Citadel Resource Group Limited (ASX:CGG)
Melbourne, July 21, 2009 AEST (ABN Newswire) - Citadel Resource Group Limited (ASX:CGG) announce its quarterly activities report for June 2009, highlights include; A Memorandum of Understanding (MOU) was signed with the National Water Company in Riyadh on the 20th of June. This MOU is for the provision of treated waste water to the Jabal Sayid mine and concentrator.
Concentrate specification and commercial information was sent to a number of commodity traders and smelters. Responses are due back in late July.
Debt financing continued with expressions of interest received from local Saudi Arabian banks and international banks.
Corporate
A Memorandum of Understanding (MOU) was signed with the National Water Company in Riyadh on the 20th of June. This MOU is for the provision of treated waste water to the Jabal Sayid mine and concentrator.
The Company held an Extraordinary General Meeting on the 7th of May, 2009 to approve the issue of shares to sophisticated or professional investors. The following share issues were approved, on the terms specified in the Explanatory Memorandum accompanying the notice of meeting:
1. The issue of 53,656,000 fully paid ordinary shares at an issue price of 10.5 cents.
2. The prior issue of 159,800,000 shares at an issue price of 10.5 cents per share, on 2 April 2009.
Cash at bank of A$25.192m at the end of the quarter. Expenditure during the quarter was A$6.7m which was below the budget of A$7.2m. Expenditure for the coming quarter is budgeted to be A$8.2m.
Drilling
Underground resource definition drilling at Jabal Sayid was completed during the Quarter. Commencing in February 2009 the infill program totaled 47 holes for 12,845m. 39 holes were completed in Lode 4 while 8 holes were drilled into Lode 2. Better results returned during the quarter include:
- 126m at 3.7% Cu, 0.5g/t Au, 22g/t Ag (BDH2040)
- 83m at 3.3% Cu, 0.3g/t Au, 17g/t Ag (BDH2047)
- 61m at 3.1% Cu, 0.5g/t Au, 20g/t Ag (BDH2054)
- 93m at 1.9% Cu, 0.3g/t Au, 10g/t Ag (BDH2056)
- 73m at 2.1% Cu, 0.4g/t Au, 19g/t Ag (BDH4031)
- 102m at 2.3% Cu, 0.5g/t Au,13g/t Ag (BDH4032)
JABAL SHAYBAN PROJECT
Continuation of the drilling programs to support an upgraded resource which will be finalised after the planned drilling programs have been completed.
Diamond core drilling to test the along strike, down dip, and down plunge potential of the copper mineralization below 100m.
Further metallurgical test work including column leach test work on diamond core samples.
Exploration and drilling at other targets within the Jabal Shayban and Jabal Baydan exploration license areas will continue.
BARI PROJECT
An exploration program has been designed to follow up on the geological mapping, geochemical sampling and alteration map generated from spectral data.
Regional exploration within the greater license area continues to assess both the ancient working sites and also the areas that the rock chip samples were collected.
Finance
Preparatory work for the debt financing of the Jabal Sayid copper project is well underway. Marketing of the project to potential financiers in the Middle East, Europe and Australia is ongoing and Citadel is working with both Saudi and international banks to assist with arranging of the project financing. International law firm Baker McKenzie has been retained to conduct a legal review of permits and consents required for the financing and development of the project. An initial review of the Definitive Feasibility Study, which will lead into the Independent Technical Due Diligence for the banks, has also taken place. Over the balance of this year the Company will work with a small number of local Saudi banks and international banks to arrange the project financing.
EXPLORATION DRILLING PROGRAM
SHAYBAN GOLD PROJECT (100%)
The Jabal Shayban Gold Project is located approximately 150km NE of Jeddah, and is accessed off a sealed highway. Previous work at Shayban includes a Measured and Indicated Resource of 1.8 Mt at 2.76 g/t Au, 23.11 g/t Ag and 0.46% Cu (Source Ma'aden, 1999 - Table 3) which remains open in all directions.
Both RC and diamond drilling continued at the project during the quarter, this drilling focused on better defining and extending the Shayban deposit. All holes intersected significant gold mineralization from surface, or near surface, and results continued to upgrade this exciting gold project. Citadel's 3 drilling campaigns over the past eighteen months has discovered multiple "stacked" high grade gold zones within the Shayban deposit.
BARI (100%)
Bari is located 38kms south-east of the Mahd Adh Dhahab gold mine and within 80kms of Citadel's Jabal Sayid project. Bari is marked by the presence of a large cluster of ancient gold workings covering an area of 4km by 2km. Within the project area 180 ancient workings have been identified as has significant slag dumps containing an estimated 3,000 tonnes of slag from the ancient smelting processes. Outcrop is limited within the project area which is significantly covered by a thin veil of sands and minor wadi gravels.
LAHUF (100%)
The Lahuf prospect is located about 10 km along strike from the operating Mahd Adh Daha gold mine (+5Moz). The geology is dominated by andesites and related tuffs of the Lahuf and Tuwal Formations that are locally intruded by felsic porphyry dykes and rhyolite plugs. The andesites and tuffs are intersected by a well-defined low-sulphidation epithermal vein system striking northwest-southeast. The veining system is subdivided into three domains: the Western, Central and Eastern Zones.
During the quarter, Citadel conducted an initial drilling program including percussion and diamond drilling. The best results include 2m at 1.60 g/t Au from 56m (LH005RC), 3m at 1.76 g/t Au from 25m (LH012RC) and 6m at 6.90 g/t Au from 27m (LH017RC).
For the complete Citadel Resource Quarterly Activities Report for June 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/61071-ASX-CGG-320706.pdf
Contact
Citadel Resource Group Limited
Ines Scotland (CEO)
Tel: +61-3-8680-4609
ines.scotland@citadelrg.com.au
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