Watso, 50,000 ounces is no longer a target. It has been...

Watso, 50,000 ounces is no longer a target. It has been "removed" by CTO.

"... all previous forecasts are removed and the company will not at this stage be providing guidance on quarter or yearly production targets."

In the March quarterly CTO give their reasons why they are doing this. Here they are:

"ASX Guidance

The ASX stock exchange provided guidance to listed companies on 11 January 2010 on how they expect variation to forecasts to be treated; outlining that where the change is greater than 15% to forecasts an announcement prior to quarterly report would be required. While our mining operations are in the development stage changes greater than this are a normal feature of the geology.
The geology at Charters Towers is understood and therefore variations are normal for us but nature cannot be made to fit unnatural limitations. In geology there are accepted tolerances for error or natural variations in the assaying of the drill core of +/- 15% and the Resource confidence is approximately 80%. Therefore Citigolds production forecasts may vary naturally by at least 20% each quarter because of the unique geology.

Additionally large quantities of fine gold are contained in relatively small areas (as seen on the 720 drive where the highest grade sampled in the drive was 1030 g/t). This uneven distribution of the gold in the reefs, the payability, can result in unexpected variations in ounces extracted from an area, plus and minus, and is normal.

Therefore to determine the quarterly production to the new 15% statutory tolerance is unrealistic at this early stage of the Companys large scale development and, as a result, runs the risk of costly and time consuming inquiries by the ASX on matters where the company has clearly complied with the intent of the Listing Rules and Corporations Act.

As such all previous forecasts are removed and the company will not at this stage be providing guidance on quarter or yearly production targets. As the overall production grows and more working areas are established it is expected that gold production will become more even and guidance may then be provided."