Eagle Eye Metals (ASX: EYE) has announced that its shareholders will be offered a Priority Entitlement to take up securities in the Initial Public Offering by Aphrodite Gold Limited. The offer applies to shareholders registered at 21 May, 2010.
Eagle Eye holds an Option over a 20% interest in the Aphrodite Gold Project, and is Aphrodite Gold Limited’s largest single shareholder with Eagle Eye Chairman Warren Staude and Finance Director Wayne Ryder on Aphrodite's board.
Aphrodite lodged a prospectus with Australian Securities and Investments Commission (ASIC) on 6 May 2010, to raise up to $10 million to fund development of the Aphrodite Gold Project near Kalgoorlie, Western Australia.
Aphrodite retained internationally recognised Coffey Mining to undertake a resource estimate of the gold lodes at the Aphrodite Gold Project and to prepare an Independent Geologist’s Report (IGR) for their Prospectus.
Coffey Mining estimated a substantial JORC compliant Mineral Resource containing 983,000 ounces of gold for the Project. The IGR also states that there is a significant inventory of unclassified gold mineralisation also present within the project.
This unclassified component represents an initial exploration target of around 5–7 million tonnes averaging 1-4g/t gold with a substantial volume lying in the oxide zone less than 100 metres deep.
The company said "several other, less explored, gold mineralised lodes have also been identified by surface sampling and drilling within the Project. These lodes will be targeted by follow up drilling with the aim of delineating new deposits."
Aphrodite intends to commence a drilling program in May-June 2010, which will primarily target the substantial volume of unclassified mineralisation in the oxide zone with the objective of increasing potential open pit resources to JORC compliant standard.