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- The Charters Towers Gold Project hosts 14 million ozs of gold resources with the advantage of low-cost extraction.
- Churning out 100,000ozs of gold during test mining operation has bolstered the Company’s confidence and inspired it to aim to be a 300,000 plus oz pa producer.
- The Charters Towers Gold Project is ready to commercialise production.
The recent gold rally has caught the eye of the investors and has reinforced their confidence in the safe haven asset. The gold miners benefitted significantly from the gold price rally during which the yellow metal crossed US$2,000 mark for the first time in history. The gold bull run amid the gloomy economic conditions globally allowed the investors to earn multi-fold returns on their investments in the gold mining companies.
As per the Resources and Energy Quarterly (December 2020 edition), Australia plans to emerge as the world’s largest gold producer in 2021. The burgeoning confidence of the investors in gold needs to be complemented by robust growth in gold supply in the upcoming years.
On that note, let us discuss an ASX-listed gold miner that owns one of the largest high-grade gold deposits in Australia.
Citigold Aiming to be Ultra-Low-Cost Gold Producer
Citigold Corporation (ASX:CTO) is an upcoming gold miner which continues to push forward on the Charters Towers Gold Project in north-eastern Queensland of Australia. In fact, Charters Towers is Australia’s largest major high-grade gold deposit.
Copyright © 2021 Kalkine Media Pty Ltd. (Data Source: Company Website)
The Company aims to establish itself as a low-cost gold producer, with the aim of being a 300,000 oz a year producer in the upcoming 5 years by utilising modern technologies to create significant returns for shareholders.
Production Ready Gold Project with 14 Million oz gold resource
Citigold’s Charters Towers Gold Project stretches over an area of 175 sq kms around the Charters Towers Goldfield. The tenement area includes the Central and Warrior areas. The Charters Towers goldfield holds the reputation of producing more than 6.6 million ozs of gold during the period 1872 to 1917 with an average grade of 38g/t. The firm has already produced over 100,000 ounces of gold during the test mining at the project.
Project location map (Image Source: ASX Update, 10 February 2021)
During the December 2020 quarter, Citigold upgraded its resource base by 27%. The Company reported inferred resources of 32 Mt at 14g/t gold with a cut-off grade of 3 g/t. The probable ore reserve are 2.5Mt at 7.7 g/t Au with a cut-off grade of 4g/t.
Informative Read: Why Should Every Investor Closely Track Gold Price?
The Charters Towers deposit will be mined using underground mining methods. The mining operations will be focused on the Central mine area. Citigold has undertaken significant development work at the Central mine area which includes the construction of a 238 metre-deep and 1,600 metres long main access tunnel with two ventilation shafts.
Production ready Central Mine site (Image Source: ASX Update, 10 February 2021)
Above picture shows Citigold’s Production Ready Central mine site with established main access tunnel, buildings, core yard, road, power and water.
Citigold traded at A$0.012 a share on 3rd March 2021 (1:44 PM AEDT) with a market capitalisation of A$35.36 million.
Note: All financial information pertain to Australian Dollars unless stated otherwise.