Leaching Process Has Begun at Capital Gold's El Chanate Gold Mining Project in Sonora, Mexico



    
    Over 350,000 metric tons of ore stacked on the pads
    

    NEW YORK, June 21 /CNW/ -- Capital Gold Corporation (TSX: CGC; OTC
Bulletin Board: CGLD) said today that the leaching process has begun at the
company's El Chanate gold mining project, located in Sonora, Mexico. John
Brownlie, Capital Gold's Chief Operating Officer said, "It marks a formidable
milestone in the continuing growth of Capital Gold. The application of cyanide
solution to the leach pad has commenced. We have been crushing and stacking
ore since mid March, and during that period have stacked over 350,000 metric
tons of ore on the leach pad." Daily crusher production varied during the
commissioning period as refinements were made. "In an attempt to determine
what the maximum crusher output could be, the system was able to process
11,600 tons of ore in 19 hours of operation, which was 50% greater than the
feasibility design," Brownlie added.
    The average gold grade contained in the stacked ore is approximately 0.89
grams/metric ton. Capital Gold now anticipates the first gold production
within the next 30 to 45 days. The timing is controlled by the solution
percolation rate through the pad, and the rate of gold dissolution. Brownlie
went on to say, "As the project nears physical completion, we are pleased that
the foresight to tightly control and manage all aspects of the design,
procurement, and construction has resulted in a lower cost for the project,
and a more flexible and improved quality design than in the original
feasibility study."

    
    Exploration and drilling progress.
    
    The recent drilling program, which was designed to help increase the
proven and probable gold reserve at El Chanate, was completed in April. The
program ultimately expanded the total number of holes from 51 to 72. These
holes were targeted to intersect additional ore grade material adjacent to,
and on strike with, the main pit in all directions. They were also designed to
infill and expand on the existing drill hole database and to identify any ore
grade material that would connect the main pit mineralization with known
mineralization to the east of the main pit. Capital Gold has received all
assay results from the 8,200 meters of completed drilling. Results so far show
continuous mineralization east of the main Chanate pit area.
    The quality control of the drilling procedures and chain of custody of
the samples were audited by SRK Consulting of Denver, CO. Capital Gold now
plans on turning the data over to an independent third party to update the
resource and reserve estimate for the El Chanate mine as well as an updated
mine plan. A 43-101 compliant report for the Canadian authorities will also be
issued. Capital Gold's own in-house evaluation of the drilling and assaying
received to date is encouraging.

    
    Regional exploration.
    
    Capital Gold is currently revisiting areas of interest within its own
concession areas that, through preliminary geological evaluation, have shown
to warrant further examination. With the completion of the state of the art
assay and metallurgical laboratory on site, Capital Gold has generated
interest with land owners and others in the region looking to evaluate their
own properties. The company's intention is to grow the company through
acquisition or joint venturing of other prospects within Mexico. The
laboratory now allows Capital Gold to conduct preliminary evaluation of those
potential prospects.

    
    About Capital Gold
    
    Capital Gold Corp. (CGLD) is a gold exploration and development company.
CGLD, through its Mexican subsidiaries and affiliates, owns 100% of the El
Chanate gold property in Sonora, Mexico. During August 2006 CGLD completed
debt financing for the construction of the Chanate Mine. Engineering
Procurement and Construction Management activities commenced June 1, 2006.
Gold production is estimated to begin in July, 2007. Further information about
Capital Gold and the El Chanate Gold Mine, along with our updated corporate
video and new photos, is available on the Company's website,
http://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, construction cost
estimates, construction completion dates, equipment requirements and costs,
production, production commencement dates, grade, processing capacity,
potential mine life, results of feasibility studies, development, costs and
expenditures. 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, tons 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 of Investor Relations of 
Capital Gold Corporation, +1-212-344-2785, fax, +1-212-344-4537, 
pritchard@capitalgoldcorp.com; or Media, Victor Webb and Madlene Olson 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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