Capital Gold Announces a study Increase in Gold Reserves at the El Chanate Mine. Sonora. MexicoTUESDAY. SEPTEMBER 04. 2007 8:54 AM - PR NewswireNEW YORK. Sept 04. 2007 /PRNewswire-FirstCall via COMTEX/ -- Capital Gold Corporation () () is pleased to announce a major increase in the proven and probable gold reserves at its El Chanate Gold exploit in northwestern Sonora. Mexico. In announcing the results of the 8,300 meter change circulation drilling race that was initiated in February. Capital Gold head Gifford Dieterle said. "We are absolutely thrilled with the new numbers. The El Chanate gold reserve is now 832,000 ounces an increase of 70 percent from the previously stated reserve of 489,000 ounces. Similarly the recoverable gold ounces have increased by 67 percent from 332,000 to 556,000 ounces." The following delay provides the details:Mineral keep back Class Ore (tonnes) Grade (g/t) Contained Gold (oz.)Proven Mineral Reserve 26,693,000 0.68 581,000Probable Mineral keep back 12,768,000 0.61 251,000Proven and ProbableMineral Reserve 39,461,000 0.66 832,000"We are now a different company," Dieterle added. "This reserve increase will enable us to increase the life of the El Chanate mine from seven to eleven years under the revised mine intend. This will deepen our ability to change the company." Additionally the company believes that the deposit is still change state to the east and at depth. The proven and probable reserve tonnage has increased by 97 percent from 19.9 million to 39.5 million metric tonnes with a gold evaluate of 0.66 grams per tonne. The open pit stripping ratio is 0.6:1 (0.6 tonnes of waste to one tonne of ore). The mineral reserve is based on an updated resource block model and an updated exploit intend and mine production schedule developed by Independent Mining Consultants. Inc. (IMC) of Tucson. AZ. The updated pit design for the revised intend is based on a plant recovery of gold that varies by rock types but is expected to average 66.8%. A gold price of US$550 (SEC three year average as of July 31. 2007) per ounce was used to re-estimate the reserves compared with a gold price of $450 per ounce used in the previous reserve calculate. The stated proven and probable mineral reserves have been prepared in accordance with Canada's National equip 43-101 Standards of Disclosure for Mineral Projects and are equivalent to proven and probable reserves as defined by the United States Securities and transfer Commission (SEC) Industry Guide 7. The qualified person as defined by National equip 43-101 for this mineral reserve/mineral resource modify is Michael G. Hester. FAusIMM of IMC. The total amount of mineralized material contained at El Chanate net of the proven and probable mineral reserves is now approximately 40.1 million tonnes grading 0.66 grams/tonne. This estimate was prepared by IMC in accordance with SEC Industry command 7 based on a gold price of $650 per ounce and a 0.3 g/t gold cutoff evaluate and assumes open-pit mining and heap leaching of the ore. Gold production at El Chanate is currently near the feasibility study rate of 4,000 ounces per month. John Brownlie. COO said. "I am very proud of my aggroup at El Chanate. To achieve the feasibility study production rates after only a month in operation is a testament to their skill and dedication to the project. We will slowly go away to act up daily processing rates from 7,500 tonnes per day (tpd) to 10,000 tpd. This should boost our gold production toward 5,000 ounces per month and 60,000 ounces per year." Brownlie adds: "With this reserve increase we will now be analyzing what steps we need to undertake to effectively increase production rates and alter gold recoveries by conducting further metallurgical evaluate bring home the bacon at our laboratory facilities at the exploit." He also added that "Initially the increased plant throughput would not demand any capital expenditures since an additional ore crushing and stacking capacity had been factored into the original design."About Capital GoldCapital Gold Corporation (CGLD:CGC) is a gold production and exploration affiliate. 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 exploit is available on the affiliate's website.
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