Can Citigold Restart Charters Towers Gold Mine Amid $22M Loss?
Citigold Corporation continues its efforts to restart the high-grade Charters Towers Gold Project, focusing on exploration, mine design, and securing funding despite a significant annual loss.
- No change in mineral resources and ore reserves during the quarter
- Ongoing optimization of mine design and engineering at Central Mine
- Submission of Progressive Rehabilitation and Closure Plan to Queensland authorities
- Annual loss after tax of $22.1 million for fiscal year ending June 2025
- Available funding estimated to cover just over two quarters amid active funding discussions
Context and Project Overview
Citigold Corporation Limited (ASX – CTO) remains focused on advancing its flagship Charters Towers Gold Project in northeast Australia. The company is working steadily towards restarting operations at this high-grade gold mine, which it envisions producing over 300,000 ounces annually at ultra-low costs through modern technologies and operational efficiencies. The project covers a substantial 175 square kilometres of prospective exploration ground surrounding the Central Mine mineralisation area.
Exploration and Resource Status
During the September 2025 quarter, Citigold reported no material changes to its mineral resources and ore reserves, which remain consistent with previous estimates under the Australasian JORC Code. The company has invested in modernising its 3D geological models and integrating historical mining data to refine mine targeting and development plans. While no new drilling occurred this quarter, ongoing exploration programs continue across multiple permits, with results to be announced in due course.
Mine Design and Environmental Compliance
Engineering and mine design efforts at the Central Mine have progressed, focusing on optimisation of planning, scheduling, and development strategies. Citigold also submitted its Progressive Rehabilitation and Closure Plan to the Queensland Department of Environment, Tourism, Science and Innovation, outlining its commitment to environmental stewardship and regulatory compliance post-mining. The company reported no lost time injuries or significant environmental incidents during the quarter.
Financial Performance and Funding Outlook
Financially, Citigold posted a loss after tax of $22.1 million for the year ending 30 June 2025, a significant increase from the prior year’s $2.3 million loss. Net assets stood at $74.3 million as of June 2025. Quarterly cash flow reports reveal continued expenditure on exploration and development activities, with operating cash outflows of $449,000 and total outgoings of $504,000. The company holds $180,000 in cash and has $850,000 in unused financing facilities, providing an estimated funding runway of just over two quarters.
Citigold is actively engaging with potential funding partners and exploring various financing avenues, including secured loan facilities and forward gold sales. The company acknowledges the longstanding support from shareholders and is working to structure funding arrangements that balance the interests of funders and shareholders alike.
Looking Ahead
With the mine currently in care and maintenance, Citigold’s next steps hinge on securing sufficient funding and advancing exploration results to underpin a robust restart plan. The company’s upcoming Annual General Meeting on 19 November 2025 will provide further insights into its strategic direction and operational progress.
Bottom Line?
Citigold’s path to restarting Charters Towers hinges on securing funding and delivering exploration breakthroughs amid financial headwinds.
Questions in the middle?
- When will Citigold resume active mining operations at Charters Towers?
- What are the prospects and timelines for securing additional funding?
- How might updated exploration results impact resource estimates and mine planning?
