Sponsored

Citigold Corporation Ltd (ASX:CTO) gears up to commence gold production at Charters Towers, Australia

Summary

  • The Charters Towers Gold Project is a production-ready project with Inferred Mineral Resource of 14 Moz of gold.
  • Mine designing and engineering works are in full swing with an ultra-low-cost mining plan.
  • The project has all its mining and environmental permits in place and enjoys strong support from the local community and the government.
  • Citigold has already proved the commercial viability of the project through the production of 100,000 ounces of gold during the production testing phase.

Australian gold miner Citigold Corporation Ltd (ASX:CTO) continues to progress ahead on the path to high-grade gold production. The company shared a corporate presentation with the market to outline its prowess in operating one of the highest-grade gold mines of the country- the Charters Towers mine.

The Charters Towers Gold Project lies in the Tier 1 mining jurisdiction of Queensland with a strong track record of high-grade gold production. The Charters Towers region is one of the largest gold prolific regions in Australia with a recorded gold production of nearly 6.6 million ounces or 200 tonnes between the years 1872 and 1917. The historical data suggests gold was extracted at an average grade of 38g/t.

Location Map of the project (Image source: Company update, 8 April 2021)

Premium Gold Mining Project

The Charters Towers Gold Project boasts Inferred Mineral Resource of 14 Moz of gold. The geology of the project area is well understood, and utmost care has been taken while developing the mine. The datapoints from 1,550 significant intercepts have been analysed and align with the previous production data conforming the prospectivity of the deposit.

The geology team of Citigold has created a precise 3D structural model to develop an in-depth understanding of the deposit. The 3D model has well defined structural controls and paleo-fluid flow, which indicate an area with potential of high gold concentration on the tenement.

Major development on the project (Copyright © 2021 Kalkine Media Pty Ltd. Data source: Company update, 8 April 2021)

High-grade gold mineralisation of the project

Citigold has drilled 3,200 diamond holes aggregating over 358 kms at the project. The intercept results indicate a high-grade narrow vein orogenic gold deposit. The diamond drill core demonstrates the continuity of the mineralisation in the lateral direction as well as down dip from the historical production.

Underground gold area (Image Source: ASX Update, 10 February 2021)

The pink area in the above figure shows the area which will be mined, while brown represents the historical mining area. The smaller coloured spheres in the figure are the diamond drilling intercept points.

Good read: How Citigold Corporation (ASX:CTO) plans to cash in on gold bull run?

Ready for Production

To make the project production-ready and save critical time, Citigold has already secured mining and environmental permits and licences. CTO has obtained Mining Leases (MLs) for the areas that will see mining in the near future. Mineral Development Licences are also obtained for areas around the main mining area, in case significant mineralisation is discovered.

Exploration Permits (EPMs) are secured for long term exploration activities on the goldfield. Citigold has acquired production and exploration permits for an area of 175 km2 on the project.

Citigold’s Charters Towers Gold Project enjoys the local support of the community and government. Also, the Company has concluded the community consultation part of the project.

Project Status (Copyright © 2021 Kalkine Media Pty Ltd. Data source: Company update, 8 April 2021)

In the last 52 weeks, the shares of CTO have given an excellent return of over 200% to its valued shareholders. CTO closed at $0.013 a share with a market capitalization of $35.36 million on 14 April 2021.

All financial information pertains to Australian Dollars unless stated otherwise.

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK