Capital Gold Commences Deep Drilling Campaign

NEW YORK, NY - Capital Gold reported that the Company has initiated a deep drilling campaign at its El Chanate mine in Sonora, Mexico. A total of 1,500 meters is scheduled to be drilled over the next few weeks.
The core drill campaign consists of five 300 meter deep holes at an exploration target on the southern extremity of the El Chanate main pit called Dos Virgens. "The drilling at Dos Virgens will target a known mineralized zone, at depth," stated John Brownlie, Capital Gold's Chief Operating Officer. "The Company's strong cash position has enabled us to advance exploration activity at the mine with the intention of increasing proven and probable gold reserves."
Once this data has been compiled and analyzed, it will be added to results from a previous drilling program which consisted of 26 reverse circulation holes. Capital Gold will then combine all of this data to produce a revised proven and probable reserve estimate later this year.
Brownlie noted that steady progress has been made by the Capital Gold team. The Company produced approximately 4,750 ounces of gold and over 6,000 ounces of silver in August. These production totals are a significant increase over the previous months that averaged between 3,000-4,000 ounces. "We set a new record for monthly gold production in August," said Brownlie. "This production amounts to almost 5,000 ounces in gold and gold equivalents for the month. We are on an upward trend that we expect to maintain and improve upon throughout the year." Our production cost continues to run under $250 per ounce, still well below industry average. Brownlie added, "We are dedicated toward growing the Company by extending present reserves at El Chanate while looking for new gold projects in Mexico."
Capital Gold Corporation through its Mexican subsidiaries and affiliates, it owns 100% of the El Chanate gold property in Sonora, Mexico. The proven and probable reserve is now 832,000 ounces of gold. The Company has produced 40,000 ounces of gold in its first year of operation.