NEW YORK, Oct. 13 /CNW/ -- Capital Gold (TSX: CGC; OTC Bulletin Board:
CGLD) announced today that the Company produced 4,350 ounces of gold in
September at its El Chanate mine in Sonora, Mexico, bringing the combined
production for August and September to a record two month total of 9,100
ounces, over 1,000 ounces more than any previous two months. Meanwhile cash
costs for our first fiscal year (excluding royalties) were kept to $224 an
ounce -- well below industry average of over $400, contributing considerably
to the Company's bottom line.
In making the announcement, John Brownlie, Capital Gold's Chief Operating
Officer, said this represented the Company's best production figures since
operations began at El Chanate. "As a result of a strong team effort by a
dedicated mine staff working with improved process equipment and advanced
operating practices, our production has risen to an annualized rate of 55,000
ounces per year," Brownlie stated.
Brownlie said that despite these record achievements, Capital Gold, along
with so many other publicly traded companies, has been recently affected by
extraordinary market conditions. "We are acutely aware that our current share
price in no way reflects the Company's current strengths and growth potential.
We, as well as many other fundamentally sound companies, are caught up in
events not of our making and, as a result, our stockholders have been unfairly
penalized. Be assured, however, we are a strong and resilient company and we
will continue to improve and grow. We have achieved a great deal and are well
positioned to restore shareholder value."
1. The Company has been producing gold for over a year and continually
increases production each quarter.
2. New drilling programs are underway at El Chanate to maximize proven and
probable gold reserves. A new 43 - 101 estimate is anticipated in early
3. All upgrades are funded through operating cash flow.
4. Our bank loan has been reconfigured and the Company has a $5 million
line of credit available at its discretion.
5. The Company has a strong treasury of over $10 million.
6. It has achieved earnings in each of the first three fiscal quarters.
Given this strong performance, it is imperative that Capital Gold obtain
a listing on a major national exchange such as the American Stock Exchange
(AMEX). To facilitate a listing, the Company has proposed a reverse split.
However, given that the stock price is at a 52 week low, management reserves
the right to delay enacting the split if it deems the resulting share price
will fall short of the $2 required by the AMEX.
Executive Vice President Jeff Pritchard stated, "We have opted to
continue with the voting process. It is important to note that, if the proxy
is approved, it entitles management to initiate the reverse split. At the
same time, it also allows management to delay or curtail the process
completely." Pritchard added: "Investors should rest assured that, in this
important matter, we will take the same cautious approach that has resulted in
a well funded and well managed company with a bright future. The management at
Capital Gold has many years of experience and, all can be certain, we will not
be distracted by current events in our quest to continue to grow and increase
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 proven and probable reserve is
now 832,000 ounces of gold. The Company has produced 40,000 ounces of gold in
its first year of operation. Further information about Capital Gold and the El
Chanate Gold Mine is available on the Company's website,
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, 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,
+1-212-344-2785, or Fax: +1-212-344-4537, email@example.com, or
Kelly Cody, Director, Corporate Communications, +1-212-344-2785, or Fax:
+1-212-344-4537, firstname.lastname@example.org, both of Capital Gold Corporation;
or Media, Victor Webb or Madlene Olson, both of Marston Webb International,
+1-212-684-6601, or Fax: +1-212-725-4709, email@example.com, for Capital Gold
Corporation Web Site: http://www.capitalgoldcorp.com