Citigold Corporation is an Australian gold mining company producing gold from Australia's richest goldfield at Charters Towers in north eastern Australia. The Company is an ASX/S&P 300 index company with plans to quadruple its size and valuation over the next few years.

Citigold is a growth company that has a growing cash flow from expanding gold mining operations and the huge capital growth upside of an exploration company seeking to define up to 50 million ounces of gold.

The Company has invested over $120 million to develop the goldfield, has commenced commercially extracting gold and plans to build up gold production from its underground mines in stages towards 300,000 ozs annually by 2012.

Citigold hold's 100% of the bonanza grade Charters Towers goldfield where a Mineral Resource of 10,000,000 ounces of gold (331 tonnes) at an average grade of 14 g/t gold, to strict JORC reporting standards, has been defined and documented.

This gold deposit is currently the largest high grade gold resource in Australia.

Focus is on Adding Shareholder Value

Unlocking the enormous value of the gold assets at Charters Towers for the benefit of shareholders is a key focus of our strategic plan. We have assembled a core team of leading mining professionals who are technically and practically skilled in our type of geology and mining operations. We are striving to be the best at what we do.

The Company has commenced an extensive drilling program with several diamond core drill rigs on the major east-west multi kilometre long parallel reef lines with the goal of establishing that the field is a 50 million ounce gold giant. All the indicators are there but we have to do the work to prove it.

Our mission is to efficiently expand gold production targeting a 50% cash surplus on gold revenues through mechanised mining of the high grade reefs. Citigold's Charters Towers deposits will be developed through several inter-related and adjacent mines feeding a common gold extraction plant. The Charters Towers Warrior mine is the first operation now producing gold.

Citigold's has an exploration investment in the focused listed pure mineral explorer Gateway Mining Limited (ASX Code 'GML') through a 15% passive shareholding. This gives raw exploration exposure with the associated upside if Gateway is successful at one or more of its three main projects in Western Australia and New South Wales.

Citigold listed on the Australian Securities Exchange (ASX) in 1993 and, as a part of its international strategy, listed on the NASDAQ Dubai (DIFX) in 2007. Citigold also has an ADR program in the U.S.A. through the Bank of New York Mellon.

Your Company is emerging as a standout performer with enormous upside ahead. The relationship between Citigold and its shareholders aims to ensure that the main benefits from this success will be enjoyed by its current and future shareholders.

Location

Citigold's Charters Towers goldfield is located underneath and surrounding the City of Charters Towers (8,500 population) in north eastern Queensland, Australia. The Charters Towers mines are situated 128 kilometres southwest of the major coastal City of Townsville (170,000 population) and are on the main Flinders Highway leading west from Townsville to the inland mining city of Mt. Isa. Townsville is a major road, rail, sea and air transport terminus and is located approximately 1,100 kilometres north of Brisbane and 2,000 kilometres north of Sydney.

Golden Pedigree

Citigold's Charters Towers gold deposit is Australia's largest bonanza grade gold deposit with mineral Resources of 10 million ounces of gold.

Our Charters Towers goldfield is the home of Australia’s richest goldfield having produced 6,600,000 ounces (205 tonnes) of gold over a 46 year period with an incredible average ore grade of 38 grams (1.25 ounces) per tonne. This gold was mainly produced from one of the five major goldfield structures – the other four are mainly unexplored. Citigolds Charters Towers gold deposit is Australia’s largest bonanza grade gold deposit with current mineral resources of 10 million ounces of gold. Since 2004 for the first time in history one company, Citigold Corporation, controls 100% of this distinguished deep sourced goldfield. Only a small part of the gold deposit has been worked leaving the rest for Citigold. The historical mines were very profitable paying an estimated $900 million in dividends to their shareholders, in today’s dollars. Our current high grade gold mine operations proves there are many rich reefs waiting to be mined.

Underground Mining

Mining operations at Charters Towers are by underground mining methods. The gold deposits are hosted in very strong granodiorite rock that has a compressive strength of 150m.p.a or five times stronger than commercial grade concrete. This makes for good mechanised mining conditions.

The gold deposits are accessed by two Declines (downward sloping tunnels). Mining method is modern drill and blast technique. The underground tunnel system is complex and requires careful design and engineering based on the geological mine design setting out where the valuable ore is located.

The technical mining method is mechanised (long-hole open stoping on 15 metre sub-levels, trackless diesel haulage) which allows for low-cost operations. Operating costs target A$350 per ounce and the current Australian gold price around A$1000 ounce produces strong margins.

Gold bearing ore is then hauled from the surface of the mine by truck on the approved City public heavy haulage road route for 12 kilometres to the gold extraction plant.

Gold Extraction

The gold extraction plant is located away from the populated areas of the City about 10 kilometres south west of the City centre along the Gregory Developmental Road (Clermont Highway).

The plant is a conventional CIL (Carbon In Leach) plant with a capacity to process about 340,000 tonnes per year of gold bearing rock. There is also a gravity gold recovery circuit within the overall plant design to recover the coarse gold particles which allows high grade ore to be processed through the CIL plant.

The plants gold production capacity will be expanded by the addition of a larger automated gravity gold circuit that will collect the high grade gold. With the planned future pre-concentration of ore underground as a part of the mining process the plant feedgrade could increase to 20g/t and therefore could produce 250,000 ounces with the current crushing, milling and leaching circuit.

The plant outputs gold 'dore' bars (containing about 50% gold and 30% silver) which are then shipped by secure transport to a gold bullion refiner where the gold and silver are refined and the mine is paid for these valuable metals.

Mine Management

Citigold's management focus is to dramatically increase shareholder value by strategically developing highly profitable and sustainable gold production from the enormously rich mining lands of Charters Towers.

Mining is conducted principally by owner staffed and operated plant and equipment. Exploration drilling is conducted by contractors. As the project expands it is expected that the number of contractors will increase. The Company currently has about 110 personnel at Charters Towers.

Citigold operates at two sites - the underground mine and the gold extraction plant. Administration is located at the gold extraction plant. As the other underground mines are opened up on the adjacent parallel reefs (ie Sunburst, Brilliant, etc) they will all feed the ore to the one central gold extraction plant.

Mineral Tenements

Citigold's granted mineral tenements cover an extensive area of over 360 square kilometers (36,000 hectares) in the heart of the rich Charters Towers goldfield.

These tenements comprise (a) Mining Leases where we are operating and expanding the gold mines, including the Warrior area; (b) Mineral Development Licenses that cover the direct extensions to the mining areas in readiness for future conversion into Mining Leases prior to gold production, and (c) Exploration Permits Minerals that we are drilling and exploring to expand the gold deposits.

The Mining Leases grant to Citigold exclusive mining rights to the valuable metals. Gold and silver are the principal valuable metals mined by Citigold and we pay a royalty to the Queensland State Government of 2.7% of the sale price of gold and silver extracted.

The core of the mineral tenements with an area of about 100 square kilometres from the heart of the goldfield and contain the five major east-west Reef Structures. Reef Structure 1 comprises the majority of the historical gold production from the 10 major mines including the Brilliant, Day Dawn and Queen. Citigold's operational Charters Towers Warrior mine is located on Reef Structure 5 within granted Mining Leases situated 5km south east of the City centre on Bluff Road.

Board of Directors

Mr John J Foley - Non Executive Chairman
BD, LLB, BL (Dublin)
         

Mr Mark J Lynch - Managing Director and Chief Executive Officer
FAICD
         

Terence Willsteed - Non Executive Director
BE(Min)Hons, BA, FAusIMM, MMICA, MSME
         

Matthew Martin - Chief Financial Officer & Company Secretary
CA, B.Com
         

Management Team

Mr Mark J Lynch - Managing Director and Chief Executive Officer
FAICD
         

Christopher Towsey - Chief Operating Officer
BSc (Hons), MSc, Dip Ed, FAusIMM, CP, MMICA, MAIG, MSME, MAICD
         

Matthew Martin - Chief Financial Officer & Company Secretary
CA, B.Com
         

Garry Foord - General Manager Mining
AD (Mining Eng) Dip Geoscience MAIMM METM, JP
         

Jim Morrison - Exploration Manager
MSc, DIC, FRMIT, FAusIMM (CP), MAIG, FAAG

Top 5 Shareholders    
1. Aurora Investments Ltd
2. Citicorp Nominees Pty Ltd.
3. ANZ Nominees Limited
4. J P Morgan Nominees Australia Limited
5. JFO Investments Labuan Ltd

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Share Capital

(Updated February 2010)