Some investors shun gold stocks: Aphrodite

The euro zone debt crisis is deterring some investors from funding small companies in the gold sector, says gold project developer Aphrodite Gold Ltd.

Aphrodite, which has a market capitalisation of around $8 million, is seeking to progress the exploration, appraisal and development activities on its Aphrodite gold project outside of Kalgoorlie in Western Australia.

"The need to raise money is obvious. We have escalated our work program dramatically on the project," Aphrodite Gold financial director Wayne Rider told reporters on Friday.

"Share price is the only thing working against us. I do believe that is a part of the worldwide economic woes, especially in Europe.

"People now really want to hold hard fiscal assets.

"If they're believers in gold, they want gold bars, not shares in Aphrodite, BHP or anything."

Aphrodite on Thursday released results of an independent scoping study on its Aphrodite Gold Project, which the company said showed that the project was economically viable.

Further studies are needed to more precisely ascertain the costs of the project and the size of the resource.

Mr Rider said he was confident of the project's future.

Aphrodite is seeking to develop a combined open pit and underground mining operation over a project life of nine years.

Gold production over the life of the project is estimated at 550,000 ounces.

"We're not the ugly wallflower at the dance," Mr Rider said.

Shares in Aphrodite were 0.1 cents lower at 6.1 cents on Friday.

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