Gold Co could seek NZX listing

By NZPA

Thursday 18th August 2005

Gold explorer Glass Earth is considering listing on the local exchange as it prepares to release an aerial mapping survey showing gold prospects potentially worth billions of dollars.

The Wellington-based firm, which listed on the Toronto Stock Exchange's Ventures market in April after a reverse-takeover of a shell company, is planning a secondary listing in the next six months, as early explorations come a step closer to delivering the goods.

"Having established that we are bona fide via the Toronto exchange, we are getting to a stage where a lot of the risk is taken away, and we could look to the New Zealand market for further funding," Glass Earth's chief operating officer Simon Henderson said.

The firm has met NZX head Mark Weldon and the listing could be as close as a month away, timed to ride on the coat-tails of the survey's release.

Glass Earth was founded in 2002 to look for "epithermal gold" - formed when hot fluids rise to the surface - in the central volcanic region from Taupo to Tauranga.

It uses sophisticated computer mapping - largely GPS and 3D technology - to pinpoint areas for potential gold exploration.

Last month it completed a three-month aerial survey of the region using detailed magnetic and gravity-based technology.

The technology is able to "see through" surface ash layers to measure the magnetic properties and weight of rocks buried up to 2km below the earth's surface for signs of gold.

Henderson, the driving force behind the project, is a Kiwi geologist with 30 years' experience in the gold exploration industry, including 18 years with Australian miner Otter Gold.

He says the project has the potential to unearth another Martha Hill - the open pit mine in Waihi in the Bay of Plenty that was discovered in 1878 and became one of the country's richest.

"The main target is a major world class gold deposit like Martha Hill," he said.

"A single Martha Hill in modern day terms is something like a $7-8 billion resource."

Glass Earth has identified 29 priority gold target areas from existing legacy data. The latest survey will help define drill targets for the firm to begin exploratory work. It would then seek a major company to take on the mining operations.

The survey is also likely to reveal sites for new thermal power stations - a potential money spinner as the country's current energy resources struggle to keep pace with demand.

"An epithermal gold deposit is an extinct geothermal system and while looking for cold ones we find hot ones," Henderson said.

"We think the timing's good. If you think of Meridian's power developments at Makara. They are talking $350 million to develop a 160MW power station. Geothermal can do that for a half to a third of the price."

Glass Earth may have trouble attracting local investors, however, in what is traditionally a very risk-averse market.

The firm chose Toronto for its initial listing because Canada's mining roots mean investors are willing to back high-risk exploration.

"Canada cut its teeth on mining," Henderson said.

"It has a reputation for grub staking (funding) junior exploration companies. It goes back to the old days of the prospector going off into the hills and being given a swag and a pan and food for three months and told to go and find gold."

Gold doesn't have the same romantic allure in New Zealand. Increased environmental costs stemming from the Resource Management Act mean only small scale operators - mining creek beds - or big operators like Macraes, Martha Hill and the nearby Favona can make mining economic. The last major gold exploration was in the 1970s.

"New Zealanders want to see a balance sheet with product developed and into the market within 12 months," Henderson said.

"Mineral exploration is not that type of commodity. It has a five to 10 year period of development and exploration before the potential, literally, "licence to print money" if a major discovery is made."

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