Citigold Corporation Limited · ASX:CTO
Citigold — Australian Gold Conference, Perth, October 2009
23 slides from Citigold's conference presentation, Oct 16, 2009
Slide 1: Mark J Lynch, MD/CEO - Citigold Corporation Limited
Mark J Lynch, MD/CEO Citigold Corporation Limited 1 Australian Gold Conference, Perth, October 2009
Slide 2: Legal Statement
Legal Statement DISCLAIMER - This presentation is intended to provide general information and is not intended to constitute legal, financial, accounting, tax, investment consulting or other professional advices or services. The information that is not about Citigold Corporation is collected from var
Slide 3: Topics Covered
Topics Covered Our Business Citigold’s 10 million oz Gold Deposit Gold Production Plan to 300,000 ozs/yr How We Grow Gold Production High Grade & Low Costs = Profitability 3
Slide 4: Our Business
Our Business :- “Citigold controls Australia’s Proven largest high grade gold deposit Asset and Growth the largest gold deposit outside a major company. Budgets show low mining costs and modest capital expenditure to grow to 300,000 ounces a year gold output” 4
Slide 5: Where is Charters Towers?
Contents Where is Charters Towers? “Australia is rated No. 1 for investment from 25 major mining/exploration countries based on key considerations of the :- economic and political system; social issues; permitting delays; corruption; currency; and tax regime.” 5
Slide 6: Corporate Snapshot
Contents Corporate Snapshot 1. Listed on Australia’s ASX in 1993, code ‘CTO’ 2. ASX Top 200 Australian Company 3. Shareholders 11,200 4. 100% of gold lands in 2004 5. 10 million ounces defined in 2005 6. Commercial development commenced 2006 7. Invested $150M to acquire and develop project 8. $225 m
Slide 7: Corporate Leadership Team
Contents Corporate Leadership Team LEFT to RIGHT - Christopher A J Towsey, MSc BSc(Hons) DipEd FAusIMM MMICA MAIG MAICD MAIG. - Chief Operating Officer – Geologist, 30 years experience with BHP,MIM, eminent specialist on Charters Towers goldfield. Mark J Lynch, FAICD - Managing Director - 29 years m
Slide 8: Strong Gold Asset
Contents Strong Gold Asset 1. Large gold deposit of 10 million ozs 2. High grade Resource 23 million t @ 14 g/t 3. 340,000 tpa plant, gold production commenced 4. Expand gold production to 300,000 ozs/yr 5. Long life mine of 30 years 6. Gold deposit upside 50 million ozs. 7. Single efficient mine 8.
Slide 9: Proven Asset Growth
Proven Asset Growth “Strong asset value growth” 9
Slide 10: Gold Plant Owned by Citigold
Gold Plant Owned by Citigold 10
Slide 11: 10 million oz Gold Deposit
Contents 10 million oz Gold Deposit Compliant with JORC standard Resource based on over 146 kilometres of drilling Gold starts near surface Resource to Reserve upgrade underway - expect 80% converts Geophysics to help accelerate mapping of high grade areas Contained JORC Category TONNES GR
Slide 12: Charters Towers Gold Deposit
Charters Towers Gold Deposit Historical gold production was 6.6 million ozs from 38 g/t (1.2 oz/t) ore. 10 million ounces of new gold resources defined. 12
Slide 13: Giant Gold Deposits are Rare
Giant Gold Deposits are Rare CHARTERS TOWERS GOLD DEPOSIT NORTH Towers Hill Drill Rid at Racecourse Old Shallow Mines Historical gold Charters Towers South (Warrior) production was Surface mainly from 120m North reef shown cut away. High-grade gold begins 900m Deepest previous mines 2,000m Possible
Slide 14: High Margin Ore-Body
High Margin Ore-Body Sample of highgrade ore in mine: 2 metres wide @ 2.4 oz/tonne Highest assay from underground ore : 830 g/t (27 ozs/t) (a) Bonan za deposits are gold deposits o ver 10g /t tonne tha t yield o ver 5 million ounces “The high grade gold ore is easy to see” 14
Slide 15: Gold Production Plan
Contents Gold Production Plan Clear Strategy for Major Growth 350 300 WARRIOR SUNBURST Ounces (Thousands) BRILLIANT DAY DAWN 250 200 150 100 50 0 2009 2010 2011 2012 2013 2014 2015 “Four adjacent mines sharing common infrastructure give a strong growth path and sustainability for up to 30 years or b
Slide 16: Gold Production Growth
Gold Production Growth ANNUAL GOLD PRODUCTION PLAN (First 3 Calendar Years) 2009 2010 2011 25,000 ozs 85,000 ozs 160,000 ozs Development Expenditure focus on “Citigold is increasing underground infrastucture Plant forecasting to be Technical Upgr ade & Site Works, cash flow neutral Ser vices, 9% 12%
Slide 17: Strong Dividend Gold Potential
Contents Strong Dividend GoldPotential Royalty “Due to large size of the gold deposit forward cash flow budgets indicate potential to pay strong dividends to shareholders. Forecast gold price revenues @ $1,071/oz and un-indexed costs with margins to be maintained through automation.” 17
Slide 18: Low Cost to Extract Gold
Contents Low Cost to Gold Extract Gold Royalty Low cost producer with forecast costs of $350 per ounce at full production with economies of scale 18
Slide 19: Growth = More Tunnels to Mine Ore
Growth = More Tunnels to Mine Ore “Growing gold production is not complex. It requires scaling up of what we now do. Excavate more tunnels to sustain faster extraction of ore”. 19
Slide 20: Technical Skills in House
Contents Technical Skills in House “The operations and technical leadership team is very experienced in efficient and responsible mining” 20
Slide 21: Investment Considerations
Investment Considerations a) Clear strategy for major growth b) Already in low cost production c) Experienced & passionate management team d) Large, well located and understood deposit e) All required mining infrastructure in place f) Solid gold price with good upside potential g) Liquid stock able
Slide 22: Capital Structure
Capital Structure Issued Capital Shares 858 million Options 38.4 million Exercise Nov 09 to Apr 11 @ 20 to 50 c AUD Paid up capital $150 million Shareholders 11,200 Top 20 shareholders 30% All shares have one vote per share. No Convertible Notes/Debt. No shares or options are subject to lock-in or e
Slide 23: www.citigold.com
Citigold Corporation Limited Level 15, IBM Centre, 348 Edward Street, Brisbane, Qld, Australia Telephone 07 3834 0000 Facsimile 07 3834 0011 Email: CEO mlynch@citigold.com CFO mmartin@citigold.com Mining operations:- Clermont Road, Charters Towers, Qld Australia for further information visit www.cit
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