Aphrodite Gold to raise up to A$3.8m, plus 1moz gold resource update due in March quarter

Aphrodite Gold (ASX: AQQ) continues to develop the evolving Aphrodite Gold Project near Kalgoorlie, which already boasts a plus one million gold ounce resource.

To progress operations in 2012, Aphrodite has launched a 1:2 non-renounceable pro rata entitlement issue which will raise up to $3.8 million, and highlighting confidence in the company's operations - Patersons Securities will partly underwrite the issue.

Funds will be allocated to progress the exploration, appraisal and development activities.

Investors will be aware that during 2011 Aphrodite discovered some very promising gold intersections, which included the stunning 77 metres at 4.07 grams per tonne (g/t) gold from 139 metres, which included 13 metres at 11.06g/t gold at the Alpha lode.

The importance of the Alpha lode is that forms the eastern portion of the current Aphrodite gold resource area, with the current 1.03 million ounce total gold resource contained within the Alpha and Phi Lodes at the project.

Gold intersections were frequent for Aphrodite during 2011, with other highlights from the June quarter including 31 metres at 7.83g/t gold from 182 metres, including 10 metres at 18.80g/t gold.

The significance of the 2011 data is that drilling confirmed the presence of multiple, wide zones of gold mineralisation within the Alpha structure and within potentially open pit mine depths.


Updated JORC within months

Where the story becomes even more interesting for Aphrodite, is that the company is set to deliver a revised JORC Resource at the end of the March quarter 2012.

This update will include all of the 2011 drilling data, plus all of the 2010 program conducted by Aphrodite, plus additional information from previous tenement owners. Highlighting just how much information will be added to the estimate, there was close to 16,000 metres in 87 holes drilled across the Alpha and Phi Lodes during 2011.

The current full resource is; 10.06 million tonnes at 3.19g/t gold for 1.03 million ounces. This is comprised of an Indicated 3.67 million tonnes at 3.83g/t gold for 451,000 ounces and an Inferred 6.39 million tonnes at 2.83g/t gold for 582,000 ounces.


Feasibility study to be launched

Aphrodite remains busy at the project with a Feasibility Study to kick-off during the March quarter, with a decision to proceed to mining planned for the September or December quarters this year.

Aphrodite is aiming to begin gold production at the project in the second half of 2013.


Scoping Study

In October 2011, Aphrodite undertook a Scoping Study to follow up on positive metallurgical test work that gave greater than 90% gold recoveries from the Alpha Lode.
A 2013 production timetable is planned for Aphrodite.

This study will examine the staged development of the deposit, with initial open pit mining followed by underground development of higher grade resources.

It will also examine the possibility of utilising infrastructure close to the deposit, including processing plants.

One of the major benefits already of the Aphrodite deposit is the strategic location 75 kilometres north of Kalgoorlie and in proximity to regional gold mills in need of feedstock ore.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24316/aphrodite-gold-to-raise-up-to-a38m-plus-1moz-gold-resource-update-due-in-march-quarter-24316.html