CTO - Citigold Corporation

roxy said:

Thanks for the quick reply kennas

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Should be support Roxy, but strange things happen in this mad world. Cheers.

Its only the first hour, but looks like that support is evaporating quickly.

roxy said:

Its only the first hour, but looks like that support is evaporating quickly.

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Market's awash in red ink. Hardly anything safe. Profit taking on a little US pullback after a very steady solid run. Sh@#it happens

Gold in theory should be staying up but the markets not a logical beast sometimes. Too much emotion.

kennas said:

Sh@#it happens

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Sh@#it does happen, but on a positive note, after the AGM yesterday, I went to say hello to John Folly (chairman) and say thank you. As it turned out, he'd booked A BOAT for dinner AND I got invited (don't ask why, I have no idea).

Can't say much except that they are down to earth (family) who have big plans for the company.

What surprised me and I think could've affected the sp is the initial operating costs for the Warrior mine est. at A$380 per ounce combined with low initial planned production 40,000 ounces per annum. In time cost should average out to A$250 and production should increase to 120,000.

new girl said:

Sh@#it does happen, but on a positive note, after the AGM yesterday, I went to say hello to John Folly (chairman) and say thank you. As it turned out, he'd booked A BOAT for dinner AND I got invited (don't ask why, I have no idea).

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Do you look like Prospector, New Girl? That would explain it.

kennas said:

Do you look like Prospector, New Girl? That would explain it.

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A little more than average in the looks department, but only just (not the blond type, fake streaks)

looks to have found support at 44 cents, this stock seems to have a very solid support line that has been tested on a number of occasions and held well.

was trading in channel which top of channel seems to coincide with medium term resistance. i thought the break above 50 would have sent it on a run but it has pulled back.

now i would like to see a break above 52 cents for confirmed breakout.

kennas said:

Do you look like Prospector, New Girl? That would explain it.

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lol, that would explain it


New girl, Kennas has a boat too you know and I'm his first mate, want to go for a cruise? :

YOUNG_TRADER said:

lol, that would explain it


New girl, Kennas has a boat too you know and I'm his first mate, want to go for a cruise? :

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Only if it's six stars or more

thanks for the chart dj

No posts on this thread since May. Everyone given up and gone home?

I've calculated a NPV15 of 0.56-0.63 per share for CTO at $US600 gold, still nicely above the market. Anyone else worked out a value?

Obviously the value is higher at today's $645 gold, and goes up as gold goes up - which IMHO it will.

oops! I was on page 1. But comment re share price still applies.

I'm still on the CTO train although it appears the interest in this stock has dried up considerably. Long term this is still a goer in my opinion but short term looks like going sideways until volumes pick up or POG continues northward. There are just so many stocks out there outperforming CTO recently that its been put to the back of the closet!

The reason this isn't jumping is that the resource is defined and the upside through exploration and upgrades is now limited imo. It is now a producer, and the way it will appreciate is through solid operations and POG increases. So, when they bring out production figures that could determine furture prices. It's operational performance that will drive this now. Will be happy to be corrected on the exploration side of things.....

noobs said:

I'm still on the CTO train although it appears the interest in this stock has dried up considerably. Long term this is still a goer in my opinion but short term looks like going sideways until volumes pick up or POG continues northward. There are just so many stocks out there outperforming CTO recently that its been put to the back of the closet!

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I totally agree with you Noobs. I held this stock for two years now. It tripled in value so can't complain, but I am gradually replacing it with other stocks like BSG (up almost 90c since I bought my shares a few weeks ago) and EPG (nearly doubled in the last two months and has much further to go)

I've been wondering where the future upside in this is, or risks and I suppose it's around the inferred resource of 10m oz au. If this is adjusted up or down then obviously it will effect the sp. The company has stated that they believe they can expand the resource to up to 50m oz au, so I think the risk is on the upside.

The other upside factor could be the quick development of the second mine - Sunburst. If this can be brought on line quicker than expected then the planned 80k oz a year on top of Warrior is going to be great value.

Probably due for another ann regarding gold pour at Warrior too.

Might have found the support expected at around $0.45/46. Might.

As dj's chart showed there is a trend line there, with support line drawn. $0.50 proved to be resistance as expected and I topped up a little prematurely when I thought it had broken through.

Still happy to be holding at this stage. POG is worrying me a little. Hope it holds above previous resistance at $620, to continue the uptrend. The darn $US has held too well!

kennas said:

POG is worrying me a little.

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Here's something to ease the worry: Bloomberg: Gold may rise as Investors seek alternative to Dollar

Gold May Rise as Investors Seek Alternative to Dollar (Update1)

By Choy Leng Yeong

Dec. 18 (Bloomberg) -- Gold may rise, snapping a two-week slide, on speculation Russia and Middle Eastern crude-oil producers may shift reserves away from the dollar, boosting the appeal of the precious metal as an alternative investment.

Seventeen of the 34 traders, investors and analysts surveyed by Bloomberg News from Sydney to Chicago on Dec. 14 and Dec. 15 advised buying gold, which fell 1.9 percent last week to $619.30 an ounce in New York. Eight respondents said to sell, and nine were neutral.

The central bank of Russia, the world's second-biggest oil producer, increased gold holdings by 2.2 percent to 394.1 metric tons in the third quarter, the London-based World Gold Council said last week. Gold rallied 7.6 percent in November, the most since April, as the dollar slumped to a 20-month low against the euro.

``Investors will start anticipating Arab oil producers are not happy with recent declines in the dollar,'' said Stephen Leeb, president of Leeb Capital Management, which oversees $152 million in New York. ``If the dollar is seen weaker from a longer-term perspective, that has to be positive for gold, one of the primary alternatives to the dollar.''

Gold may rise to $1,000 an ounce over the next 18 months, driven by a falling dollar and rising energy costs, Leeb said. Leeb Capital has 4 percent in gold equities.

Gold for immediate delivery rose $2.78 to $618.13 an ounce at 11:34 a.m. in Mumbai.

Gold futures on the Comex division of the New York Mercantile Exchange fell $11.90 an ounce last week, after sliding 3 percent the previous week. The decline surprised the majority of analysts who predicted a gain when surveyed on Dec. 7 and Dec. 8. Respondents have forecast prices accurately in 83 of 138 weeks, or 60 percent of the time.

European Central Banks

Sales of gold by central banks fell 31 percent in the third quarter to 59 metric tons from a year ago, according to the producer-funded World Gold Council. A group of European central banks this year sold 395.8 tons, below the 500-ton limit under a special accord, the Council said.

``Gold is just pausing in a secular bull market,'' said Michael Metz, chief investment strategist at Oppenheimer & Co. in New York, which has about $10 billion in assets. ``The Western central banks did not sell their quota. It's just begun to turn up in central banks like Russia.''

Belarus, Ukraine, Greece and South Africa are among countries that have increased gold reserves this year, according to the World Gold Council. The dollar has fallen 7.8 percent against a basket of six major world currencies this year, and gold has climbed 19 percent.

`Trend Will Accelerate'

``Dollar weakness, based on major central banks reducing their dollar exposure where possible, will continue to drive gold up,'' said Stuart Flerlage, managing principal at NuWave Investment Corp. in New York. ``This trend will only accelerate as Middle Eastern reserves are switched out of dollar- denominated assets.''

The central bank of United Arab Emirates, the third-biggest OPEC exporter behind Saudi Arabia and Iran, said in November its ``medium- to long-term objective'' was to boost euro and gold holdings to diversify out of the dollar.

Gold also may get a boost from speculation that higher energy costs will increase the appeal of the metal as a hedge against inflation.

Some investors buy gold to preserve purchasing power in times of accelerating inflation. Gold futures surged to $873 in 1980, when a jump in the cost of oil led to a 13 percent annual rise in consumer prices.

Crude oil rose to a two-week high of $63.43 a barrel on Dec. 15 after the Organization of Petroleum Exporting Countries agreed to production cuts.

`Buying Opportunity'

``Crude prices have moved up, and that will support gold,'' said Siddharth V. Kothari, an analyst at Sunidhi Commodities Pvt. Ltd. in Mumbai. ``There is also more non-commercial and institutional buying emerging. Any drop in prices to $617 and $620 should be taken as a good buying opportunity.''

Gold may rebound to $650 this week because ``weakness in the dollar will persist in the long term,'' he said.

Higher oil prices are ``generating background support'' for gold, said James Moore, an analyst in Kettering, England, for TheBullionDesk.com. Oil over $60 a barrel is ``likely to generate further anti-inflationary hedging,'' he said.

Hedge-fund managers and other large speculators reduced their net-long position in Comex gold futures in the week ended Dec. 12, data from the Washington-based Commodity Futures Trading Commission show.

Speculative long positions, or bets that prices will rise, outnumbered short positions by 81,829 contracts, down 2.2 percent from a week earlier.

To contact the reporter on this story: Choy Leng Yeong in Seattle at clyeong@bloomberg.net .
Last Updated: December 18, 2006 01:06 EST

CTO went down to 34c today before the announcement that high grade gold results and that they should be approaching 40000 ounces production in March 07. It is currently at 385c.

Here is the announcement.

Citigold Corporation Limited page 1
Citigold Corporation Limited
ANNOUNCEMENT
20 February 2007
High Gold Grades Continue at Warrior
Citigold is pleased to announce that diamond-core drill hole CT 693 has
returned the best intersection ever, in terms of width and grade, drilled at
Warrior. The intersection was 2.97 m true width @ 46.1 g/t gold commencing
at 165.05m down-hole. The current drilling program with the U8 rig continues
to extend the high grade zone on the 830 level to the west as well as proving the
ore zone is still open below the 800 Level. This confirms the original grade and
continuity assumptions made in the Warrior twelve month mine plan.
This drill intersection included several very high grade areas including 335.5 g/t
(10.8 oz/tonne) gold over 0.31 metres commencing at 166.94 metres down hole
- the highest drill result to date in the Warrior ore body. Full details of the drill
results are presented at www.citigold.com/exploration.html. The assaying of
drill cores is carried out by an independent laboratory, Australian Laboratory
Services (ALS). These high grade results have been confirmed by two
independent assay results in line with the stringent internal quality control
procedures requiring very high grade drill intersection samples be crossed
checked by re-assaying.
The series of high grade results intersected to date, also see Quarterly Report
released 30 January 2007, shows good continuity of the ore zone that is to be
mined at Warrior. Development driving has intersected the Warrior ore body on
the 850 and 840 Levels, and these levels are being developed ahead of stoping
(mining of ore). The Decline has descended to the 830 Level and a cross-cut is
being driven to access the ore on that level.
Full production stoping is planned for late March 07 when the planned rate of
mining is anticipated to be approaching 40,000 oz per annum and gold pouring
should increase to a weekly basis, from the current monthly gold pours.
Drilling on the separate high grade Sons of Freedom vein, intersected in the
Warrior decline, is being scheduled to commence in March. This drilling plans
to extend the known size of the vein and establish a second underground mining
area at Warrior.

Citigold Corporation Limited page 2
The Warrior mine has initially accessed the eastern side of the Warrior gold
deposit east-west strike line. The deposit has an overall length of 2 kilometres
and has been tested to a depth of 200 metres. The overall Inferred Mineral
Resource for the Warrior deposit is 1.9 million tonnes @ 14 g/t Au containing
840,000 ounces of gold (rounded to 2 significant figures) (see Table 8 on Page
59 of the Report on the Inferred Mineral Resources for the Charters Towers
Gold Project May 2005). Within the overall resource, head grades and widths,
of the specific mining areas are expected to vary.
Chris Towsey
Chief Operating Officer
Citigold Corporation Limited
19 Lang Parade, Milton, Queensland, Australia (ACN 060 397 177)
phone: +61 7 3870 8000 fax: +61 7 3870 8111 email: info@citigold.com
The following statements apply in respect of the information in this report that relates to
Exploration Results, Mineral Resources and Ore Reserves:
• The information is based on, and accurately reflects, information compiled by Mr Christopher Alan John
Towsey, who is a Corporate Member of the Australasian Institute of Mining and Metallurgy and the Australian
Institute of Geoscientists.
• Christopher Alan John Towsey is a geologist and employed by CTO as Chief Operating Officer.
• Christopher Alan John Towsey has relevant experience in relation to the mineralisation being reported on to
qualify as a Competent Person as defined in the Joint Ore Reserves Committee (JORC) Australasian Code for
Reporting of Identified Mineral Resources and Ore Reserves.
• Mr Towsey has consented in writing to the inclusion in this report of the matters based on the information in the
form and context in which it appears.

just as things were starting to look shakey on the chart, they release a nice little ann....

Citigold is pleased to announce that diamond-core drill hole CT 693 has
returned the best intersection ever, in terms of width and grade, drilled at
Warrior. The intersection was 2.97 m true width @ 46.1 g/t gold commencing
at 165.05m down-hole.

The news just gets better:

Citigold Corporation Limited, ASX & DIFX Code 'CTO', (Citigold) is pleased to announce that
the Warrior ore body currently being developed is continuing to display gold ore grades and
widths that are better than originally expected in the high grade zone.
Sampling and analysis of the walls of the 830 level Crosscut tunnel returned assays of 6.4 metres
true width averaging 52 grams per tonne (g/t) gold on the western wall. The Eastern wall assayed
5.7 metres true width averaging 27 g/t gold. Six one-metre wide wall samples returned grades of
over 60 g/t gold (approximately two ounces per tonne), with three samples over 100 g/t gold. The
830 Level is located 130 metres depth underground.

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Warrior May Replicate the Large Brilliant Mine
Data gathered from underground at Warrior gold mine indicates that the gold ore body may be far
larger than originally planned. This mine was planned as a modest size 40,000 ounce per year
producer. This was based on the drilling and analysis carried out in previous years. Now that the
gold ore body is exposed underground and, given the impressive high gold grades being
encountered, it is probable the mine will be much larger than originally planned.
The Warrior mine is on one of four large east-west mineralised structures that run sub-parallel to
the historically large gold producer Brilliant and Day Dawn reef mines. Citigold's previous trial
mining some years back was on several cross reefs (striking generally north-south ie. Cross Vein
No 2, Washington and the Stockholm). Cross reefs historically were associated with the large
east-west reefs but produced far less gold. The Warrior is the first east-west gold reef Citigold
has mined and looks very similar to the large Brilliant mine.
To open up this high grade gold lode relatively near the surface is very encouraging. Drilling
priorities are being reassessed and will target the ore body deeper below the level of current
drilling. The current success continues to show that the geologists have a good understanding of
the Charters Towers gold system and that the geological model is accurate.
Assayed grades from the diluted development ore have increased and although the tonnages are
small as expected the grades recently averaged 8 g/t gold in the mill feed. The Quarterly Report
due out in April will give the first production summaries.
In conclusion. I was inspired by what I saw underground at the Warrior mine during my recent
trip because the ore body looks strikingly similar to the historic glass plate photographs taken of
the rich Brilliant Mine that produced 1.2 million ounces of gold at nearly 1 oz gold per ore tonne.
For a colour copy of this release, see www.citigold.com, click “News”, then “ASX Releases”.

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