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| Citigold's Low Cost Advantage. |
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Citigold Corporation has major infrastructure and operating cost advantages with its Charters Towers operations forward cost estimates indicate we could become
internationally competitive low cost gold producer. |
 | Citigold's cost advantages include - |
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| * | Close to the major city of Charters Towers with 8,500 people. |
| * | Low cost high voltage State grid electricity available to the mine. |
| * | Recycled self-sufficient water supply to the mine and extraction plant from dewatering of old mines. |
| * | Existing office accommodation and housing in place. |
| * | Existing community infrastructure including schools, supermarkets, hospitals and recreation all in place. We don't have to build a fly-in-fly-out community. |
| * | Existing engineering, mechanical, construction and numerous other businesses operate in the community
able to supply the mine with its needs. |
| * | Trained workforce at hand. |
| * | Workforce can live at Charters Towers with their families. | |
| Being a low cost gold producer can mean greater profits. |
| Being a low cost producer will assist funding long term growth from internal sources. |
| Citigold's gold production cash costs are expected to be under A$350 per ounce at the full production of 300,000 ounces per year. |
| Expanded gold production at the Charters Towers Warrior mine to 100,000 ounces should see costs reduce towards A$350 per ounce due to increased efficiencies from economies of scale. |
| Costs are usually reported on a 'cost per ounce' basis as a common yardstick. These costs are calculated by multiplying the costs to mine and process a tonne of gold bearing rock by the grams per tonne of gold recovered relative to an ounce. |
| Costs have been estimated by
experienced staff with expertise at Charters Towers based on actual costs and
future trends for technology, raw materials and labour. |
(Page Updated January 2010)
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