gold production and development
We expect to produce approximately 65,000 to 70,000 ounces of gold in fiscal year 2011. Sonora, Mexico
Capital Gold Corp. New York, NY. (TSX CGC) - (NYSE Amex: Symbol CGC) is a gold production and development company.
Capital owns the El Chanate gold property in Sonora, Mexico. The Company has produced 40,000 ounces of gold in its first year of operation.
"At our El Chanate mine, we are now producing gold at a cost less than half of our peers. In 2009, we project a 40 percent increase in gold production while still maintaining a low cost of production to approximately 70,000 ounces per year.” John Brownlie, Chief Operating Officer.
- The company has a strong treasury of over $10-million
- Produced 40,000 oz of gold in 2008, with cash cost of $255 per ounce
- The 2007 NI 43–101 updated proven and probable reserve is 832,000 ounces of gold.
- Deep drilling campaign (2008), five 300-metre-deep holes targeted a known mineralized zone, at depth. Previous drilling program which consisted of 26 reverse circulation holes.
- A new 43-101 estimate is anticipated in early 2009.
On August 2, 2010, the Company acquired Nayarit Gold, Inc. and merged it into Capital Gold's wholly owned subsidiary.
Capital Gold is focused on increasing production at the El Chanate open pit operations and advancing to production the Del Norte deposit in Nayarit, Mexico.
Capital Gold also owns and leases mineral concessions in Sonora that are undergoing preliminary exploration for gold and silver mineralization.
Through a wholly-owned subsidiary and an affiliate, Capital Gold Corporation owns 100% of 16 mining concessions located in the Municipality of Altar, State of Sonora, Republic of Mexico totaling approximately 3,544 hectares (8,756 acres or 13.7 square miles). We also own outright 466 hectares (1,151 acres or 1.8 square miles) of surface rights at El Chanate and no third party ownership or leases exist on this fee land or the El Chanate concessions.
Project construction began in August of 2006, and, in less than one year, El Chanate was producing gold. The project was completed on time and on budget. We began expansion of El Chanate in 2007 and financed all upgrades through operating cash flow. Once all advancements are completed, we anticipate reaching our gold production target of 70,000 oz in 2009.
The El Chanate deposit is still open to the east, and at depth.