Capital Gold Production Ramps Up Quickly at El Chanate Mine



    
    2,500 Ounces of Gold Produced in August
    

    NEW YORK, Aug. 30 /CNW/ -- Capital Gold (TSX: CGC; OTC Bulletin Board:  
CGLD) said today that the second shipment of dore gold has been sent to the
refinery.  This shipment of over 2,500 ounces of gold represents production
for the first 21 days of August. So far, the total mine production for the
first 26 days of production, is 3,175 ounces of gold.
    John Brownlie, Chief Operating Officer for Capital Gold says, "We are
close to the feasibility study production levels of 7,500 tonnes per day (tpd)
and 4,000 ounces of gold produced per month, which equates to 48,000 ounces of
production annually. Once those levels are met we will slowly start to ramp up
daily tonnage levels from 7,500 (tpd) up to 10,000 tpd. This should boost our
gold production toward 5,000 ounces per month and over 60,000 ounces per
year."  Brownlie adds:  "Right now, our cash costs to produce an ounce of gold
are inline with those stated in the feasibility study, or approximately $260
per ounce. But only after we've operated for several months will we have a
more exact number."
    We anticipate the results of the recently concluded drill campaign will
be available during the first week of September. Independent Mining
consultants of Tucson, AZ will be preparing the new proven and probable ore
reserve, an updated mine plan and 43-101 report for the Canadian authorities.
    
    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,
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
capacity and potential mine life.  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, 
pritchard@capitalgoldcorp.com; or Media, Victor Webb, or Madlene Olson, 
+1-212-684-6601, or Fax, +1-212-725-4709, marwebint@cs.com, both of Marston 
Webb International, 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