Citigold Corporation


ENZED KEEPS GOLD MINER OPERATING 24-7

With the price of gold averaging $1,000 an ounce gold miners throughout Australia have ramped up production to take advantage of the unprecedented demand.

Citigold Corporation is one such miner, who's Charters Towers gold mine is set to lift production significantly from 25,000 ounces in 2009 to approximately 85,000 ounces in 2010.

The Charters Towers deposit consists of good grade ore which is hosted in very strong granodiorite rock that has a compressive strength of 150 m.p.a., or five times the strength of commercial grade concrete making it ideally suited for mechanised mining.

Access to the mine is by one decline that measures 5 metres by 5 metres to allow a combination of Atlas Copco and Caterpillar mining equipment to extract the ore that is mined by modern drill and blast techniques.

BACKGROUND

Citigold Corporation is an Australian gold mining company producing gold from Australia's richest goldfield at Charters Towers in north eastern Australia. With over $120 million invested in the goldfield, Citigold Corporation plan to build up gold production in stages from 25,000 ounces in 2009 to around 300,000 ounces annually by 2012.

The mine uses modern drilling and blasting techniques and operates a fleet of Atlas Copco and Caterpillar mining equipment that operates in 12 hour shifts, 24 hours a day, seven days a week.

Because of the mine's location and the harsh and tight operating conditions underground, Citigold has their own fitters on duty to minimise down-time.

Following a review of their supply logistics Citigold appointed locally based ENZED Charters Towers to look after all the mine's hydraulic hose and fitting needs - resulting in better service, better quality and a better price...

The blast hole drilling work is carried out by large Atlas Copco single or large twin boom Jumbos, depending on the available room. The drill holes are then loaded with specially formulated high impact explosives to break the rock, that is then moved by Load Haul Dump loading into MT-5010 trucks for transfer to the mine's surface for subsequent processing.

According to Citigold's Charters Towers Maintenance Supervisor, Wayne Coffison, the mining gear is worked pretty hard, running two shifts over 24 hours, seven days a week in a harsh and tight operating environment, so the hydraulic hose replacement rate on most of the underground equipment is high – especially on the Jumbo drill rigs that run at 200 bar.

"To minimise down-time we have a team of our own fitters on duty during each shift and maintain an extensive range of hydraulic hoses and fittings on consignment to ensure that we always have sufficient stock on hand to handle any contingency.

"Looking to improve the supply logistics we received a timely approach from the local ENZED Branch Manager, Ashley Bartlett, who asked if he could put together a proposal to look after all our hydraulic hose and fitting needs".

Ashley reviewed Citigold's product usage and put together a comprehensive tender that not only gave them access to a superior range of Parker Hannifin hoses and fittings but at a better price than they had been paying. It also provided them with a level of support here in town that meant they had access to stock and technical support whenever they needed it.

As part of ENZED's proposal they offered to conduct weekly stock checks and replenish whatever had been used, which was a big improvement on the previous suppliers service, plus Ashley was able to arrange the stock checks towards the end of the week so Citigold would be covered over the weekends.

"Since the switch to ENZED they have kept us in supply of two and four wire hoses and JIC adaptors and fittings without any out of stock issues. They've also provided us with a level of support for special orders not previously available, which has made my life a lot easier.

"With ENZED nothing is too much trouble, all we have to do is call them and they'll deliver whatever we need. Or if we need something special that involves specific orientation of the elbows they'll make it up for us at the ENZED Service Centre in town pretty much straight away – even after hours or on the weekend.

"In the past two years we've developed a good working relationship that's built on trust and their never-say-no approach to business. We had an incident recently involving a blown hose tail on one of the mine trucks and after an emergency call to ENZED they went the extra mile for us and tracked down the required fitting – that turned out to be the only one in Australia and had it to us the next day, saving us days of downtime.

"ENZED's approach has been extremely professional right from the start, even down to organising a Parker Hannifin trainer to visit the mine to conduct a comprehensive training course for all the fitters.

"Citigold and ENZED agree that since switching to ENZED the Parker Hannifin hose fitting system has reduced wastage considerably as it's much easier to use than the previous supplier's system and is virtually fool proof.

"By moving their business to ENZED Citigold have not only saved money and got better quality products that are easier to use, they also have a locally based supplier who is customer focussed and works with us to get the job done – no matter how tough the challenge ENZED is there," Wayne added.
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