This as well. The Australian Stock Exchange Limited FOR...

This as well.

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The Australian Stock Exchange Limited

FOR IMMEDIATE RELEASE​

27 September 2002



General Manager gives stamp of approval to Gold Production Plan

Today, Charters Towers Gold Mines launched its new Gold Production Plan which reveals that the goldfield has at least 15 million ounces of gold resource potential.

The Gold Production Plan (‘GPP’) was developed by CTGM’s technical team, led by recently-appointed General Manager, Mining & Exploration, Mr Chris Towsey. A chartered professional geologist and highly experienced in gold reef systems, Mr Towsey confirmed that the findings are based on sound geological reasoning, extrapolation of known resources, 145km of drilling, and historically-proven payabilities. The resource potential is not classified as an Ore Reserve or Mineral Resource at this time.

‘The GPP shows how the company will produce 250,000 ounces of gold per annum after a five-year production build-up period,’ Mr Towsey said.

‘With operating costs estimated at a low US$115/oz, the project will be profitable from Year 1. The company would maintain this production level for a total of 30 years, producing a total of 6.8 million ounces.

Gold production would commence following six months of development and underground diamond drilling.

There will be progressive development of four “new” mines – Brilliant, Sunburst, GoldTec and Warrior. Production will be increased to 250,000 ozs in Year 5, when annual cash surplus should exceed US$50 million, based on a US$0.53 exchange rate and gold price of $US325/oz.

With at least a 30-year mining life for the field the plan anticipates a project internal rate of return of 61% and a net present value of US$241 million at a discount rate of 12% (excluding cost of capital and taxation),’ he continued.

Giant Project

‘Since joining the company my priority has been to articulate a clear strategy to develop this potentially giant project,’ Mr Towsey said.

‘From a management perspective, the GPP will serve as a guide for future investment, cashflow planning and full development of the central goldfield. And specifically, it clearly defines the resource potential of 15 million ounces of gold,’ Mr Towsey concluded.

The full Gold Production Plan can be viewed on CTGM’s new website www.ctgold.com.au
Click on News & Reports, then Technical Reports to view GPP.

Roslyn Shand
Company Secretary
Charters Towers Gold Mines Limited ACN 060 397 177
ph +61 7 3870 8000 fax +61 7 3870 8111
email [email protected]
web www.ctgold.com.au