AQQ - Aphrodite Gold

[Joe Blow]

Aphrodite Gold Limited (AQQ) is a new gold mining company formed for the sole purpose of acquiring and bringing into production the advanced Aphrodite Gold Project near Kalgoorlie in Western Australia.

http://www.aphroditegold.com.au

 

[Pairs Trader]

AQQ will be listing on Tuesday or Wednesday coming, should do quite well. UBS have backed it plus a US hedge fund is said to have put 3m in the IPO, not to mention the strong pedigree of board members, 1m proven ounces underground plus a expected resource upgrade and aussie gold at $1,400 with cost at about $600 per oz, could mean over $800m of profits underground, close to productions facilities, sufficient capital funding, successful IPO priced at 27m market cap, well laid out plan to start 70-80k oz per year production by 2012, and bullish sentiment towards gold is very robust and has plenty of room to go. Gold will have to go over $5,000 an ounce to make new inflation-adjusted highs which always happens in every bull market, if it does John Paulson(trader who made 21billion shorting subprime) will be the worlds richest man with his newly formed gold-dedicated hedge fund. AQQ doesn't look too shabby at all....

Did you get any IPO Joe?

 

[Pairs Trader]

Just got off the phone with Aaron from Aphrodite, confirmed with him AQQ will be listing at 1pm this Friday. All else is good, business as usual he said.

 

[Pairs Trader]

ASX delayed listing, AQQ hits the official ASX quotation list today and trading will commence at 1pm EST this Wednesday. Its been a long wait, but I think it will be worth it, at 20c IPO price is equivalent to paying $27 per proven JORC ounce underground, most ASX gold developers at valued around $55 per ounce underground resources, some much higher depending on location to production facilities, capital funding, management, time frame to production, potential for resource upgrade, so AQQ could easily surpass the 40c mark this year especially with a rising GOLD/AUD tailwind.

This is all just my humble opinion and not investment advice, yada yada.....

 

[craigj]

interesting company to research

IPO price 20c July2010
current price 11.5c

million oz gold in ground
2 successful drills so far to increase resource

plenty of cash for further drilling since IPO

oppies are trading at 2.8c with 2013 strike at 20c

dyor but to me seems a very cheap entry point with a good risk to reward ratio

anyones thoughts ??

 

[mercury10]

interesting company to research

IPO price 20c July2010
current price 11.5c

million oz gold in ground
2 successful drills so far to increase resource

plenty of cash for further drilling since IPO

oppies are trading at 2.8c with 2013 strike at 20c

dyor but to me seems a very cheap entry point with a good risk to reward ratio

anyones thoughts ??

Also very interested.Made some money on NQM and would like another low cap gold stock to get into.
This or any others anyone know anything about.

 

[exgeo]

I keep a spreadsheet of around 150 small Aussie gold hopefuls. AQQ is among the cheap group which either went bust or were taken over/merged, such as Monarch and Gleneagle (producers who eventually went bust) and Zedex, Bellamel, BMA Gold (producers or explorers who got bought because they were too cheap on an oz in the ground basis).

Upside, who knows, maybe none! But downside seems pretty limited.

 

[springhill]

MC - $9.5m
Current SP - 4.7c
FPO shares - 204m
Options - 76.8m (20c@ 31/12/13)
Cash - $1.5m

Share price has increased 50% in the last 2-3 weeks.

APHRODITE GOLD PROJECT
Scoping Study
A scoping Study to determine a preferred mining and processing scenario for economically exploiting the Aphrodite Gold Deposit was completed and announced to the ASX on the 9 February 2012.
The preferred mining scenario selected by Tetra Tech is a contractor operated, selective open pit and underground mine providing feed to an onsite process plant at a nominal rate of 750,000tpa. The total project life is estimated at nine (9) years, with the open pit operating from Year 0 to Year 5 and the underground operating from Year 2 to Year 8.

Resources
AQQ have split their resource into 2 catagories, open pit (0-150m) and underground (150-440m)


Open Pit
Cut off Grade - 0.5g/t
Indicated - 5,790,000t @1.84g/t for 342,000oz
Inferred -1,410,000t @1.49g/t for 67,000oz

Cut off Grade - 1.0g/t
Indicated - 3,300,000t @ 2.73g/t for 290,000oz
Inferred - 660,000t @ 2.43g/t for 52,000oz

Underground
Cut off - 3.0g/t
Indicated - 1,520,000t @ 6.21g/t for 303,000oz
Inferred -1,460,000t @ 7.01g/t for 328,000oz

Cut off - 4.0g/t
Indicated - 1,080,000t @ 7.42g/t for 258,000oz
Inferred - 1,050,000t @ 8.38g/t for 284,000oz

Since then further drill results have been released including,
5m @ 5.67 g/t (155-160m) including 1m @ 15.36 g/t (159-160m)
17m @ 2.68 g/t (52-69m)
6m @ 2.93 g/t (66-72m)
9m @ 1.61 g/t (109-118m)

Mining
A number of mining scenarios were analysed to identify a preferred mining option that maximises resource recovery and project Net Present Value (NPV). Pit optimisation was performed using $1,350/oz gold price to determine potential open pit and underground mining inventories and select a target plant throughput. 90% process recovery was assumed for all material types during the pit optimisation process.

Open Pit Mining
Open pit movement will be evenly distributed between two pushbacks to create two near symmetrical linked pits, on the Alpha and Phi lodes with an adjoining ‘saddle’ from which a portal will be developed to access higher grade underground ore. Mineralised linking structures (referred to as Epsilon) between the lodes may reduce the size of the saddle between Alpha and Phi pits in the future.
The combined pit will be around 670 metres in diameter with a maximum depth of 195 metres on the Alpha lode and 190 metres on Phi. The average waste-to-ore ratio is estimated at 12:1. Approximately 60 metres of sand, clay and weathered rock overburden will be removed from the deposit and used for tailings dam construction or placed in the waste storage facility.


Underground Mining
A conceptual mine design was created to illustrate access, ventilation, decline and level development requirements.
The in-pit portal, for development of the decline, would be located on the saddle between pits Alpha and Phi, approximately 75 m below ground surface. The central decline extends from the portal down to approximately 450 metres below the surface, spiralling down between the Alpha and Phi lodes

Mine Scheduling
A total of 5.0Mt will be scheduled for processing at an average grade of 3.8g/t containing 610,000 oz of gold over a project life of 9 years. The estimated average (diluted) gold grade of open pit and underground ore is 2.3 g/t and 5.5 g/t respectively.

An initial pre-strip will be required to ensure a sustainable mill feed of 750,000tpa is achieved early in the mine life. This will be done while the processing plant is being constructed. Pre-strip will be prioritised to the Alpha pit to speed up exposure of fresh rock for development of the portal.
Underground pre-production development commences in Year 1, after the portal position is exposed. Full underground production starts in Year 2 and is maintained until Year 8, targeting an average of 365,000tpa of high grade ore. Gold production over life of project is estimated at 550,000 ounces with peak production of around 85,000 ounces per annum in Years 2 to 6

Metallurgical Testwork
To provide a basis for the Scoping Study a metallurgical testwork program was undertaken immediately prior to the commencement of the Scoping Study to determine the metallurgical properties of the mineralisation.
The testwork showed that the deposit contains both free milling and refractory ore.

Significantly, the refractory material performed very well during the flotation tests where a high gold grade, sulphide concentrate was produced at a very low mass pull. Gold recoveries of 91.3% were achieved in 2.9% of the mass at a grade of 46.35 g/t gold.
Further testwork has been recommended by METS.

Capital and Operating Cost Estimates
Capital and operating cost estimates have been developed by METS for the proposed process plant with a capacity of 1 Mtpa with an accuracy of ±35%.
The capital cost estimate for a new processing plant is $108M. The estimate is calculated through the addition of direct and indirect costs and a contingency allowance to cover the level of risk associated with a project of this level and scope. Other initial capital items include infrastructure ($10M) and pre-stripping ($37M). An additional sustaining capital cost over the life of the project is estimated at $89M, including underground development.

Cash costs per oz around $760.

There have also been recent board changes.
Aphrodite Gold Limited (ASX:AQQ) advises that Director Peter Buttigieg, also the Company’s largest individual Shareholder, has been elected to the role of non-executive Chairman.
The Company is pleased to also advise of the appointment of Melbourne based Paul Maurice Weston as Marketing Director. Paul is a highly experienced corporate marketing consultant whose role will be to increase market and investor awareness of Aphrodite and its Aphrodite Gold Project near Kalgoorlie in Western Australia.
He has acted as a Director of and consultant to a number of ASX listed mining companies, and has assisted to obtain ASX, FTSE or NASDAQ listing for them as well as domestic and international interest and support. This included arrangement of press, business television, independent investment analysis and investor presentations.
His market successes includes developing British Telecom’s Australian subsidiary (BT Australia) from start up to 15,000 business customers and $140 million p/a sales in less than 2 years.

 

[System]

On January 8th, 2018, Aphrodite Gold Limited (AQQ) was removed from the ASX's official list in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement by which Spitfire Materials Limited acquired all of the Company’s issued capital.