CITIGOLD CORPORATION LIMITED During the 2016 Financial Year, the Charters Towers Gold Project remained the Company's prime focus. The Project comprises 100% control of the 11 million ounce gold deposit, with an Inferred Mineral Resource of 25 million tonnes at 14 grams per tonne gold and 620,000 ounces of gold in the Probable Ore Reserve (2.5 Mt @ 7.7 g/t Au at a 3 g/t cut-off).
There was no gold production during the year with all the project sites and assets being maintained in active care and maintenance ready for recommencement of mining operations.
The Company does not require additional mine acquisitions to sustain long term gold production. Citigold has already invested over $200 million in acquiring the gold deposit, developing the infrastructure and mines at Charters Towers. Trial mining operations have produced over 100,000 ounces of gold.
Citigold continues to advance discussions with several major strategic funding partners in developing the production ready Charters Towers Gold Project. The period has seen an improvement in the gold price indicating an increase appetite for gold by investors.
The past year has seen the Company further refine its development strategy, and innovation plans, that aim to optimise the asset at Charters Towers and become an ultra low cost gold producer. Additionally, these savings will include reducing the environmental surface footprint of the mine.
The Charters Towers Project still remains one of Australia's largest high grade pure gold deposits.
The development fundamentals remain robust with the gold production plan having an initial target of 50,000 ounces per annum building up to over 220,000 ounces of gold production per annum in year 5. In order to move back into gold production we continue to plan for the resumption of mining gold at Charters Towers.
To achieve this goal the following are some of the activities carried out during the financial year:
Strategic mining review resulted in the expected lead time to gold production from re-commencement of Charters Towers operations being shortened to 10 months. This assessment was made possible by the geological work over the last 3 years, planning sessions, the rethinking of lead-time constraints and the commercial benefits imperatives for an incoming financing partner.
Designs and strategies for the Central Mine were refined, including the decline development extension, the main exhaust shaft, extraction slots in the mineralised zones and gold production.
Environmental monitoring and sampling continued to increase the base data to assist planning growth in harmony with the local community through maintaining a relatively small environmental footprint and harnessing renewable and recycling techniques.
Citigold incurred a net loss of $8.3 million during the 2016 financial year - being an improvement from 2015 net loss of $103 million including the non-cash impairment of $96 million to Capitalised Exploration, Evaluation and Development Expenditure.
We have continued to reduce recurring corporate overheads during the 2016 financial year with results to be reflected in the coming 2017 financial year. The Net debt gearing ratio remains low at 10.6%.
During the period government charges continued to increase as did our financing cost, which rose noticeably.
The large production ready asset at Charters Towers requires a substantial investment each year to maintain and hold the asset. Therefore we are looking forward to moving the asset back towards gold production in the 2016-17 financial year. Investors remain positive about realising the true unrealised value of the Charters Towers Gold Project.
I would like to thank our shareholders for the continued strong support of the Company as it implements its ultra-low cost vision in it's strategic business plan.
Mark Lynch
Chairman
Company's website - www.citigold.com
The following statements apply in respect of the information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves: The information is based on, and accurately reflects, information compiled by Mr Christopher Alan John Towsey, who is a Corporate Member and Fellow of the Australasian Institute of Mining and Metallurgy. Mr Towsey is a Chartered Professional (Geology) and currently independent of Citigold Corporation Limited, having previously been a Director of the Company from 2014-June 2016. He has the relevant experience in relation to the mineralisation being reported on to qualify as a Competent Person as defined in the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Identified Mineral Resources and Ore Reserves 2012. Mr Towsey has consented in writing to the inclusion in this report of the matters based on the information in the form and context in which it appears.
For full details see Technical Report on the Mineral Resources and Reserves at www.citigold.com click Mining >Technical Reports >Mineral Resources and Reserves 2012
Cautionary Note: This release may contain forward-looking statements that are based upon management's expectations and beliefs in regards to future events. These statements are subjected to risk and uncertainties that might be out of the control of Citigold Corporation Limited and may cause actual results to differ from the release. Citigold Corporation Limited takes no responsibility to make changes to these statements to reflect change of events or circumstances after the release
Citigold Corporation Limited Financial Report 2016ABN 30 060 397 177
Citigold Corporation Limited published this content on 30 September 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 September 2016 07:53:07 UTC.
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