Capital Gold Notifies AngloGold That Contained Resources at El Chanate Exceed Two Million Ounces



    NEW YORK, Jan. 30 /CNW/ -- Capital Gold (TSX: CGC; OTC Bulletin Board:  
CGLD) has notified AngloGold Ashanti North America (AngloGold) that pursuant
to the terms of the Stock Purchase Option Agreement dated effective December
15, 2000, between AngloGold and Capital Gold Corporation, Capital Gold has
made a good faith determination that the drill indicated resources at the El
Chanate gold mine now exceed two million ounces of contained gold. The term
"drill indicated resources" is defined in the agreement. A drill indicated
resources number does not rise to the level of, and should not be considered
proven and probable reserves as those terms are defined under SEC guidelines.
    AngloGold now has 180 days to determine whether or not it will choose to
exercise its one time back-in right to acquire a 51% interest in the El
Chanate project, for a purchase price equal to two times the total project
costs, as defined in the agreement, since 2001.
    
    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 construction,
expansion and start-up; 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, or Fax, +1-212-344-4537, 
pritchard@capitalgoldcorp.com; or Media Inquiries, Victor Webb or Madlene 
Olson, +1-212-684-6601, or Fax, +1-212-725-4709, both of Marston Webb 
International, marwebint@cs.com; or Investor Relations in Canada, Robin Cook, 
Account Manager of CHF Investor Relations, +1-416-868-1079, or Fax, 
+1-416-868-6198, robin@chfir.com, all for Capital Gold Corporation 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