Glass Earth Gold figures miss mark in Toronto

MICHAEL BERRY
Last updated 05:00 26/12/2012

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A Canadian securities commission has forced boutique goldminer Glass Earth Gold to amend or remove its resource estimates after finding them non-compliant.

The company had to alter accompanying past statements that were considered too bullish as well.

Glass Earth is listed on both the NZX and the Toronto Stock Exchange.

The British Columbia Securities Commission added the company to its defaulting issuers list on December 11 because of the problems it found when reviewing the company's disclosures.

In a statement, Glass Earth said it had changed or removed all non-compliant disclosures of historical resource estimates, current resource estimates, and measures of gold in exploration targets.

Some previous disclosures had not included requisite cautionary language either.

A recent in-house estimate of 5.6 million tonnes grading 1.25 grams per tonne at its Muir's Reef prospect near Tauranga had been retracted.

The prospect has a historical estimate of 390,000 ounces (12 tonnes) of gold at a grade of 1.5 grams a tonne and that was only an approximation, with further drill exploration needed. A qualified person had not done enough work to classify that historical estimate as current so Glass Earth could not treat it as such.

It was based on 45 drill holes made between 1969 and 1995 and due to the poor reliability of the estimate, the resource cannot be divided into inferred or other resource classifications used today.

A 2008 "global" resource estimate of its WKP project near Waihi had also been withdrawn because it had not complied with the estimation rules.

Its alluvial mining projects near Alexandra combined inferred and indicated gold classifications and had missing backup information.

Glass Earth said it hoped to release rectifying technical reports it was developing by January 21. Fairfax NZ

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