Proactiveinvestors recommends
Additional Information
Market: ASX
Sector: General Mining - Gold
EPIC: CTO
Latest Price: A$0.05  (-1.96% Descending)
52-week High: A$0.09
52-week Low: A$0.05
Market Cap: A$55.25M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Citigold Corporation
www.citigold.com

Citigold Corporation is an Australian gold mining company producing from Australia's highest grade gold deposit at Charters Towers in north eastern Australia.

Full Citigold Corporation profile here
Is CTO a Buy, Sell or Hold?Get your FREE analysis of CTO
Pdf

Citigold gold production up 41% in Q3, on track to hit FY production target

27th Oct 2009, 1:03 pm

Citigold Corporation (ASX; NASDAQ Dubai: CTO, FSE: CHP) said it was on track to reach the full year production target of 25,000 oz (ounces) after producing 2,609 oz of gold in Q3, which was half of the target but still represented a 41% increase over the previous quarter.


Average gold recovery for the quarter was at 97%, while the mill head grade was below average due to milling of low grade stockpiled material. Costs per ounce were slightly higher at A$542/oz, making for a surplus margin of A$607/oz.


The consolidated net assets increased to A$224 million, which Citigold said demonstrated the “strengthening feasibility” of its flagship Charters Towers project.


The Warrior mining area on the Reef structure 5, which is the first commercial production area of the overall Charters Towers 10Moz (million ounce) deposit, contains an inferred resource of 1.9 million tonnes at 14 g/t (grammes per tonne) of gold for a total 840,000 oz of gold. Assays from the face sampling in the W19 ore panel are showing average drive width grades along strike for the stope of 8.6 g/t with the highest spot grade exceeding 1,000 g/r gold.


Citigold plans to up its annual production level to 85,000 oz in the coming year and has further production targets of 100,000 and 300,000 oz per year.


Exploration has also progressed with a total 7,597 metres of core drilled and 41 holes completed, which was slightly below from the previous quarter due to the diverting of rigs to re-open and clean out previous holes to implement the down hole geophysics programme.


Besides the operational achievements, the company has also been able to close the Gateway takeover during the quarter, increasing its stake to 46% to become the dominant shareholder in the company, which will continue to operate as an independent ASX listed exploration business. However, Citigold reaffirmed its focus on developing the Charters Tower gold deposit, asserting the acquisition would “in no way detract it” from its flagship project.


In order to fund the development of Charters Towers and further grow gold production, the company raised A$5.872 million through a placement back in October.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.