Citigold Corporation - Environment

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Environment

Environmental Policy

Citigold Corporation has a formal environmental policy which is supported by the staff and board of directors.

The Policy approved by Citigold Corporation and signed off on by the Managing Director, Mr Mark Lynch, is –

“Citigold Corporation Limited explores for and produces gold profitably and sustainably without harming its employees, the community or the environment."

Reporting of environmental monitoring and compliance assessment continues. Rehabilitation and routine groundwater analysis of mining areas is well advanced, in compliance with approved environmental plans.

Citigold Corporation has established a sound background in environmental management and community relations. The Department of Mines & Energy has recognised the efforts of Citigold at Charters Towers -

"Your proactive attitude… is commendable. This attitude has been evident throughout the past 10 months in the progressive rehabilitation, community consultation programs and maintained communications with this office. In relation to environmental management you should be congratulated for a consistent approach that has led to significant improvement at your sites." - 16 December, 1999.

"As you may be aware, I have monitored the results of your public consultation and the noise minimisation measures for night operations at the Brilliant shaft. … It is very clear that the care and consideration was much welcomed by the surrounding residents. Your company's staff and contractors have earned their respect and this continuing public support will prove to be an important factor in the future success of your project." - 26 March, 1997.

Performance

There have been no reportable environmental incidents since 2000.

Environmental Management Overview Strategy (EMOS)

A Environmental Management Overview Strategy (EMOS) for the Charters Towers Gold Project has been approved by the Queensland Government department the Environmental Protection Agency (EPA).

In addition a Plan of Operations, in compliance with the EMOS, has also been approved by the EPA. These operating documents are in compliance with Queensland’s stringent Environmental Protection Act and Regulations. These combined environmental operating documents are a major achievement for the management team at Charters Towers.

Citigold has always endorsed Queensland’s high environmental standards. These new permits will streamline environmental operations and compliance for the several mines to be developed.

Citigold operates in a unique and rare mining environment with its mining operations located directly under and around a City of 8,500 people.

Local Community Supports Citigold’s Mines

The Company supports local communities with personnel, labour and donations to a wide range of community activities, including local rodeo associations and entrants, All Soul’s School, Lions Club, St Johns Ambulance, National Aborigines and Islanders Day Observance Committee week parade, Country Music Festival, National Trust, Outback Celebration and the Combined Mines Charity Ball. As operations expand Citigold will continue to support and work in harmony with the local community.

Today there are two main sectors of environmental considerations – the natural environment and the people environment. Permitting to mine under a City with over 3,000 landholders and 8,500 residents presents a unique challenge. Much is to be learned from the success of the Citigold's Charters Towers operations and the need to inform people and treat each person as an important stakeholder.

When Citigold conducted its initial exploration work of the mineral tenements under Charters Towers, as part of its huge gold project, none of nearly 8,500 residents of the town objected.

Despite the company’s plan to drill and blast beneath the town, the only comment directed towards Citigold by a resident was a positive one, aimed at applauding the company’s ongoing good work. Earning the respect and trust of the community was an important part of ensuring the project's long term success.

After the successful exploration beneath the town in accordance with regulatory requirements, Citigold proceeded with the finalisation of Mining Leases and environmental permits. These were granted by the Department of Mines and Energy (DME) and the Environmental Protection Authority (EPA).

Citigold acquired the last external mineral tenements in the Charters Towers area in early 2004, when it took control of Great Mines Limited. This enabled the company to gain 100 per cent ownership of the goldfield.

Extensive Mineral Tenements

The lengthy and complex process of negotiating, pegging and acquiring all the tenements initially began in 1969. Citigold’s late founder, Mr Jim Lynch, began the process by buying a small group of tenements from their original owners and so began the complex process of amalgamation.

The 35 year period it took to eventually obtain all the tenements, that now belong to Citigold, required dedication and the expenditure of substantial sums of money. This experience, however, has given the company a detailed understanding of tenement management in Queensland.

All Citigold’s mineral tenements are on the bonanza gold grade Charters Towers goldfield, which has the potential to build the company into a giant. The 10 million ounce gold resource confirms the enormous value of the company’s tenements.

Environmental Sustainability

Citigold considers environmental sustainability as an integral component of its operational responsibilities and contributes to the local environment and community in numerous ways. In addition to regular environmental rehabilitation, recovery of surplus granite rock is contributed to the creation of a new sports field and regular road construction works.

Water is systematically recycled from all underground mine water supplies, and the mine is largely independent of community water supplies. Energy consumption is monitored and minimised to limit greenhouse gas emissions. Electricity is used in preference to petrol or diesel-powered equipment where possible, as this centralises greenhouse gas emissions at the State grid power station, making control and reductions of emissions easier.

Citigold recognises the importance of community - industry relations in all of its operations and daily activities. In accordance with a comprehensive system of regulatory requirements, Citigold's exploration work under the City of Charters Towers, has earned wide respect and support from the local community's leaders as well as its residents. An ongoing co-operative relationship has been established and Citigold will continue to promote open communication with and to work alongside local members of the community in expanding the gold deposits.

Simultaneous to this is Citigold's commitment to upholding its sustainability practices for the community and its future. This positive stance, the surrounding community and the infrastructure of Charters Towers is an integral component of Citigold Corporation's mining operations and ultimately enables the maintenance and progression of a safe, profitable as well as successful operation.

(Page updated August 2008)