Citigold Corporation Limited provided an update on its continuing exploration program around Charters Towers in north Queensland. Exploration over the last two years has returned to grass roots, taking a fresh look at revised three-dimensional modelling of the geological structures and fractures that have been shown to host mineralization. Initial sampling followed conventional processes of stream sediment and float sampling, following up anomalous drainage basins with rock chip, float and soil sampling to define the spread of metals across the weathering profile.

Surface sampling has picked up new mineralised areas and confirmed demagnetised zones in rocks mapped as uniform or unaltered return low to medium grade gold and base metal values as gold is dispersed during weathering and groundwater transport. The mineralization is dispersed during weathering, low gold values (less than 1 g/t Au) are expected in soil, with anomalous samples regarded as those returning 0.1 g/t Au or higher. Rock chip sampling of outcrop or rock float samples (loose pieces detached from outcrop and dispersed by mechanical weathering processes) may return assay values higher than 1 g/t Au.

Assay results continue to come in, with the latest batch of 167 rock outcrop, float and soil samples being returned. The program sampled areas across three Exploration Permits located about four kilometer's to the south of Charters Towers with 147 sites sampled and 20 repeat or duplicate samples taken at selected sites for quality control. Samples comprised 1-2 kg of rock chips from outcrop or float and unscreened soil samples if outcrop was absent.

Sample site numbers were 770 to 916. The Company holds five Exploration Permits for Minerals (EPMs) surrounding Charters Towers, as shown below in Figure 2. Recent work has focused on three sub-blocks of EPMs 15964, 15966 and 18813 located four kilometres south of Charters Towers. Of the 167 samples taken, 21 samples contained detectable gold and of these, four were considered anomalous.

The anomalous samples are on the margin of a demagnetised zone in rocks mapped as uniform Towers Hill Granite. The demagnetised zone strikes north-northeast for about two kilometres and is about 300m wide and hosts five previously-mapped gold occurrences. The sampling has outlined anomalous gold results coincident with a demagnetised zone that hosts previously-mapped gold occurrences and warrants further investigation.

All the detectable gold samples are located in or marginal to the demagnetised zones. The demagnetised zones may indicate areas of the granite that have been altered by mineralising fluids, resulting in the oxidation of the magnetic mineral magnetite to the non-magnetic hematite, creating a demagnetised zone within the granite. The sampling program is ongoing with follow-up sampling of earlier stream sediment anomalies progressing to the southeast of Charters Towers and results will be reported in due course.

Charters Towers Project Overview: Citigold is an Australian gold mining and exploration company, operating on the high-grade Charters Towers goldfield in north-east Australia, 1,000 kilometres north of Brisbane, Queensland, and 130 kilometres south-west by sealed highway from the major coastal port of Townsville. The Company continues to advance its core activities including mine design and engineering, broad regional exploration programs, and working towards restarting its world-class gold mine.