Citigold is producing gold from Australias richest goldfield at...

Citigold is producing gold from Australias richest goldfield at Charters Towers in Queensland, north-eastern Australia. The Company holds 100% of the high grade Charters Towers Goldfield where a JORC compliant Mineral Resource of 10 million ounces (331 tonnes) at an average of 14 g/t gold has been defined and documented.
Citigold has invested over A$ 160 million to develop the goldfield and has commenced commercial production from its underground mines with production forecast to grow in stages towards 300,000 ounces annually at a cash cost per ounce of A$ 350 at full production.
Based on the Companys Mineral Resource of 10 million ounces, at a conservative in the ground value of US$ 50 (A$ 54.60) per ounce, this represents a value of US$ 500 million or A$ 546 million. This equates to a valuation of approximately A$ 0.60 per share, which is more than five times higher than Citigolds current share price.
With Citigold expected to grow to a low cost mid-tier gold producer by 2012, supported by the recently signed joint venture agreement with Henan Jinqu Gold, we anticipate the growing production to act as an extra stimulus to Citigolds market capitalization.
Our next price objective is: A$ 0.20.