Glass Earth Gold's working capital has shrunk below $1 million for the first time since its October 2006 dual listing on the Toronto and New Zealand stock exchanges, after the company spent more than $24 million in that period on exploration around the country, mainly in Otago.
The explorer is looking to become a boutique gold producer to create cashflow, having late last week posted a third-quarter loss of $218,000, leaving it with working capital of $934,000.
In October, Glass Earth announced it intended to undertake a private placement in Canada for financing of $667,000 and as at November 26, $381,000 had been received.
Glass Earth's chief executive Simon Henderson said working capital of $934,000 at September 30, together with "cash from or work undertaken by contributing joint venturers", was budgeted to carry the company through into "early 2010".
"Cash generated from placer [alluvial] mining, in the Ida Valley, or boutique hard rock mining, near Ophir, would be additional to this," he said in a market update.
All consents for the McAdies alluvial gold mining project in the Ida Valley were expected to be in place by this week.
"All necessary equipment is in place and ready to be mobilised to site with commencement of mining expected shortly afterwards," he said.
Also in the Ida Valley, consent applications for the Gun Club/Nevills alluvial (loose) gold project, had been lodged and were being processed, he said.
Last month, Glass Earth recovered some gold during bulk testing using a seven-tonne crushing plant near Ophir.
Mr Henderson said a 40-tonne floating gold recovery unit, bought in conjunction with a mining partner, was being leased out.
The company was continuing exploration elsewhere, including the test drilling in the Mamaku volcanic region, plus stream and pan-concentrate sampling in Marlborough, outside known historical workings.
