PERTH (miningweekly.com) – ASX-listed miner Citi Gold has signed a letter of intent with China’s Henan Jinqu Gold Company (Jinqu) to jointly develop the Charters Towers operation, in Queensland.

The signing of the letter of intent builds on an earlier memorandum of understanding, and followed on from the recent inspection of the Charter Towers operation by Jinqu’s technical team. This inspection was the start of a more formal due diligence process, and included the site of the proposed City mine to be developed and operated through an incorporated joint venture (JV).

The JV would comprise granted mining rights with permits to mine, as well as the associated infrastructure, on an area containing a gold mineral resource of 1,8-million ounces.

The Charter Towers project was set to produce around 200 000 oz/y of gold.

The City mine would work several adjacent reefs as a major mine, and Citi Gold said that the two-year development time set aside for the project meant that extensive underground development could take place to ensure a consistent gold production ramp-up.

Citi Gold said in a statement that the JV did not include the separate Warrior mine, or the existing 340 000 t capacity gold processing plant.

Citi Gold was hoping to accelerate work towards gold production, independent from the JV, from other areas of the goldfield, and to increase the overall gold reserve and resources of the company.

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