Citigold Corporation operates the Warrior gold mine at Charters Towers, northern Queensland, mining narrow quartz veins (0.1 to 2 m wide) in granodiorite by long hole open stoping on levels 15 m apart. Access is by decline and cross-cuts with on-ore development drives._x000D_
The mineralisation comprises Palaeozoic mesothermal quartz veins containing gold, pyrite, sphalerite and galena, hosted by the Ordovician age Towers Hill Granite. The gold grain size is variable from 1 to 500 m with 1 m face samples up to 800 ppm Au, and average run-of-mine grades of 10 to 14 ppm. Despite the spectacular gold tenor, little visible gold is present._x000D_
Gold grades are highly variable presenting challenges in ore reserve estimation. Tonnages are discounted by 70 per cent to allow for the low payabilities (30 to 50 per cent) of the veins. Estimation techniques allow high confidence in overall global grade estimates but poor reliability on a local scale (25 m). Kriging ranges as low as 5 - 8 m means that obtaining a Proved Ore Reserve by diamond drilling is not economically feasible, and broad-scale mine planning decisions are made at the Inferred Mineral Resource stage and mine design work at the Probable Ore Reserve stage. Proved Ore Reserves can only be estimated after underground development has proceeded through the mineralised body with levels at 15 m vertical spacing sampled at 2 - 3 m intervals along the level. However, reconciliations between actual gold produced and earlier resource estimates produce workable results._x000D_
A further three mines are scheduled to be developed underneath the city of Charters Towers.