Eagle Eye Metals (ASX: EYE) has positioned itself perfectly to be a major beneficiary from the current record high gold prices, with spot gold last night pushing through the US$1,440 an ounce technical barrier.
Eagle Eye has an option to acquire a 20% interest in the Aphrodite Gold Project near Kalgoorlie, which today upgraded the gold resource base to over the one million gold ounce milestone.
Aphrodite Gold (ASX: AQQ) is the operator of the project, but adding some spice to the equation is that Eagle Eye also owns 8.87% of the shares in Aphrodite Gold, providing further leverage into any upside.
Better still for Eagle Eye is the option is not exercisable until 30 June 2011, allowing the company sufficient time to strategically consider the next move.
Wayne Ryder, chairman, said “This substantial improvement of the resource is the result of a well designed and implemented work program, and represents a major advancement towards production.
“We will be watching with extreme interest further anticipated Aphrodite announcements in relation to progress at the project, leading up to decision time for us.”
The resource at the project consists of:
- 420,000 ounces averaging 1.85 grams per tonne (g/t) gold at a 0.5g/t cut off, above 150 metres; and
- 613,000 ounces averaging 6.35g/t at a 3.0g/t cut off, between 150 and 440 metres.
Adding to the potential for gold ounce boost, is the resource remains open at depth, which is already being tested with a 30,000 metre reverse circulation program already underway.