Ann: Jabal Shayban - Maiden Resource , page-2

Copy of todays announcement. Keep them coming CGG.

Cheers Waltz

ASX RELEASE Jabal Shayban Maiden Resource

Jabal Shayban Project reports a 467,000oz gold equivalent (Au-Ag) Resource - 2 June 2010

Citadel Resource Group (ASX:CGG) is pleased to announce a maiden resource of 467,000oz (Au Eq), including 402,000oz Au from its Jabal Shayban Gold Project, located in the Kingdom of Saudi Arabia.

Jabal Shayban readily lends itself to exploitation by open cut mining methods. Historical cyanide and ongoing floatation metallurgical test work has been encouraging, with both high recovery rates and concentrate grades achieved.

Citadels Managing Director, Ines Scotland commented:

Jabal Shayban is only an indication of what Citadel has both in precious and base metals in our portfolio. The Jabal Shayban project is connected to the Jabal Baydan project for which we reported some great drilling results in our last quarterly. As an area this is hugely prospective and will most likely be our next set of projects into operation after Jabal Sayid.

This estimate has been produced from Citadels latest drilling campaigns combined with historic BRGM (Bureau de Recherch Geologiques et Minieres) and Maaden drilling programs.

Significant drilling intercepts, previously released from within the resource include:

39m at 37.83g/t Au from 5m (SH031RC) 28m at 14.17g/t Au from 14m (SH049RC) 41m at 22.75g/t Au from 0m (SH052RC) 10m at 24.04g/t Au from 41m (SH057RC) 32m at 15.22g/t Au from 36m (SH067RC) 35m at 13.48g/t Au from 9m(SH068RC)2

Exposed over a +500m length, 75m width and 120m depth extent, Jabal Shayban deposit is hosted within a sequence of weakly metamorphosed, felsic volcanic rocks. The prospect area is marked by an extensive alteration zone and gossanous outcrops. Copper, gold, silver and lesser zinc mineralisation is confined to south plunging, westerly dipping lodes, which remain open down plunge.

Two principal mineralisation styles are observed at Shayban including:

1. A predominant gold-rich volcanic-hosted massive sulphide (VHMS) associated with conformable massive to semi-massive sulphides, and lesser stringer and disseminated sulphides.
2. Disseminated auriferous pyrite hosted by light grey sericite-altered epiclastic rocks associated within the Shayban Shear Zone.

The size and tenor of this initial resource estimate at Jabal Shayban provides Citadel with encouragement to expedite its exploration programs within the greater Wadi Shugea area. This project comprises three contiguous Exploration Licences that cover 203km2 of the highly prospective Neo-Proterozoic Samran-Shayban volcanic belt.

Mineral Resource Evaluation
The Jabal Shayban resource model is constrained within a single northwest trending mineralised wireframe, with a shallow southerly (20 degree) plunge and moderate, westerly (45 degree) dip. For estimation purposes, the prominent northern high grade zone was selectively domained and interpolated, with its sample grades of up to 605g/t cut to a more conservative 35g/t Au.
Estimation analysis was completed using both Micromine and Isatis software packages, using inverse distance squared and ordinary kriging techniques. Resource classification has complied with the reporting requirements of the JORC (2004) Code, with tonnage-grade estimates tabulated herewith at 0.5g/t gold cut-off grade.

1) Rounding errors may occur
2) Gold equivalency based on the formula Au Eq = Au+0.014 * Ag