16 Nov 2010 05:41

Anhui Geology and Mining forms joint venture with Aussie gold miner

Shanghai. November 16. INTERFAX-CHINA - Australian gold miner Citigold Corp. Ltd. (Citigold) will expand gold production around the core Charters Towers mining area in far north Queensland after forming a joint venture with Anhui Geology and Mining Investment Co. Ltd., Citigold announced Nov. 15.

According to the announcement, Anhui Geology and Mining will invest AUD 30 million ($29.67 million) over the next five years in return for a 50 percent interest in Citigold's Charters Towers exploration tenements. Exploration work is expected to begin in early 2011.

The joint venture surrounds but does not include Citigold's existing 148 square kilometer mining area, containing 10 million ounce of gold resources, a gold processing plant and associated infrastructure.

The JV agreement is subject to approval from Australia's Foreign Investment Review Board (FIRB).

The proposed mining area is expected to contain gold mines and various base metal ores.

- KY