5 reasons to buy cto, page-2

5 reasons to buy CTO:

1. There is a massive deposit of rich gold. Citigold has phenomenal potential as per the history of the mine, with 6 repeat structures each of 6+m oz, and the huge mother load (like fingers emanating from a hand). Refer:
-go to http://www.citigold.com/charterstowersstory.html, just as a warm-up
-get “Charters Towers Goldfield” by GH Reid, Government geologist. 1917
-get “Charters Towers Gold Mines” (a descriptive & historical account of the town and gold field of Charters Towers, Qld… with full and detailed particulars of the more important mines), by L W Marsland 1892.
The gold mine closed due to WW1, and not due to lack of ore. Then the town grew and it was difficult to get underneath the town without modern technology.

2. As per recent announcements, the results are even better than expected, and they haven’t even reached the main ore body of Warrior, and Warrior isn’t expected to be as rich as 3 other bigger mines. Based on this, you could double the expected production from Warrior of 40,000oz per year, to 80,000 oz. Also the directors are notoriously conservative with forecasts (ie best to get unexpected nice surprise, than a bad surprise).
So you can increase this to 100,000 oz per year. This makes it a substantial gold producer, and this just with 1 of 4 mines, and excludes the mother lode.

3. Because of this a Joint Venture may not be necessary, ie Citigold is likely self-funding. In this situation, I don’t mind deferring dividends for a year or two, because the capital gains will more than compensate.

4. The gold sector has been burnt by Ballarat & Bendigo. Thus potential gold investors are waiting for more actual gold bars to be poured to show Citigold isn’t a “one-bar wonder” like Ballarat & Bendigo. At this point the shares should be 80+c. And ultimately heading much higher. The market seems to think there is still some risk even though gold is in ground and being mined, so they want to wait until gold bars are poured.

5. The company is total debt-free, and has all infrastructure in place since original mine was built over the town.