Citigold Corporation has major infrastructure and operating cost advantages with its Charters Towers operations forward cost estimates indicating the company could become an internationally competitive ultra low cost gold producer.
Citigold’s cost advantages include –
* Close to the major town of Charters Towers with 8,500 people.
* State grid electricity available to the mine.
* Recycled self-sufficient water supply to the mine and extraction plant from dewatering of the old mines.
* Existing local community, 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$400 per ounce at the initial production of 220,000 ounces per year and total cash costs under A$500 per ounce of gold produced due to increased efficiencies.
Gold production at Charters Towers is planned to be 220,000 ounces from the Central mine.
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 bearing minerialisation by the grams per tonne of gold recovered relative to an ounce.
Costs have been estimated based on actual costs at Charters Towers and future trends for technology, raw materials and labour.
(Page Updated September 2016)