citigold signs mou

ANNOUNCEMENT
Citigold signs MOU to develop Charters Towers City mining area
4 March 2010: Brisbane, Australia Citigold Corporation Limited (Citigold) (ASX:CTO,
FSE:CHP) advises that is has signed a non binding Memorandum of Understanding with Henan
Jinqu Gold Company Limited (Jinqu), China, to form a joint venture company to develop the City
mines of Citigolds Charters Towers gold project.
Under the terms of the MOU Jinqu may acquire up to a 50% interest in the joint venture company
which will own granted mining leases with permits to mine and associated infrastructure, containing
a gold Mineral Resource of 1.8 million ounces*.
Henan Jinqu Gold Company Limiteds main
industry is the exploration, mining, processing and
smeltering of gold. The company is also engaged in
research, development, production and sales of
synthetic diamonds. The company is a member of
the Shanghai Gold Exchange.
The City mining area is where Citigold carried out
the initial exploration in the 1990s after acquiring
the first part of the Charters Towers goldfield. Full
control of the goldfield was obtained in 2004.
Citigolds Gold Production Plan for the design and development work has been undertaken with the
aim of producing 200,000 ounces per annum from the City mines. The City includes the major
Sunburst, Brilliant and Day Dawn reefs to be developed together as one super mine.
Citigold has internally budgeted that the development of the City operations should take 24 months
and cost up to $70 million. The development of the City is to be separate from the 100% owned
Warrior mine and the existing 340,000 tonne capacity gold processing plant.
For further information contact:
Matthew Martin
Company Secretary