Citigold (ASX: CTO) charting course to unlock full potential of Charters Towers Gold Project

Highlights

• Citigold Corporation is focused on the Gold Mine Restart initiative for the Charters Towers Gold Project.
• The company has invested over AU$300 million in acquiring and developing the deposit.
• During the test mining phase, it produced 100,000 ounces of gold.
• Total operating cost for gold production is estimated to be below AU$600 per ounce at full capacity.
• The company is in discussions at various stages with parties interested in joining hands in the project development.

Citigold Corporation Limited (ASX: CTO) is a gold development and exploration company aiming to become an ultra-low-cost gold producer. The ASX-listed company operates the Charters Towers, a high-grade goldfield in NE Queensland, Australia. The Australian company targets an annual gold production of 300,000 ounces by leveraging state-of-the-art technologies and operational efficiencies.

The company's primary objective revolves around the Gold Mine Restart initiative for its Charters Towers Gold Project. In line with its objective, CTO is advancing endeavours such as extensive regional exploration programs, mine design, and engineering.

Charters Towers – a ‘world-class’ gold mine

The company highlights the Charters Towers gold deposit as one of the largest high-grade pure gold deposits in Australia. Throughout its history, it has been Australia's foremost high-grade gold producer, delivering 6,600,000 ounces of gold ore with an average grade of 38 grams per tonne.

Mineral Resources and Ore Reserves are as shown the image below:

Image source: company update

During the gold production test mining phase, CTO successfully produced 100,000 ounces of gold, providing invaluable insights for future operational planning. Based on the estimated gold resources, the mine is expected to have a lifespan of over 30 years. Moreover, according to the Gold Technical Report, the total operating cost for gold production is estimated to be below AU$600 per ounce at full production capacity.

The firm has already invested more than AU$300 million in acquiring this deposit, constructing its infrastructure and conducting test mining.

Currently, the company is seeking to raise capital funding required to expand its Charters Towers Gold Project. It is in discussions at various stages with parties interested in joining hands in the project development.

Recent work conducted at project

Recently, the focus was on refining mine planning efforts, particularly in assessing the alignment of the regional mine plan with the surface access needs for essential services. Concurrently, a comprehensive review of the long-term mine plan was undertaken to optimise the deployment of major mining equipment across underground work areas.

To optimise central mine design and engineering, various activities are being undertaken including planning, scheduling, and ongoing optimisation reviews.

During six months ended 31 December 2023 (1HFY24), the company continued to refine mine planning activities, engineering, designs, and strategies for the Central Mine. The first area planned to be reopened is the main ‘Central’ mining underground.

Moreover, during the period, the company engaged in rock chip sampling the south and southeast areas of Charters Towers. In the southern area, 167 samples were collected, out of which 21 samples showed detectable gold content, with four being anomalous. Notably, all samples containing detectable gold were situated within or near demagnetised zones of the Towers Hill Granite, previously identified as uniform granite.

In the southeast area, assay results were obtained for 62 rock chip samples, following up on a previous rock chip result of 10.15 g/t Au. Among these samples, four were found to be anomalous.

The company is progressing with its thorough exploration program, focusing on priority areas located through both current and past exploration initiatives. Additional sampling is scheduled to investigate previous rock chip anomalies identified in sampling conducted north of the mining leases within the Imperial mining area.

Citigold Corporation's unwavering dedication to restarting the Charters Towers Gold Project highlights its determination to become an ultra-low-cost gold producer. With successful test mining, and continuous efforts to optimise operations, the company is gearing up to realize the full potential of its world-class gold deposit. Furthermore, the company is actively engaging in strategic discussions and advancing its exploration programs.

CTO shares last traded at AU$0.005 apiece on 19 April 2024.