Capital Gold Announces Additional Secondary Crushing Module Is Operational



    
    Mine Throughput Now Exceeds 15,000 Tonnes of Ore Per Day

    
    NEW YORK, May 12 /CNW/ -- Capital Gold Corporation (TSX: CGC; OTC
Bulletin Board: CGLD) is pleased to announce that the additional secondary
crushing module is now installed and operational at its El Chanate mine in
Sonora Mexico. The crushing system now has the capacity to process over 15,000
tonnes of ore per day. The module was manufactured and installed by Excel
Machinery of Amarillo, Texas, the company that has provided all of the other
components in the system.

    John Brownlie, Capital Gold's Chief Operating Officer provides a brief
operational update: "The Secondary crushing module was delivered, installed
and became operational about a full month ahead of our initial schedule. It
also came in on budget. This now gives El Chanate the ability to process over
15,000 tonnes of ore per day, which is a significant increase to the current
daily rate of between ten and eleven thousand tonnes." Brownlie adds: "This
will help enable us to reach our stated goal of a production rate of 70,000
ounces per year in 2009."

    The company also announced that it has engaged SRK Consulting of Denver,
Colorado to provide a pit optimization study to determine whether or not
production rates can be increased further. At the same time, additional core
drilling will begin next month at El Chanate to test the current pit
boundaries. A second drill program will also begin at the Company's Saric
Exploration property located approximately 50 miles to the northeast of El
Chanate. The results from the first 19 holes drilled at Saric merited a second
round of drilling. This program is expected to begin in July.
    

    About Capital Gold
    
    Capital Gold Corporation (CGLD: CGC) is a gold production and exploration
company. Through its Mexican subsidiaries and affiliates, it owns 100% of the
El Chanate gold property in Sonora, Mexico. The Company has produced over
75,000 ounces of gold since inception. Further information about Capital Gold
and the El Chanate Gold Mine is available on the Company's website,
www.capitalgoldcorp.com.

    Statements in this press release, other than statements of historical
information, are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that
forward-looking statements are inherently uncertain. Actual performance and
results may differ materially from those projected or suggested due to certain
risks and uncertainties, some of which are described below. Such
forward-looking statements include comments regarding the establishment and
estimates of mineral reserves and non-reserve mineralized material, future
increases in mineral reserves, the recovery of any mineral reserves, grade,
processing rates and capacity, estimated future gold production, the impact of
any hedging arrangements, including the termination of such arrangements;
potential mine life and future growth of the company. Factors that could cause
actual results to differ materially include timing of and, unexpected events
during expansion; variations in ore grade, tonnes mined, crushed or milled;
delay or failure to receive board or government approvals; the availability of
adequate water supplies; mining or processing issues and fluctuations in gold
price and costs. There can be no assurance that future developments affecting
the Company will be those anticipated by management.

    Any forecasts contained in this press release constitute management's
current estimates, as of the date of this press release, with respect to the
matters covered thereby. We expect that these estimates will change as new
information is received and that actual results will vary from these
estimates, possibly by material amounts. While we may elect to update these
estimates at any time, we do not undertake to update any estimate at any
particular time or in response to any particular event. Investors and others
should not assume that any forecasts in this press release represent
management's estimate as of any date other than the date of this press
release. Additional information concerning certain risks and uncertainties
that could cause actual, results to differ materially from that projected or
suggested is contained in the Company's filings with the Securities and
Exchange Commission (SEC) over the past 12 months, copies of which are
available from the SEC or may be obtained upon request from the Company.
    



    




For further information:

For further information: Jeff Pritchard, Executive Vice President,
+1-212-344-2785, Fax: +1-212-344-4537, pritchard@capitalgoldcorp.com; or Kelly
Cody, Director Corporate Communications, +1-212-344-2785, Fax:
+1-212-344-4537, kelly@capitalgoldcorp.com, both of Capital Gold Corporation;
or for Media Inquiries: Victor Webb or Madlene Olson, both of Marston Webb
International, +1-212-684-6601, Fax: +1-212-725-4709, marwebint@cs.com  Web
Site: http://www.capitalgoldcorp.com

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CAPITAL GOLD CORPORATION

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