Capital Gold Corporation Announces Second Fiscal Quarter Financial Results



    
    Gold Sales and Net Income Up While Cash Costs of Production Remain Well
    Below Industry Average
    

    NEW YORK, March 14 /CNW/ -- Capital Gold (TSX: CGC; OTC Bulletin Board:  
CGLD) reported today that gold production, revenue and net income were up for
the second fiscal quarter, ending January 31, 2008, as compared to the first
quarter.

    
    -- Through January 31, 2008, net sales were $8,043,000 based on 9,550
       ounces of gold sold at an average price of $843, as compared to sales
       of $6,526,000 based on 9,194 ounces sold at an average price of $711
       for the first quarter, a 23% increase. (The London Bullion Market
       Association average gold PM fix was $835 for the second fiscal quarter,
       ended January 31, 2008).
    -- Net income was approximately $2,126,000 in the second quarter, which
       equates to a fully diluted income per share of $0.01. Net income was
       $1,747,000 in the first quarter. Net income for the six months ended
       January 31, 2008 was $0.02.
    -- Cash costs of just $246 were achieved for the six months ending
       January, 31, 2008 -- well below the gold industry average of
       approximately $371 per ounce.
    
    John Brownlie, Capital Gold's Chief Operating Officer, said: "The pad
area available for leaching during January and February was significantly less
than the amount of new ore (558,000 tonnes) that was stacked. This was due to
a revised stacking plan (because of pad expansion) and upgrading of the
solution pumping system. As of mid March, we have the increased pumping
capacity to the leach pad, and have returned to the original stacking plan.
During the third quarter, we will extract gold from this ore. Concurrently, we
have begun the expansion of the ADR plant." As of January 31, there are
approximately 24,000 recoverable ounces of gold contained in the leach pads
that should be recovered during calendar year 2008.
    "Once these projects are complete they will eliminate the restrictions
limiting our current gold production to 50,000 ounces per year. We anticipate
these upgrades will enable us to reach 70,000 ounces of gold production in
2009. The leach pad expansion and other upgrades are being funded from cash
flow generated by our operation," Brownlie added
    A conference call discussing the second quarter results; will be held on
Friday March 14th, 2008, at 10:00 AM Eastern Time which will be accessible
through dial-in conferencing.
    Dial-In Numbers: 1-800-785-6502 (US)

    
                     1-212-231-2901 (International)
    
    Please dial in and register at least five minutes prior to the call.
Chris Chipman, Chief Financial Officer, John Brownlie, Chief Operating Officer
and Jeff Pritchard, VP Investor Relations will host the conference call. There
will be a question and answer period at the end of the call. The call will be
archived and available on the Company's web site.
    
    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. 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, 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, VP-Investor Relations of
Capital  Gold Corporation, +1-212-344-2785, Fax: +1-212-344-4537, 
pritchard@capitalgoldcorp.com; or Media: Victor Webb, or Madlene Olson of 
Marston Webb International, +1-212-684-6601, Fax: +1-212-725-4709, 
marwebint@cs.com; or Investor Relations in Canada: Robin Cook, Account 
Manager of CHF Investor Relations, +1-416-868-1079, Fax: +1-416-868-6198, 
robin@chfir.com Web Site: http://www.capitalgoldcorp.com

Organization Profile

CAPITAL GOLD CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890