Deep Hole Drilling The current mineral resource has only been...

Deep Hole Drilling
The current mineral resource has only been defined down to a depth of 1,200 metres. Of the 1,559 significant drill intersections used in the 2005 Inferred Mineral Resource estimate, there are 22 drill intersections deeper than 1,000 metres, of which 19 are deeper than 1,100 metres and 10 deeper than 1,200 metres, with a maximum gold grade of 20.54 g/t Au. The deepest intersection in 2005 was 1,300.1 metres which returned 2.3 metre-grams per tonne.
In 2008, a 2,000 metre deep hole was drilled. This hole produced the following:

• Gold mineralisation a further extended 700 metres vertically to 1,900 metres.
• Continuity of mineralisation confirmed.
• Potential to significantly increase total gold resource.
• Geological model of deep gold structures proven.
• Record depth for Atlas Copco Diamac U8 APC drill.

This is believed at that time to be a world record depth hole drilled with the Atlas Copco U8 APC diamond core drill and the deepest diamond drill hole in northeast Queensland. The 2 kilometres of BQ drill rods in the ground weighed nearly 13 tonnes with this powerful 'mighty midget' drill rig completed the hole and pulled the rods successfully.
The final piece of drill core retrieved by the rig was from 2001.1 metres. The hole was drilled at a steep angle from surface of 78 degrees and stayed remarkably straight.
Citigold Corporation’s, now Chairman, Mr Mark Lynch said at the time “The results from the deep hole are awesome and prove beyond doubt that the Charters Towers mineralised system extends to great depths, way beyond the limits previously mined and remains open at depth and to the east”
The hole intersected additional separate mineralised structures of 0.50 metres length at 1,615 and 1,778 metres plus a smaller 0.02 metres at 1,982 metre depth. The results confirm the presence of gold related alteration and mineralisation and demonstrate that the mineralised structures persist to at least 1,900 m depth on the eastern side of the gold field.
UPSIDE - 50 Million ounce (1,600 tonnes) Gold Potential
Exploration to date has yielded the current 11 million ounce gold mineral resource. Growing the gold resources and reserves is a core business for Citigold.
Citigold’s exploration and studies to date have led to the conclusion that the overall Charters Towers goldfield, currently held by Citigold, has the exploration potential to contain up to 50 million ounces of gold. This conclusion is well founded and based on the following facts:

1. The goldfield has already yielded 6.6 million ounces of gold to depths of 400 m to 980 m;
2. Citigold has already defined an additional 11 million ounces of mineral resources from part of the goldfield down to a depth of 1200 metres;
3. The structures containing the gold mineralisation are considered to extend to at least 3,000 metres in depth. Significant mining to date has generally remained above 700 metres depth. This makes the area near a 18 million ounce field down to 1200m depth, the field averaging 13,000 oz per vertical metre. The main Day Dawn- Brilliant structure averaged 4,000 oz per vertical metre (4 million ounces down to 1,000 m).
4. At least four additional major parallel structures remain unexplored. The structures have been mapped, are gold mineralised and have previously been partly mined. These parallel structures could contain four times the known mineralisation. Four structures averaging 4,000 oz/vertical metre down to 3000 m would contain 48 million ounces. This works will take many years and substantial capital expenditure.

Citigold’s exploration strategy is focused around and adjacent to its mining operations at Charters Towers. This is referred to as “brownfields” exploration, exploring in and around known mineralised areas, rather than exploring “greenfields” or unknown areas. The Company holds over 1000 square kilometres of exploration tenements covering approximately 80 prospects that have potential for economic mineralisation.

https://www.citigold.com/exploration/