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Capital
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PRESS
RELEASE
FOR
IMMEDIATE RELEASE
CAPITAL
GOLD ANNOUNCES RECORD GOLD PRODUCTION AT ITS EL CHANATE MINE
New
York,
October 13, 2008 - Capital Gold (TSX:CGC; OTC/BB:CGLD) announced today that
the
Company produced 4,350 ounces of gold in September at its El Chanate mine in
Sonora, Mexico, bringing the combined production for August and September to
a
record two month total of 9,100 ounces, over 1,000 ounces more than any previous
two months. Meanwhile cash costs for our first fiscal year (excluding royalties)
were kept to $224 an ounce - well below industry average of over $400,
contributing considerably to the Company’s bottom line.
In
making
the announcement, John Brownlie, Capital Gold’s Chief Operating Officer, said
this represented the Company’s best production figures since operations began at
El Chanate. “As a result of a strong team effort by a dedicated mine staff
working with improved process equipment and advanced operating practices, our
production has risen to an annualized rate of 55,000 ounces per year," stated
Brownlie.
Brownlie
said that despite these record achievements, Capital Gold, along with so many
other publicly traded companies, has been recently affected by extraordinary
market conditions. "We are acutely aware that our current share price in no
way
reflects the Company’s current strengths and growth potential. We, as well as
many other fundamentally sound companies, are caught up in events not of our
making and, as a result, our stockholders have been unfairly penalized. Be
assured, however, we are a strong and resilient company and we will continue
to
improve and grow. We have achieved a great deal and are well positioned to
restore shareholder value."
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The
Company has been producing gold for over a year and continually increases
production each quarter.
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New
drilling programs are underway at El Chanate to maximize proven and
probable gold reserves. A new 43 - 101 estimate is anticipated in
early
2009.
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All
upgrades are funded through operating cash
flow.
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Our
bank loan has been reconfigured and the Company has a $5 million
line of
credit available at its discretion.
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The
Company has a strong treasury of over $10
million.
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It
has achieved earnings in each of the first three fiscal
quarters.
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Given
this strong performance, it is imperative that Capital Gold obtain a listing
on
a major national exchange such as the American Stock Exchange (AMEX). To
facilitate a listing, the Company has proposed a reverse split. However, given
that the stock price is at a 52 week low, management reserves the right to
delay
enacting the split if it deems the resulting share price will fall short of
the
$2 required by the AMEX.
Executive
Vice President Jeff Pritchard stated, “We have opted to continue with the voting
process. It is important to note that, if the proxy is approved, it entitles
management to initiate the reverse split. At the same time, it also allows
management to delay or curtail the process completely." Pritchard added:
“Investors should rest assured that, in this important matter, we will take
the
same cautious approach that has resulted in a well funded and well managed
company with a bright future. The management at Capital Gold has many years
of
experience and, all can be certain, we will not be distracted by current events
in our quest to continue to grow and increase shareholder value."
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. 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. 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 rates and
capacity, estimated future gold production, 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.
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Contact:
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Jeff
Pritchard, Executive Vice President
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Tel:
(212) 344-2785
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Capital
Gold Corporation
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Fax:
(212) 344-4537
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Email:
pritchard@capitalgoldcorp.com
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Kelly
Cody, Director, Corporate Communications
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Tel:
(212) 344-2785
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Capital
Gold Corporation
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Fax:
(212) 344-4537
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Email:kelly@capitalgoldcorp.com
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Media
Inquiries
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Victor
Webb/Madlene Olson
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Tel:
(212) 684-6601
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Marston
Webb International
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Fax:
(212) 725-4709
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Email:
marwebint@cs.com
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