Business & Investment

Is City Gold the smallest featured gold miner you’ve ever heard of?

Far north of Queensland usually doesn’t come to mind when thinking about some of Australia’s finest gold-rich areas.

City Gold Corporation [ASX:CTO] A gold miner and explorer based in Charter Towers, Nagaya is located in Australia’s largest high-grade major gold deposit.

The company’s stock has been isolated for several years after announcing potential mineral reserves in 2012.

Citigold stock price movement

Source: TradingView

Shares were back in mid-last year when the CTO announced that it was preparing to start mining on the CO3 Queen West project.

What does City Gold have?

The CTO seemed to have slipped under the radar last year, despite all the attention paid. Gold and Australian gold stocks..

Even more surprising is the company with an estimated mineral reserves of 2.5 million tonnes at 7.7 grams (g / t) per ton, including 620,000 ounces of gold.

And given the magnitude of the mineralization that surrounds the charter tower, it has the potential to grow.

The City Gold Charter Towers Gold Deposit is Australia’s largest high-grade major gold deposit with 14 million ounces of gold mineral resources.

Yes, the CTO sits in a row house with an estimated 14 million ounces of gold mineral resources.

Historically, Goldfield has produced 6.6 million ounces of gold in 45 years at an astonishing average ore grade of 38 g / t.

The CTO’s share price soared late July last year when the company announced that the project site was ready for mining and there was lively debate about financing.

Recently, the CTO published some interesting results from an expedition just north of Charter Towers.

Sampling returned important base metal and silver characteristics, a style of mineralization that is different from what is normally found in the region.

In one sample, 10.15 g / t gold, 2.03% zinc, 0.8% lead, 0.07% copper and 29 g / t silver were returned.

So what about the stock price?

The CTO faces several issues and I think it took years to plan to hash the risks associated with these issues.

The first is that the gold resource is deep underground. To be exact, it is more than 200 meters underground.

This means that underground mining not only poses significant risks, but also carries significant costs.

This may have lowered the stock price.

The second problem is that the gold resource is under the city of Charter Towers.

This poses another important challenge.

Challenges that the CTO believes are currently overcoming.

The CTO said it focused on developing “ultra-low cost” mines at the site and more efficiently rethought the charter towers ore mining / processing approach.

Mine design is currently underway and the CTO is actively seeking funding for the project.

However, future miners have not yet detailed a timeline about when they believe it will first destroy the Earth.

In the meantime, if you want to keep up with all the actions from Australian gold miners and explorers, be sure to subscribe Daily Reckoning Australia.. It’s also a great way to stay on top of the latest investment trends and opportunities. The biggest advantage is that it’s free. Click here for more information.

Best regards,

Lachlann Tierney,

for Daily Reckoning Australia

Is City Gold the smallest featured gold miner you’ve ever heard of? Is City Gold the smallest featured gold miner you’ve ever heard of?

Back to top button