Glass Earth Gold is seeking to sell franchises within its Central Otago alluvial gold operations, and to make the venture self-funding for further exploration.
Chief executive Simon Henderson said the listed gold explorer had hit its straps with its alluvial operation before Christmas, producing 70 ounces to 80 ounces of gold a week. However, there was room for improvement.
The operation was cashflow positive for paying staff and meeting other overheads, but it could also pay its own way for further exploration in the area if production was raised to 120 ounces a week, Henderson said.
Glass Earth was operating two alluvial washing plants in the Manuherikia Valley, each employing five to seven people. "If we could get another 50 per cent increase in gold we would probably sustain not just the administrative costs and all the wages and salaries, but we would sustain probably all the exploration [in the area]."
Production could be lifted to the 100-ounces-a-week level by better configuration of machinery and better productivity, he added. "There are two big plants operating. They've been operating at about 65 per cent productivity. If we could get up to 85 per cent, we could get that increase in productivity."
Glass Earth is also looking to add two extra alluvial plant machines either through its own backing or by bringing in partners as franchise operators to process deposits in the Central Otago area.
"We're looking to do that [franchise] in the next two to three months. We have two other mining permits with the resources defined and we have two partners willing to do that work." The other permits were in the Ida Valley and Maniototo regions.
This week, Glass Earth, listed on both Toronto and New Zealand exchanges, said it had closed the second tranche of its previously announced private placement to raise C$3.76 million (NZ$4.56m) of gross proceeds to develop gold and silver prospects in the Hauraki region.
The placement is for 18.75 million shares at C16 cents, as well as an option to buy up to the same number for C25c within two years.
In the second tranche, a total of 3,343,750 units had been sold at C16c each for gross proceeds of C$535,000.
The company anticipated closing a final tranche shortly, with agreements for a further C$274,000 received and being processed.
- ? Fairfax NZ News
Source: http://www.stuff.co.nz/business/industries/8160539/Miner-looks-at-franchising-options
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