Capital Gold (TSX: CGC; OTC Bulletin Board: CGLD) reported today that the Company has produced an increased amount of gold in December having produced approximately 4,200 ounces of gold in Sonora, Mexico. In addition, their cost to produce the gold is below the gold industry average.
Capitol Gold’s current fiscal quarter will end January 31 and so far the average sale price has been $816 an ounce. This is up from last year of $711 per ounce for the same quarter. Currently, the company has produced 7,200 ounces for the fiscal quarter and their latest sale of gold was finalized at $860 per ounce.
Chairman for Capital Gold, 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 COO, John Brownlie, commented, “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.”
He continued to add, “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% more ore than the feasibility study rates. Ultimately this increased tonnage crushed will result in greater gold production and lower operating costs.”
Capital Gold Corporation (CGLD:CGC) is a producer and explorer for gold. The Company owns the El Chanate gold property in Sonora, Mexico through its Mexican subsidiaries and affiliates,
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