Citigold Corp., which mines gold from an underground mine at Charters Towers, Queensland, Australia, and Anhui Geology and Mining Investment Co. Ltd. of Anhui province, China, have agreed to form an unincorporated joint venture to explore and develop the large exploration area around Citigold’s core Charters Towers mining area. The agreement calls for Anhui to spend A$30 million for exploration works over the next five years to earn a 50% interest in Citigold’s Charters Towers exploration tenements.
The exploration tenements cover an area of more than 1,200 km2 within a 50-km radius of Charters Towers. The exploration areas are considered to be highly prospective for repeats of the high-grade Charters Towers style mineralization. Further to the west and north, there is potential for polymetallic base metal deposits.
Previous work by Citigold has defined a number of drill-ready targets for gold that have returned gold values in the range of 5 g/mt to 30 g/mt. Recent ground geophysical work has indicated the narrow sulphide and gold-bearing veins of the Charters Towers mineralization style can be detected down dip to a depth of 2,000 m.
Anhui is a subsidiary of the Bureau of Geology and Mineral Exploration of Anhui province. Its extensive resources include more than 800 sets of drilling equipment; nearly 1,300 sets of specialized equipment and apparatus for experimental research, geophysical exploration, and mapping, etc.; and large analytical laboratories.