Citigold Corp has signed a deal with China’s Henan Jinqu Gold to form a joint venture company to develop mines at Citigold’s Charters Towers gold project in Australia.

Under the MOU, Jinqu could buy up to a 50% interest in the joint venture, which will own granted mining leases with permits to mine as well as associated infrastructure.

The mine has a gold mineral resource of 1.8 million ounces.

The design and development work has been undertaken with the aim of producing 200,000oz per annum from the gold project.

The development of City mines is estimated to cost $70m and be completed in two years.