Hi kmuirheadMost of the comments on geothermal are not really...

Hi kmuirhead

Most of the comments on geothermal are not really relevant to Citigold, so I've not addressed them. However:

d) The economics do work - most of the South African mines use this system of pelton wheels to generate some extra power.

e) The comment was that the lower geothermal gradient would DELAY the introduction of refrigerated ventilation, not that refrigeration would not be required. The Emperor Mine in Fiji used refrigerated air at depths of only 600m due to rock temperatures there of 60 deg. Yes, Citigold is not planning to mine at 2000m soon - they released a 30 year mine plan in 2002 which they are still generally working to, although some priorities have changed.

f) The research work quoted in Citigold's resources report in 2005 indicated that the gold is derived from the fluids in the granite, and formed at depths of 3-5 km. The crust often uplifts as granite rises through the crust, doming up. As the granite cools and starts to crystallise, it stops rising and contracts. This creates a void space called a cupola across the top of the granite, in which the gold-bearing fluids collect. The cupola may be mineralised, or as the granite contracts, the dome above often fractures and settles back into the top of the granite, and this extra pressure may drive the last of the gold-bearing fluids up into the overlying fractures, emptying the cupola. There is a 50:50 chance of the cupola being empty or mineralised. Half the cost of the deep hole is being met by the government, who wouldn't have sunk $150,000 into the project if the government geologists didn't think the concept had merit.

g) Yes they have made projections that they did not deliver on, but most of the projections were dependent on funding being available to do the work - if the funding didn't eventuate the projections could not be met. From Citigold's various release, they have sunk some $120 million into the project so far, much of this from institutions (see the Top 5 shareholders in the Statistics section of their web site) including the last $4M in May which went to overseas investors. I don't think people part with $4M unless they think Citigold's a good investment. It's interesting to note the change in the Top 20 shareholders over the last three years (from their Annual Reports) - the institutions have been steadily accumulating and rising up through the ranks of the Top 20. The real investment money has been steadily going in, far outweighing the smaller investors.