Capital Gold Corporation Expands Exploration at Its Saric Properties; Begins Construction of Additional Leach Pad at El Chanate Mine


    NEW YORK, Sept. 9 /CNW/ -- Capital Gold Corporation (TSX: CGC; OTC
Bulletin Board: CGLD) today announced that it will begin an expanded drill
program at its Saric properties in northern Sonora, Mexico.

    The properties are located near the village of Saric and are accessible
by paved roads.  Capital Gold acquired the 4,000 hectare El Oso project, which
consists of leased and owned concessions, from local prospectors in early

    Earlier this year, the Company completed preliminary exploration work
consisting of geological mapping, systematic geochemical sampling of rock and
soils, geophysical surveys, trenching and 32 reverse circulation drill holes
totaling 2,560 meters.

    "We have identified four anomalous zones within the concession groupings
and have selected an area for a more intense drilling campaign," said John
Brownlie, Capital Gold's Chief Operating Officer.  The Sombreretillo-Cometa
Zone has shown the best possibility for delineation of a near surface, open
pit, oxide gold zone.

    One of the areas of interest, the El Oso project area, is located over
Cretaceous and Tertiary age volcanic and intrusive rocks.  These volcanic rock
rest on, or intrude, older coarse grain granodioritic rocks.  Mineralization
is structurally controlled and associated with low angle thrust/detachment
zones, and with high angle strike slip zones which trend northeast. 
Mineralization is associated with strong iron oxide alteration, quartz pyrite
stockwork veining and with calcite infilling along structures.

    Layne Drilling has been selected to commence drilling by the end of
September.  SRK of Denver will provide quality assurance-quality control
(QA-QC) guidance.

    Meanwhile, work to expand the output of the Company's operating El
Chanate mine continues with the construction of a new leach pad.  Permitting
and site clearing has been completed and the construction contractor is
preparing to begin earthworks.  Golder Engineering of Tucson, Arizona will
oversee construction activities and QA-QC for the project.  The construction
schedule anticipates that stacking ore on the new pad will commence in January

    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. 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, the impact of
any hedging arrangements, including the termination of such arrangements;
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: Kelly Cody, Director Corporate Communications,
Capital Gold Corporation, +1-212-344-2785, Fax: +1-212-344-4537,; Media Inquiries:  Victor Webb, or Madlene Olson,
both of Marston Webb International, +1-212-684-6601, Fax: +1-212-725-4709, Web Site:

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