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Citigold has announced a 27 per cent increase in inferred mineral resources at its Charters Towers gold project to 14 million oz.

The company highlighted the results of a recent technical report on the mineral resources and ore reserves in a quarterly report this week.

The probable ore reserves for its tenements remained unchanged at 620,000 ounces of gold (2.5 million tonnes at 7.7g/t gold at a
cut-off grade of 4g/t).

The inferred mineral resources are 32 million tonnes at 14g/t gold at a cut-off grade of 3g/t, for 14 million ounces of gold.

During the quarter, the company raised $1 million in capital and selected the site for a new proposed Citigold processing plant.

Citigold was in gold production in the region from 2007 to 2015, but put mining operations on care and maintenance in 2016 as it sought to raise further capital.

The company has recently 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 says an innovative mining system has been put together that takes an
efficient ‘keyhole surgery’ approach.

The company’s stated aim is to become a 300,000-plus ounces per annum ultra-low-cost gold producer in five years.

It said this week it was continuing to focus on completing major funding negotiations and moving to gold production and revenue thereafter.