Aphrodite Gold : AND POSEIDON TO JOIN FORCES TO EVALUATE GOLD PRODUCTION

Download the full report here (PDF format): Aphrodite and Poseidon to join forces to evaluate Gold Production

10 July 2017
The Company Announcements Office
Australian Securities Exchange Limited

Highlights

• Aphrodite Gold Ltd and Poseidon Nickel Ltd enter into an MOU to complete due diligence for the processing of Aphrodite's gold resource at the Poseidon Black Swan Processing Facility (BSPF)
• A 50:50 joint ownership structure would be established to mine and process the resource
• Black Swan Process Facility has capacity to process over 2Mtpa
• Aphrodite recently released a mineral resource estimate of 1.3Moz including an Open Pit resource of 10.2Mt @ 1.8g/t for 598,000 ounces and comprehensive metallurgical results which confirmed gravity gold recovery of 30% and overall recovery of 92% to gold concentrate. Refer ASX announcement 27 June 2017.
• Processing ore at the BSPF would achieve significant capital efficiency.
• Delivery of a successful outcome under the MOU would transition Aphrodite from an explorer to a producer quickly and at far less cost.
• Joint due diligence will consider progressing a Definitive Feasibility Study (DFS) to establish an open pit operation at Aphrodite and producing a gold concentrate at the BSPF for sale to a third party.
• Forecast operating cost to transport ore and produce concentrate at BSPF estimated at $8 and $23 per tonne respectively when combined less than the processing costs forecast in Aphrodite's PFS
• The SPV owned BSPF - in addition to processing the Aphrodite resource - would also have the ability and availability to process third party gold resources from within WA's Eastern Goldfields.

To read more, download the full report here (PDF format): Aphrodite and Poseidon to join forces to evaluate Gold Production