Additional Crushing Plant And Leach Pad Operational At El Chanate

 

NEW YORK, NY - Capital Gold Corporation reported 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.

The company’s address is 76 Beaver Street, 14th floor, New York, NY 10005, (212) 344-2785, fax: (212) 344-4537, email: [email protected].