Otago gold explorer and boutique producer Glass Earth Gold is looking to treble its gold production out of Otago this year and has secured the third and final tranche of $C4 million ($NZ5.2 million) in private placements for ongoing working capital.
Glass Earth has spent more than $25 million exploring mainly around Otago during the past four years and ran perilously close to exhausting cash reserves, but in August last year generated its first cash-flow, booking almost $120,000 income from gold and equipment leasing to cushion an $866,000 loss for the half-year to June.
Chief executive Simon Henderson is upbeat about the year ahead, after having to scale back some capital expenditure and expenses during the past almost two years.
"We're expecting a better year ahead, with plenty in the pipeline," Mr Henderson said The private placement had been fully completed and the net proceeds from the $C4.06 million would be used for mineral exploration and general working capital purposes, he said.
Glass Earth's principal listing is on the Toronto stock exchange, where, like New Zealand's largest producer, Oceana Gold in East Otago, it has found repeated interest and backing from mining-friendly, less risk-averse investors.
Otago field programmes to start test drilling of the highly ranked Serpentine and Game Hen gold targets in Central Otago is planned early this year.
Mr Henderson said two alluvial mining operations in Otago would continue in 2011, with an acceleration of alluvial exploration and resource definition.
He said Glass Earth and 50:50 mining partner Dunstan Mining Ltd "plan to treble gold output in 2011" and were targeting about 3000oz this year, and potentially more in 2012.
Glass Earth took about 1000oz of gold from its McAdies, Ida Valley, prospect last year.
At yesterday's global spot price of $US1367 ($NZ1775), 3000oz would be worth $US4.1 million.
In Hauraki, Glass Earth holds permitted ground around the Martha gold mine, in Waihi.
It has a joint venture with operator Newmont, with test drilling to begin next month.
In the central volcanic region in the North Island, Glass Earth has several gold targets.
Two rigs are drilling - in the Muirs reef (with four holes completed and fifth shortly) and Massey reef; with results anticipated in weeks.
Southern explorer listed L&M Energy has resumed drilling at its Ohai pilot coal-seam gas site in Southland.
In October, its estimated gas reserves were upgraded 60% from 173 petajoules to 274 petajoules.
While booking a $9.7 million loss for the six months to June last year, L&M subsequently underpinned southern exploration costs for the year after raising $10 million.
New Zealand has secured oil reserves for this year that ensure the country will continue to meet its international obligations, Energy and Resources Minister Gerry Brownlee says.
As a member of the International Energy Agency (IEA), New Zealand's 90-day reserve obligation is 1.2 million tonnes.
He said the need for additional oil reserves to meet targets fell over the past five years as domestic production rose.
Additional oil reserves have been secured through a global tender, with stocks held under contracts which allow the Government to purchase petrol in the event of an IEA-declared emergency.
