Funding Talks and Tech Innovation Key as Citigold Prepares for Gold Production Ramp-Up

Restarting a World-Class Gold Mine

Citigold Corporation Limited (ASX: CTO) continues to advance its flagship Charters Towers Gold Project in northeast Australia, aiming to transition from test mining to full-scale production. The company recently reported on its December 2024 quarter, reaffirming its readiness to ramp up operations following the successful extraction of 100,000 ounces of gold during test mining phases.

With a clear vision to become an ultra-low-cost producer exceeding 300,000 ounces annually, Citigold is leveraging state-of-the-art technologies and operational efficiencies. This approach is designed not only to maximise shareholder returns but also to ensure environmental stewardship in the local region.

Stable Resources and Focused Exploration

The company’s mineral resource and ore reserve estimates remain unchanged since the 2020 JORC report, with indicated mineral resources containing approximately 780,000 ounces and probable ore reserves at 620,000 ounces, all at robust grades around 7.7 grams per tonne. Inferred resources stand at a substantial 14 million ounces at a higher grade of 14 grams per tonne, underscoring the project's long-term potential.

Exploration efforts during the quarter were strategic and preparatory, involving landholder consultations and site inspections ahead of field programs. Citigold is also pioneering the use of advanced geophysical techniques tailored for environmentally sensitive areas, aiming to improve the precision of reef geometry mapping while reducing reliance on traditional drilling. These innovations could significantly enhance cost-effectiveness and exploration outcomes going forward.

Engineering and Infrastructure Development

Engineering activities have concentrated on optimising the high voltage electrical network essential for underground mining operations. Given the extensive scale of the mining area, stretching 5,000 metres in length and over 1,000 metres vertically, careful planning of cabling, transformers, and load points is critical. This infrastructure will also support the planned processing plant, a key component in the mine’s operational blueprint.

Mine design and scheduling continue to be refined, reflecting a methodical approach to ensuring operational efficiency and safety. Notably, the company reported no lost time injuries or significant environmental incidents during the quarter, reinforcing its commitment to health, safety, and community engagement.

Financial Position and Funding Outlook

Citigold’s financial disclosures reveal ongoing expenditure on exploration, development, and corporate activities, with a total cash outflow of approximately $55,000 from operating activities and $33,000 capitalised on exploration during the quarter. The company holds $2,000 in cash and has access to $828,000 in unused financing facilities, providing an estimated 9.4 quarters of funding at current expenditure levels.

Importantly, Citigold is actively engaging with potential funding partners to support the mine’s development phase. Discussions are at various stages, reflecting interest from external entities to participate in the project. The company retains flexibility through mechanisms such as share placements, forward gold sales, and loan facilities to secure necessary capital.

Looking Ahead

With all resolutions passed at its 2024 Annual General Meeting, Citigold is positioned to continue its methodical progress toward full production. The company’s strategic blend of exploration innovation, engineering optimisation, and prudent financial management sets a solid foundation for the next phase of growth at Charters Towers.