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Stellar Show in March Quarter Helps Citigold’s (ASX:CTO) Shares Rise Sharply

Summary

  • Citigold holds one of Australia’s largest high-grade pure gold deposits with 14 million ounces of inferred mineral resources.
  • Extensive exploration work on the tenement area indicates potential extension in mineralisation on the project.
  • Mine design and engineering works on the Central Mine site is in full swing and inches towards mining at the project.
  • CTO to commence exploration campaign on the Charters Towers tenement with a central objective to increase reserve and resources on the project.

The ASX-listed gold miner Citigold Corporation (ASX:CTO) announced its quarterly report for the period ending 31 March 2021. The main highlight for the quarter’s operational activities was the selection of the site for the upcoming processing plant. To achieve its ‘ultra-low-cost mining’ goal, the processing plant will play a pivotal role in it.

Source: Citigold Corporation

Recent update: Citigold Corporation’s (ASX:CTO) placement funds to fast-track Charters Towers Gold Project

Citigold is planning an ultra-modern and environment-friendly processing plant in the close vicinity of the Central Mine. The basic design features will include less footprint on the ground. It will also be energy-efficient with a mix of renewable energy and will have efficient design which uses less water. The Company’s personnel visited the planned site, and the initial review indicates the site is suitable for a processing plant.

The proposed processing plant design will include the upgrading of ore process to remove the bulk of the granite dilution. Granite infusion is normal during the underground-mining process.

Charter Towers Gold Project schematic (Image source: Company update, 27 April 2021)

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

Central Mine Site

The Central Mine is the centre for most of the mining-related operations of the Company. Citigold has put in place all required infrastructure, including the entrance and tunnels for underground mining.

Mining consultants are reviewing all available data for the mine to update the mine design and optimise the mining operations. The Company will use a unique mining approach – ‘keyhole mining’ on the Central Mine which will include making small excavations and extract the ore while minimising dilution leading to lesser waste.

Citigold is planning to run the mining operations on renewable energy. The ‘greener’ approach will have initial up-front capital costs but will prove cost effective in the long run. The Company is committed in keeping the entire mining operation environmentally friendly and more and more green.

Satellite image of Central Mine site (Image source: Company update, 27 April 2021)

Good read: A snapshot of Citigold’s exploration program at Charters Towers, QLD, Australia

How much gold does Charters Towers Gold Project have?

Mineral resource and reserves summary (Data source: Company update, 27 April 2021)

Citigold will commence the exploration season for 2021 as the wet season is over now. The exploration program will involve geological traverses towards the upstream side, picking up rock-chip outcrops and float samples. This will also help to identify potential sources of anomalies.

The previous sampling program of 2020 indicates the potential for significant extension in mineralisation towards the north of the Charters Towers. One of the samples has shown the presence of base metal and silver and points at a possible different style of mineralisation on the project area.

Good read: Citigold Corporation Limited (ASX:CTO) in sweet spot to leverage the gold market

Share Price

The stocks of CTO jumped 8.33% on 26 April 2021 on the back of an excellent quarter. The shares of the company closed at A$0.013 on 30 April 2021 with a market capitalisation of A$36.14 million.

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