CAPITAL GOLD - TECH REPORTS - ANALYST PICKS - MANAGEMENT
 GEOPOLITICAL RISK

   

Greg McCoach of Mining Speculator - ***STRONG BUY***
Date: January, 2008

Capital Gold has produced approximately 4,200 ounces of gold in December from its El Chanate mine in Sonora, Mexico. Total production for the current fiscal quarter, which ends Jan. 31, now stands at 7,200 ounces. The average sale price for this fiscal quarter has been approximately $816 per ounce, as compared with $711 per ounce for the first quarter. Production costs are still running well below industry average. The company’s latest sale of gold was completed at $860 per ounce. Production for the first full year of operation is estimated to be 50,000 ounces. Capital Gold chairman Gifford Dieterle said: “Our December production figures indicate that we are ahead of where we were during the same period in the first quarter of operation. That, combined with the increasing gold price, makes me believe that our second quarter performance will be better than our very successful first quarter.”

Capital Gold has produced approximately 4,200 ounces of gold in December from its El Chanate mine in Sonora, Mexico. Total production for the current fiscal quarter, which ends Jan. 31, now stands at 7,200 ounces. The average sale price for this fiscal quarter has been approximately $816 per ounce, as compared with $711 per ounce for the first quarter. Production costs are still running well below industry average. The company’s latest sale of gold was completed at $860 per ounce. Production for the first full year of operation is estimated to be 50,000 ounces. Capital Gold chairman Gifford Dieterle said: “Our December production figures indicate that we are ahead of where we were during the same period in the first quarter of operation. That, combined with the increasing gold price, makes me believe that our second quarter performance will be better than our very successful first quarter.”

Capital Gold’s chief operating officer, John Brownlie, said: “The leach pad expansion is going as planned, and we are currently stacking ore on the first of the newly constructed panels. We will continue construction of the leach pad through the first half of 2008. This will give the company sufficient leach pad capacity for the next five years, even at the planned increased production rates. Assembly of additional leach pad stacking conveyors will begin this week and is anticipated to be completed during January.” Mr. Brownlie added: “Throughout the initial period of operation, we have continually focused on

maximizing our production through operator training and adjustments to the crushing circuit. This has paid off because we are consistently crushing 30 per cent more ore than the feasibility study rates. Ultimately, this increased tonnage crushed will result in greater gold production and lower operating costs.”