.
"I am very pleased with the new mining team that has been set up since we took control of placer mining activities. The team has shown a strong commitment to meet our production targets," said Simon Henderson, CEO of Glass Earth Gold.
He added, "The benefits of running these placer gold operations are multi-fold. In addition to providing the Company with a cash flow stream that supports G&A and exploration costs; the Company's small-scale gold production supports the advancement of its projects regardless of market conditions, and also facilitates the early development of additional projects if the opportunity arises."
In 2011, Glass Earth's then 50% share of the placer joint venture contributed CAD$752,000 in gross revenue and CAD$274,000 in net revenue based on operating only one Gold Recovery Unit. The increase in throughput from commissioning two additional GRU's and from gaining 100% ownership of placer gold operations, should enable the Company to achieve its previously articulated production goals of 7,500 ounces per year in 2013 at a cost averaging CAD$900 an ounce.
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