Citigold Corporation Ltd (Citigold) is an Australian ASX ‘CTO’ listed gold development company located in northern Australia in Charters Towers. Our aim is to be a 300,000 ounces per annum ultra-low-cost gold producer, using state of the art technologies and efficiencies, all with the aim of returning substantial profits to shareholders in harmony with the local environment.
Indicatively the Company has invested around $200 million into its gold mine, and may generally be represented as circa $50 million in each of the following:
- acquire, explore, maintain mineral rights and titles;
- drilling, exploration assessment to quantify the gold deposits size;
- test mining several areas to understand the mining conditions, and design an innovative ultra-low-cost mining method; and
- funding costs, innovation, overheads and corporate existence, etc.
Our go forward plan is backed by technical research, analysis, and financial evaluation.
The mining leadership team understands our underground mining conditions. The uneven gold distribution is a challenge, but the historic average grades of 38 g/t prove what this gold deposit is. The mine design is based on actual mining experience.
The resulting ultra-low-cost mining assessment is supported by technical research, and mining based financial evaluation. We aim to restart this world class gold mine, possibly Australia’s largest high-grade gold deposit and currently seeking a funding partner.
“Gold is good, 100% of final product value is added in Australia”.
The Company has been a leader in minimalist surface disturbance for its mining operations, progressive rehabilitation, and community beneficial post mining land use. This will continue with the restart of the mine and future expansions.
The foundation of our efforts was the original Environmental Management Overview Strategy. This has further evolved over recent years into a clear whole of mine:
‘ESG Integrated Business Model’.
ESG Business Model
This approach to our mine, our community and governance is holistic.
The business model seeks to mirror a modern-day, agile tech start up. The Corporate and Operational teams operate in unity. Company personnel and external contractors operate as the one unified ‘team’. Sharing the same goals, where the best ideas are owned by all.
Environmental Impact Statement
The original ‘Environmental Impact Statement’ for the project was carried out commercially by ‘Trop-Ecol’, an affiliation of senior personnel of ‘James Cook University of North Queensland’. The team included professors and researchers, with analysis carried out by the University. This was a unique approach for a mining company. The EIS created a very honest and robust foundation for our operations.
Renewables, and Zero Waste
A goal is renewables powered, remove diesel from the mine, and generate zero waste by repurposing all materials used or extracted to have a new beneficial life. The leader of the project will have exceptional experience and skills across many industries, not just mining. Driven by the importance of the health and safety of our workforce the Company has a stated intention, to develop and progress to autonomous mining systems, especially in hazardous areas. People who join our team will be the best at what they do. We will continue to operate in harmony with our community.
Community Development Programs
As a part of the Company’s Public Interest and Benefits Statement, we have articulated in detail five ‘Community Fund, Scholarship and Grants Programs’. These cover Education, Business Development, Innovation & Science, Indigenous Smart Training Centre, and Community Development. Collectively these programs will grow over time and will to be implemented as mining operations expand.
With a large gold production goal, restarting the mine is the number one focus. We aim to extract the gold from the rock without cyanide or a tailings dam. Major surface and underground infrastructure have been built, including the main 1,400-metre-long access tunnel to 200 metres deep. The mine is self-sufficient in water by recycling existing good quality 7pH mine water. Crustal rocks are granite, ideal for mechanised/robotic mining. Technical studies indicate gold production operating costs under A$600/oz.
LINK: Gold Technical Report.
LINK: Gold Mine Valuation.
Future Gold Production
Planning is continuing for the gold mine to commence gold production and increasing towards our mission goal. Trials indicate that by using geophysics and drilling, mining resources may be upgraded to reserves overtime.
Health and Safety
“Citigold Corporation explores and produces gold profitably and sustainably without harming its employees, the community or the environment.”
The leadership team is committed to practicing and upholding high standards of occupational health, safety, and environment (OHS&E) standards. These are an integral component of efficient operations.
‘Environmental harmonisation’ with the local community is a foundation of the mine since its inception. An ‘Environmental Management Overview Strategy’, accepted by the Queensland Government, is the foundation for a symbiotic relationship that benefits the community and the mine.
Citigold has a long history of contributing to the recognition of indigenous achievements. Young Australian ‘Jupiter’ in 1871, discovered gold being part of the prospecting team, starting the Charters Towers gold rush.
The goldfield centred on and surrounds the town of Charters Towers (8,500 population) in north-eastern Queensland, Australia. Charters Towers is 128 kilometres from the major coastal City of Townsville, having major port, rail, road, and air connections.
We are restarting a world class mine. Citigold’s Charters Towers gold deposit is Australia’s largest high-grade major gold deposit. Historically it is Australia’s largest high-grade gold producer of 6,600,000 ounces of gold ore averaging 38g/t (near 2 ounces per tone of ore). The historical mines were very profitable paying an estimated one billion dollars in dividends to their shareholders, in today’s dollars.
In consultation with project designers, an innovative mining system for an efficient ‘keyhole mining’ approach. This aims to reduce the quantity of rock to be mined and increase the quality of gold ore brought to the surface for processing. This methodology produces efficiencies applicable to the geometry of our ore system.
LINK: ‘Gold Technical Report 2020’
LINK: Gold Mine Valuation.
Exploration and production tenure covers an extensive 17,500 hectares. The plan is to increase the substantial gold inventory further. A royalty of 5% is paid to the Government on gold and silver produced.
The Northern Miner Newspaper
The Northern Miner was first established in 1872 when Charters Towers was already an important goldfield and continued for 148 years, until in 2020 when it was merged into the regional “Townsville Bulletin” newspaper.
With the city of Charters Towers nearby, the workforce can also live nearby with their families. Charters Towers is a well-established education centre schooling from pre-school to year 12, with near 2,000 students in classrooms plus another over 2,300 through distance education learning.
Our aim is to be a 300,000 plus ounces per annum ultra-low cost gold producer using state of the art technologies and efficiencies, all with the aim of returning substantial profits to shareholders in harmony with the local environment
Citigold Corporation is an Australian gold explorer and developer with a clear strategic plan and mission to grow to a world class gold company by:
- Start mining the existing 620,000 gold reserve,
- Upgrade the 14-million-ounce gold resource by mining,
- Grow gold production to 300,000 ounces per year
Citigold has produced 100,000 ounces of gold during the gold production test mining phase. The knowledge gained is invaluable for planning future operations. The estimate of gold resources indicates a mine life of >30 years.
The goldfield is a proven giant high-grade ‘orogenic’ lode gold system, producing over 205 tonnes of gold prior to 1920 at an average ore grade of 38g/t ore.
The capital invested by Citigold of A$200 million was to acquire and maintain mineral rights, build infrastructure, access tunnels & test mining to over 200 metres deep.
The Gold Technical Report estimates the total operating cost to produce gold to be under A$600 per ounce of gold at full production.
Our goal is to add maximum value to shareholders through efficient mining that generates profits that may be distributed by paying dividends.
Corporate has an extensive diversity and depth of skills including management leadership, industry technical skills, mine management, financial, governance, legal, capital raising, innovation, risk management, environmental, native title, community, ASX and broad regulatory and government policy directly applicable to the advancement of our business.
The Consultants we have engaged with are leaders in their fields, often with very specialist knowledge of our gold deposit, and its specific challenges. This firsthand experience will ensure all the “constraints” are designed out, as the mine moves to be an important gold producer, and an efficient ultra-low-cost miner.
Corporate leadership has extensive diversity and depth of skills including management leadership, industry technical skills, mine management, financial, governance, legal, capital raising, innovation, risk management, environmental, native title, community, ASX and broad regulatory and government policy directly applicable to the advancement of our business.
The future success of the business is dependent on innovation, to stay relevant in a competitive marketplace. Without innovation, there isn’t anything new, and without anything new, there will be no progress. The result of innovation should always be an improvement.
Innovation is a driver of transitioning to renewable electric power, minimising the quantity of rock excavated, reducing land surface area disturbed, repurposing all ‘waste’ into a ‘new’ usable material, reducing water usage, reducing chemical usage, all these reduce costs, and improve whole of mine environmental sustainability. It is a process of continuous learning, constantly improving the way we work.
Innovators “think different,” to borrow a slogan from Apple. Observing and questioning go hand in hand.
Build a ‘Digital’ Era Mine
Innovators observe things, then question why. In the digital age, the pace of change has accelerated, so we must get these strategic, executional, and organizational factors right to innovate successfully. Mining is complex – technically, financially, regulatory, community, and innovation complicated.
Digital technologies are doing for human brainpower what the steam engine and related technologies did for human muscle power during the Industrial revolution. Allowed society to overcome many limitations rapidly and to open up new frontiers with unprecedented speed.
Over many years, and considerable investment in research, an optimal mining system for Charter Towers has evolved. Test mining identified constraints to be overcome compared to historical methods. Location and geometry constraints. A leading design engineer commented, “we can now design out all the constraints”.
Innovation requires external collaborators. Flows of talent and knowledge increasingly transcend company and geographic boundaries. Successful innovators achieve significant multiples for every dollar invested in innovation by accessing the skills and talents of others.
Charters Towers Gold Mine Project ‘Mineral Resources and Ore Reserves’ are:
Mineral Resources and Ore Reserves are reported in accordance with the Australasian JORC Reporting code, in the “Gold Technical Report”, 8 December 2020.
The independent Technical Report, by Pathfinder Exploration, is a rigorous review and evaluation of the geology and technical aspects of the project’s gold deposit.
LINK: ‘Gold Technical Report 2020’
LINK: Gold Mine Valuation
Confidence in Gold Ounces
Reporting requires the Technical Report to state the confidence level the author has in the contained ounces of gold reported and as stated in the report as:
±10 to 15% for the contained ounces in the Probable Ore Reserve; and ±30% for the contained ounces in the Inferred Mineral Resource.
The strong confidence, in the ‘Inferred’ ounces is because two known mining factors have been included (a minimum mining width of one metre, and a substantial discount of the tonnes (-50% to -70%) based on known mine payability on the reefs.
Citigold’s ‘Financial Model’ for go-forward gold production has applied a further conservative 20% discount to contained in-situ gold ounces for the estimation of ounces available to be mined in each of the reefs.