Join our daily newsletter At The Bell to receive exclusive market insights
- CitiGold (CTO) saw its share price rise more than 260 per cent this week following renewed interest in the company’s gold project in Queensland
- The company aims to develop the ultra-low-cost Central gold mine on the Charter Towers property and expects to secure major development funding by the end of the year
- While the project remains on care and maintenance, CitiGold maintains the site is production-ready and is focusing on securing the funding to begin generating revenue
- The news has caused a buy-up of the company’s shares, which have risen substantially after stagnating around a cent or less for more than four years
- In its most recent quarterly report, CitiGold revealed it burnt $77,000 on operating activities
- However, the quarterly cash burn is just a drop in the pond compared to its $1.9 million FY20 operational spend
- In addition, CitiGold had just $16,000 in the bank at the end of the quarter, but a $934,000 loan facility means the company has cash to burn for nearly ten more quarters
- However, CitiGold shares are down 20 per cent today, trading for 1.6 cents
CitiGold (CTO) saw its share price rise more than 260 per cent this week following a re-evaluation of the company’s Charter Towers project in Queensland.
The company has been pursuing the project for almost thirty years, with the aim to develop the ultra-low-cost Central gold mine on the property. That goal now seems closer than ever, with the company stating it expects to secure major development funding be the end of the year.
In further funding, CitiGold recently completed a private placement transaction for $900,000, demonstrating the continued support from its investors.
While the project remains on care and maintenance, CitiGold maintains the site is production-ready and is focussed on securing the funding to begin generating revenue. In preparation for production start-up, a site has been selected for the project’s planned processing plant.
The accelerated progress has caused renewed interest in the company’s shares, which have risen substantially after stagnating around a cent or less for more than four years.
Jumping 66.7 per cent just on Thursday, the CitiGold’s share price has already staged a 260 per cent rise since trading began on Wednesday.
In the meantime, in its most recent quarterly report, CitiGold revealed it burnt $77,000 on operating activities over the June quarter. However, the quarterly cash burn is just a drop in the pond compared to its $1.9 million FY20 operational spend
In addition, CitiGold has just $16,000 in the bank at the end of the quarter, but a $934,000 loan facility means the company has cash to burn for nearly ten more quarters.
CitiGold’s Charter Towers project currently has an estimated gold deposit of 11 million ounces, with an inferred mineral resource of 25 million tonnes at 14 grams per tonne gold. To extract the resource, CitiGold plans to utilise a keyhole surgery technique to maximise the extraction of valuable ore without moving large amounts of earth.
By using this technique, the company believes it can fast-track production without requiring a significant increase in budget.
However, CitiGold shares are down 20 per cent today, trading for 1.6 cents at 3:04 pm AEST.
