If you take the company at their word, the $50m for the second...

If you take the company at their word, the $50m for the second mine will be raised mostly through debt funding.
If they are able to ramp up the current Warrior mine so that the company gets close to cashflow positive, then they can take that sort of result to the bank I guess. I suppose it's possible they could go the convertible note route again though, in which case dilution would still be a factor.

From the Dec 2007 Citigold Outlook for 2008:
http://www.stocknessmonster.com/news-item?S=CTO&E=ASX&N=486748

" Financial
· Raise significant commercial funding, estimated at A$50 million, to accelerate
development with minimal dilution of existing shareholders. Citigold has no loan debt
and this has served the company well. In the past we have sought joint venture
participation but, with the benefit of hindsight, retaining 100% of the Charters Towers
operations has been and will be in the best interest of shareholders. Going forward,
as cash flows become more certain, debt funding may add the most value for the
Company and shareholders."