Business Description:
Citigold Corporation Limited (CTO) is a gold mining company producing gold from Australia's goldfield at Charters Towers in Queensland. The Charters Towers Gold project currently has an inferred mineral resource of 10Moz (23Mt @ 14g/t Au).

Strategy Analysis:
The main focus of CTO is on unlocking shareholder value from the gold assets at Charters Towers. In 2003, CTO completed the acquisition of Great Mines Limited. This strategic move has placed 100% ownership of the Charters Towers goldfield in the hands of CTO. The Company has commenced an extensive drilling program with several diamond core drill rigs on the major east-west multi kilometre long parallel reef lines with the goal of establishing a 50m oz Au field. CTO want to efficiently expand gold production targeting a 50% cash surplus on gold revenues through mechanised mining of the high grade reefs. The Charters Towers deposits will be developed through several inter-related and adjacent mines feeding a common gold extraction plant. CTO plan tobuild up gold production from its underground mines in stages towards 300,000oz annually by 2012. Citigold Corporation reported negative cash flow of $3.64m for quarter ended 30 September 2009. Operating cash flow for the period was $(4.48m). Payments for exploration and evaluation were $(1.62m). Investing cash flow was $(58,000). Financing cash flow was $898,000. Cash in hand at the end of the quarter was $209,000.