Restarting a World Class Gold Mine
PO Box 1133, Fortitude Valley QLD 4006 Australia
T: +61 (0)7 3839 4041 | E: info@citigold.com |
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Quarterly Report
For the period ending 31 December 2021, dated 11 January 2022
HIGHLIGHTS
- Main focus remains on advancing the mine design and engineering for the Central Mine, ahead of the mining restart process.
- Latest round of exploration infill rock chip and float sampling has highlighted additional anomalous gold results1.
- It is 150 years anniversary since the discovery of gold at Charters Towers.
- Major project funding negotiations continuing.
COMMUNITY
150 years anniversary since the discovery of gold at Charters Towers.
On 24 December 1871, a 12-year- old First Nations Australian boy named 'Jupiter Mosman' as part of the prospecting team discovered gold that led to the birth of Charters Towers in Queensland.
Jupiter's important contribution to the discovery of the gold made Charters Towers goldfield in Queensland, Australia's fifth- largest gold producer, and saw the richest gold ore grades of all the major goldfields.
Citigold's recognition of Jupiter included commissioning two large paintings in 1997 and 1999 by Marji Hill, a renowned writer of educational books on Australia's First Nations. The initial painting depicted Jupiter as an elderly statesman of Charters Towers, and the second was an artist's impression of the discovery of gold in Mosman Creek by Jupiter and the prospecting team, partially depicted above. The painting of Jupiter, as an elderly statesman, is on permanent display inside the historic community- owned and beautifully restored "World Theatre' building in Mosman Street Charters Towers.
1 See ASX announcement dated 12 November 2021,Exploration highlights area to the north of Charters Towers
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OPERATIONS
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Planned Resumption of Mining
During the Quarter the
Company's technology- driven 'ultra-low-cost mining' initiative manifested in selecting the site of the initial Citigold processing plant. The plant will be located closer to the Central Mine, adjacent to the Company's previously mined open pit. The site has existing mining leases with sealed highway door to door.
The evolving new process plant design will focus on the 'upgrading' of ore to remove the bulk of the granite 'dilution' that naturally occurs during the underground mining process.
Citigold envisages its new plant will be an environmentally friendly efficient design, requiring significantly less surface footprint, using less water and renewable energy power compared to traditional process plants. Further investigation is currently continuing to be carried out.
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CHARTERS TOWERS GOLD MINE
Mine Overview
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The below right satellite image shows Citigold's Central Mine site in excellent condition, the production- ready surface infrastructure well maintained and in place for the commencement of mining.
The Central Mine, located adjacent to 30 Nagle Street Charters Towers, is centred around the initially excavated Central Mine access tunnel, that dives down at a 1:7 slope to over 200 metres vertical depth in the granite country rock.
Previous trial production mining the 'usual way' identified the challenges to, and constraints on 'ultra-low- cost' mining. While we have been in the project development financing stage, our efforts have been to develop an efficient system.
The long-life mine will generate many benefits for the local community and the Company.
Mine Optimisation | ||||
In consultation with project | ||||
designers, an | innovative mining | |||
system has been put together | ||||
that takes an efficient 'keyhole | ||||
mining' approach to our mining | ||||
and thereby doing what needs to | ||||
be done for the geometry of our | ||||
ore system, which in itself is | ||||
somewhat | unique. Make small | |||
excavations, and just extract the | ||||
valuable ore minimising dilution | ||||
and processing less waste. | ||||
It is interesting that as we | ||||
investigate | 'greener' | ways to | ||
mine, new | cost | reduction | ||
Inside the portal of the Central Mine main access tunnel | ||||
opportunities emerge. | ||||
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To ensure harmony with the environment the mine will eventually be renewables powered. Potential sites were selected and the possibilities for 'captive' off-grid renewables were considered to be favourable.
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GEOLOGY AND EXPLORATION
Geology & Mineral Resources
Citigold's previous gold production test mining gave the opportunity to better understand the varying grades, varying mineralisation widths and varying ground conditions. Previous mining used conventional mechanised methods for reef mining1.
Citigold's Probable Ore Reserves grade average of 7.7 g/t gold, uses a 4 g/t economic cut-off @ a gold price of A$1,600/oz1. The mineralisation then and now is the same, but old-time hand mining indicatively used a 6 dwt (9 g/t) 'cut-off grade' for their higher cost unmechanised manual methods1.
Modern mechanised mining usually takes more total tonnes and overall more ounces of gold but at a lower ore grade than what was historically mined at 38 g/t1.
Mineral resources and reserves1 are summarised below:
Example of 'visual' high-grade mineralisation encountered during mining operations at Charters Towers.
Citigold's Mineral Resources and Ore Reserves for the overall Gold Project are reported in accordance with the Australasian JORC Reporting Code 20121. Mineral Resources and Ore Reserves remain unchanged during the Quarter. The material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed1.
1 See ASX announcement dated 9 December 2020, Mineral Resources and Ore Reserves 2020
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Citigold Corporation Limited published this content on 10 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 January 2022 23:47:04 UTC.