Second project approved for gold mining company

Listed gold exploration company Glass Earth Gold has started gold production from placer mining of alluvial deposits in Otago, and has been granted a mining permit and consents for a second project.

In an update yesterday, the company also said it had closed a non-brokered private placement raising C$371,000 ($510,000), having aimed to raise up to C$500,000 when the placement was announced in October.

Glass Earth said placer mining at McAdies in the Ida Valley started in mid-December, and weekly production was now in line with expectations.

Consents and a mining permit had also been granted for the Gun Club placer gold project, also in the Ida Valley.

Together with a 40-tonne placer gold plant currently leased out on the Earnscleugh Project in nearby Alexandra, Glass Earth said it intended to have three placer projects contributing to gold production and cash flow in the first quarter of 2010.

The placer operations were managed by 50 per cent joint venture partner Dunstan Mining.

- NZPA