NEW YORK, Jan. 26 /PRNewswire-FirstCall/ -- Capital Gold Corporation (TSX: CGC; OTC Bulletin Board: CGLD) is pleased to announce that an additional crushing plant and leach pad are now operational at its El Chanate mine in Sonora, Mexico. These additions are expected to increase gold production to approximately 70,000 total ounces in 2010.
Capital Gold's President and Chief Operating Officer, John Brownlie, said the new crushing plant became fully operational on January 5 and stacking of ore had begun on the new leach pad as part of the Company's increased production plan.
Brownlie added that the new equipment would add significantly to production at the mine. "Since the crusher has been in operation, we have maintained leach pad feed rates of approximately 14,000 tonnes per day with peak days of 18,000 tonnes, meeting our expectations. With the additional ore under leach, the daily gold in leach solution reported to the recovery plant has increased to a rate of 60,000 ounces per year since January 5th. As we continue to stack additional ore on the new leach pad, we expect gold production to be in line with our production estimate of 70,000 ounces for calendar 2010."
Brownlie also commented on the progress at its Saric exploration property, located approximately 60 miles from El Chanate: "We expect to resume drilling on our Saric concessions on the 26th of January 2010."
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 mine located near the town of Caborca in Sonora, Mexico. The Company also owns and leases mineral concessions near the town of Saric, also in Sonora, that are undergoing preliminary exploration for gold and silver mineralization. Additional 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 plant upgrades, leach pad, crusher, drilling schedule, operating efficiency, estimated future gold production 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, strip ratio, tonnes mined, crushed or milled; 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.
SOURCE Capital Gold Corporation