Capital Gold Corporation Expands Exploration at Its Saric Properties; Begins Construction of Additional Leach Pad at El Chanate Mine
NEW YORK, Sept. 9 /PRNewswire-FirstCall/ — Capital Gold Corporation (TSX: CGC; OTC Bulletin Board: CGLD) today announced that it will begin an expanded drill program at its Saric properties in northern Sonora, Mexico.
The properties are located near the village of Saric and are accessible by paved roads. Capital Gold acquired the 4,000 hectare El Oso project, which consists of leased and owned concessions, from local prospectors in early 2008.
Earlier this year, the Company completed preliminary exploration work consisting of geological mapping, systematic geochemical sampling of rock and soils, geophysical surveys, trenching and 32 reverse circulation drill holes totaling 2,560 meters.
“We have identified four anomalous zones within the concession groupings and have selected an area for a more intense drilling campaign,” said John Brownlie, Capital Gold’s Chief Operating Officer. The Sombreretillo-Cometa Zone has shown the best possibility for delineation of a near surface, open pit, oxide gold zone.
One of the areas of interest, the El Oso project area, is located over Cretaceous and Tertiary age volcanic and intrusive rocks. These volcanic rock rest on, or intrude, older coarse grain granodioritic rocks. Mineralization is structurally controlled and associated with low angle thrust/detachment zones, and with high angle strike slip zones which trend northeast. Mineralization is associated with strong iron oxide alteration, quartz pyrite stockwork veining and with calcite infilling along structures.
Layne Drilling has been selected to commence drilling by the end of September. SRK of Denver will provide quality assurance-quality control (QA-QC) guidance.
Meanwhile, work to expand the output of the Company’s operating El Chanate mine continues with the construction of a new leach pad. Permitting and site clearing has been completed and the construction contractor is preparing to begin earthworks. Golder Engineering of Tucson, Arizona will oversee construction activities and QA-QC for the project. The construction schedule anticipates that stacking ore on the new pad will commence in 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 property in Sonora, Mexico. 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, the impact of any hedging arrangements, including the termination of such arrangements; 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.
SOURCE Capital Gold Corporation