Citigold Corporation Limited plans to recommence production at its principal project, the Charters Towers Gold Project, located in north-eastern Queensland. The deposit ranks among the largest, highest-grade pure gold resources in Australia.
It holds an Inferred Mineral Resource of 32 million tonnes at 14 grams per tonne of gold, which translates into a total of 14 million ounces. It has, however, estimated a Probable Ore Reserve of 620,000 ounces at 7.7 grams per tonne. These reserves are a testament to the great size of the project and its potential to produce in the longer term.
So far, funds to the tune of $300 million have been poured in by Citigold in acquiring the deposit, developing infrastructure, and undertaking test mining. Prior activities produced over 100,000 ounces of gold, confirming grade and viability. 
Citigold Central Mine site and underground ramp portal entrance
What financial hurdles remain for Citigold?
The financial results for the year ending 30 June 2025 reflected the challenges of preparing for production without current mining revenue. Citigold reported $22.15 million in losses after tax, as against losses of $2.3 million for the year 2023.
Net assets went down to $74.4 million from $96.5 million just a year before. The company placed a $20-million impairment charge against exploration and development expenditure.
The directors emphasised that the adjustment is an accounting measure and does not reflect a diminution in the project’s inherent value. The directors remain confident that the net present value of the project exceeds the adjusted carrying figures.
Why is new funding so critical?
Opening Charters Towers is one of securing enough capital for the underground works. Citigold remains in discussions with funders, buoyed by record-breaking levels of gold prices.
Later periods from 2024 to 2025 show gold prices fluctuating in ranges between A$3,200 per ounce and A$5,500 per ounce, which does well to support investor interest in Australian projects.
Restart plans would entail the lengthening of the Central Mine access tunnel, around 2,000 metres to a vertical depth of 430 metres. Initial mining will be at 280 metres, aiming for reefs such as C03W, C38, and C39. Long term, Citigold plans on producing 300,000 ounces a year and putting the company in the limelight of large gold producers.
Pink areas show planned gold mining; brown areas indicate previous extraction
Exploration programs strengthen growth outlook
While onsite funding arrangements went forward, Citigold further pursued regional exploration. A rock chip sampling program has returned a new anomaly in the area, some 9 kilometres southeast of Charters Towers.
The 1.5 km by 1.0 km zone showed enhanced pathfinders of As, Bi, and Th. These results are indicative of late-stage gold-quartz mineralisation, bringing forth the yet unexplored potential of this district.
The findings affirm the long-term belief Citigold has had in the magnitude of the opportunity at Charters Towers. Alongside exploration, detailed mine planning, and engineering assessments have been completed and advanced to an operational level, making sure that it is all ready to go once capital is secured.
Operational planning points to scalable production
Priority one for the restart remains with the Central underground mine. Development will progress on the extension of the twin access tunnels from the surface and crosscuts to grade the high-grade reefs.
In-ore drives will be driven at a vertical spacing of 20 metres to provide for detailed grade control for extraction. Waste will remain as pillars. Mining can progressively ramp up under this staged approach while simultaneously controlling costs and maximising efficiencies.
There is already a strong infrastructure base in place, including granted mining leases, over 200 vertical metres of underground access from surface, power, water, roads, and surface facilities. This lowers the risk associated with start-up and hence reduces timelines to production.
Citigold’s Charters Towers project covers 30 leases and active exploration permits
Investor confidence grows as gold strengthens
Rising gold prices have had Citigold on the minds of investors globally. Inflationary pressure and currency volatility have enhanced gold’s standing as a safe-haven asset. World demand may rise beyond 4,700 tonnes in 2025, supporting prices at higher levels.
Citigold’s Charters Towers project is well-positioned to take advantage. Management believes the deposit is sufficiently large and of adequate grade to generate significant positive cash flows for decades once mining operations resume.
In strategic funding, there is an opportunity to transition from explorer to producer, thereby changing the very landscape of Citigold. Hence, shareholders are being asked to position themselves firmly with Management for the year 2025 and beyond, as plans for the operational restart continue to gain traction.
Also Read: Locksley Resources (ASX: LKY) Annual Report 2025: Critical Minerals Update
FAQs
- How large is the Charters Towers gold deposit that Citigold looks after?
The geological formation has about 14 million ounces in resources, with 620,000 ounces in reserves at a grade of 7.7 grams per tonne.
- How much have they invested in the project?
Citigold has invested over $300 million in acquisitions, infrastructure, and test mining activities to date.
- When will production recommence at Charters Towers?
The restart timelines are dependent upon funding, but discussions on operational matters are far advanced already.
- What is Citigold’s long-term production target?
Citigold intends to grow the level of production to about 300,000 ounces a year, becoming an important Australian gold producer.
