Oct 27, 2020

Fresh approach for Citigold mining plans

Fresh approach for Citigold mining plans

Citigold says it has selected a site for a new small footprint processing plant to help to remove the bulk of the granite dilution from planned underground gold mining operations.

The company is continuing to seek finance to complete underground capital works to restart mining at its Charters Towers gold project, based on an 11 million-ounce gold deposit under the historical gold mining city.

In its quarterly report, Citigold said the new planned processing plant would be located adjacent to the company’s previously mined Stockholm open pit.

The company’s plans had evolved over the past quarter to power the process plant with a small captive renewable energy system, Citigold said.

It had previously anticipated toll treating ore at its former Blackjack processing plant (sold to Maroon Gold in 2017).

The company has outlined a new approach to resuming mining at its Central Mine site, adjacent to 30 Nagle St in Charters Towers, which is centred around the Brilliant East decline.

It said it was continuing to update mine design with mining engineering consultants Prospector Enterprises.

Citigold proposes a keyhole surgery approach to its mining, with the planned use of two small declines, commencing about 1300m down the
current single decline.

The ‘twins’ would require smaller blasts, excavate less rock than a
single standard decline and result in less material to move, the company said.

An electric conveyor would be used to move ore and waste to the surface, Citigold said.

It has also flagged plans to power the operation with renewable energy sources.

“During the period, the sites were selected and the possibilities for ‘captive’ off-grid renewables was considered to be favourable,” it stated in its quarterly report.

“There are additional upfront capital costs, that need to be amortised, but then the ‘energy’ costs are essentially free.”

Citigold also reported that active discussions for major project funding had advanced in the past quarter and were expected to be in place by the end of this calendar year.