Drilling program designed to increase reserves on schedule
NEW YORK, March 13 /CNW/ -- Capital Gold Corporation (TSX: CGC; OTC
Bulletin Board: CGLD) said today that mining operations will begin this week
at the company's El Chanate gold mining project, located in Sonora, Mexico.
Gifford Dieterle, Chairman of Capital Gold said, "The process of stacking
crushed ore on the leach pads will begin this week. We have been stacking
screened ore on the pads for several weeks for use as overliner material, but
now that we are ready to commence stacking crushed ore, the production process
has truly begun."
John Brownlie, Capital Gold's Chief Operating Officer said his production
team will be stacking crushed ore for several weeks before they start applying
the cyanide solution. "Once the solution application begins, we are probably
anywhere from 45 to 75 days away from the beginning of actual gold production
at El Chanate," he said. The El Chanate mine construction is nearly complete.
Both the electrical system and the crushing system have been hot commissioned.
The only material remaining system, the ADR plant (which extracts the gold
from the cyanide solution), should be completed in April. Gold production will
follow shortly thereafter. The project continues to stay within budget.
Meanwhile, an aggressive drilling program, designed with the intent of
bringing additional gold ounces into the reserve totals, is moving along at a
rapid pace. To date, 33 holes have been drilled, totaling 4,650 meters. The
average depth has been 141 meters. Already 3,050 samples have been collected.
Assay results should start coming in later this month.
"We started drilling in the area south of the 'East Pit' and we have
drilled between the two planned pits, and around the south side of the main
planned pit. Drilling has focused on areas close to the pit limits, outside
the reserve blocks. Drilling along the south side of the pit has shown
mineralization that may extend further south, especially on the southwest side
of the pit. Drilling on the west side of the pit also looks promising. Nine
additional holes have been added to the program, bringing the new total to 60
holes," Brownlie added. The remaining holes left to be drilled will be
exploration holes concentrated on the eastern extremities of the known ore
body. The drilling program is expected to be concluded in early April.
About Capital Gold
Capital Gold Corp. (CGLD) is a gold exploration and development company.
CGLD, through its Mexican subsidiaries, 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 the second quarter of 2007. Further information about
Capital Gold and the El Chanate Gold Mine, along with current photographs, are
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-Investor Relations of
Capital Gold Corporation, +1-212-344-2785, or Fax: +1-212-344-4537,
email@example.com; or Media Inquiries - Victor Webb, or Madlene
Olson, both of Marston Webb International, +1-212-684-6601, Fax:
+1-212-725-4709, firstname.lastname@example.org Web Site: http://www.capitalgoldcorp.com