Melbourne, Feb 23, 2009 AEST (ABN Newswire) - New drill results announced today for Citadel Resource Group Limited's (ASX:CGG) flagship Shayban gold project in Saudi Arabia have provided a further boost to the accelerated gold production plans outlined by the Australian company earlier this month.
The latest drill results continue the high grade intersections of primary and oxide gold at Citadel's 100% owned Shayban project and include:-
- 35 metres at 13.48 g/t gold from 9m (including 10m at 32.70 g/t gold from 11m)
- 11m at 1.83 g/t gold from 40m (SH074RC)
- 6m at 3.21 g/t gold from 59m (SH074RC)
- 2m at 4.52 g/t gold from 34m (SH076RC)
The gold assays are from results of a further four reverse circulation ("RC") drill holes of the Company's completed 36-hole drilling program. The latest drill holes all intersected significant gold mineralization from surface, or near surface.
The Shayban mineralisation - which has already previously returned bonanza grades, including one exceptional zone of 39 metres at 38 g/t gold - has been documented over a strike length of over 550m and is still open along strike, down dip and down plunge.
Citadel said today that a diamond drilling programme is planned to commence next week to explore the down dip and strike extensions of the ore body. Metallurgical samples will also be obtained.
Today's results follow Citadel's announcement of plans for rapidly accelerated gold production from a cluster of world-class projects on the doorstep of its massive Jabal Sayid copper-zinc resource in Saudi Arabia.
In addition to ongoing resource drilling at Jabal Sayid and its two largest gold projects, Shayban and Lahuf, Citadel outlined fast-tracked exploration plans for three other gold projects - starting next month with the launch of a drilling campaign at the neighbouring Bari prospect.
The new schedule is geared towards maiden production from Jabal Sayid of 50,000 ounces-to-60,000 ounces next year, rising to more than 100,000 ounces when production at the rich Shayban gold project comes on stream in 2011.
"We have decided to push ahead aggressively with several simultaneous gold programs, to take advantage of the current availability of drilling outfits and the very strong medium to long-term global outlook for gold," Citadel's Chief Executive Officer, Ms Ines Scotland, said today.
Following the launch of drilling at Bari - where initial rock-chip sampling has returned significant results of up to 17.6 g/t gold - Citadel will commence drill campaigns at its Murayjib and Hail projects, which both show similarly promising signs of large gold systems.
The Company currently has two drill rigs testing the historic Lahuf Gold Mine, 40km from Jabal Sayid, with assay results expected in the next few weeks.
At Jabal Sayid, metallurgical test work is currently underway to test the Oxide Gold Cap, together with a scoping study to exploit the Shayban oxide material on the same heap leach facility.
"The company's gold exploration program is two pronged, targeting large, multi-million ounce gold and precious metal deposits, while developing known deposits that are amenable to cost effective mining and processing in the shorter term," Ms Scotland said.
Although better known for its black gold, the "Arabian Shield" region has a rich history of gold mining, with over 1,000 recorded ancient sites of gold and copper mining and some 6,000 documented mineral occurrences within Saudi Arabia's borders.
In addition to its 50%-owned Jabal Sayid licence, Citadel is 100% owner of nine exploration licences - eight of which contain historic gold occurrences and are considered highly prospective for the precious metal.
Contact
Citadel Resource Group Limited
Ines Scotland (CEO)
Tel: +61-3-8680-4609
ines.scotland@citadelrg.com.au
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