how much gold does cto have?

CTO lists gold resources as "10 million ounces of gold (331 tonnes) Inferred Mineral Resource – JORC compliant" and "The total Probable Ore Reserves for the overall Charters Towers project are 800,000 tonnes at 13 g/t Au containing 330,000 ounces of gold at a 7 g/t Au cut-off. There are seven bodies in the Probable Ore Reserves."

Source: http://www.citigold.com/goldresourcestenure.asp

The following by David Duval makes an interesting read.

From "Evaluating Gold Juniors: Are You Missing the Big Picture?"

... Resource estimates are by far the most misunderstood feature of the 43-101 reporting standard. Investors like to apply values to resources that have not been proven economically viable which is a long, costly process. This is particularly true for “Inferred Resources” which have a great amount of uncertainty as to their existence, along with their economic viability. It cannot be assumed that all or any part of any Inferred Mineral Resource will ever be upgraded to a higher category.

For large exploration projects, most companies focus on developing the property-wide potential with widely-spaced drill holes. The reason for this is actually quite simple and practical. Drilling is expensive so rather than expend money tightening up drill hole spacing to produce a resource with no economic legitimacy, companies prefer to assess the global potential to ensure they end up testing the most attractive targets.

Summary

.... Be careful not to apply economic viability to any resource category, especially inferred resources. Even resources that are included in a full fledged feasibility study are subject to various assumptions including future commodity prices.

Full article by David Duval at http://www.jsmineset.com/

Also Filed under: "David Duval" at http://www.jsmineset.com/

My comments:

An interesting read.

Until CTO can establish some serious production, not just a few thousand ounces a quarter, the market in my opinion is clearly treating the 10 million ounces of gold AS "inferred resources" as per the JORC compliant information.

It is also worth noting that the "Probable Ore Reserves" of 330,000 ounces have also not had sufficient costly drilling done to satisfy the "Proved Ore Reserves" classification.