Over all this situation serves to benefit gold mining companies who are near or in the midst of production. Capital Gold Corp announced a week ago that the company was within 45 to 75 days of the start of production at the company’s El Chanate mining property in Mexico. With an aggressive drilling program, the company is working at possibly increasing the volume of gold ounces that it can produce within budget. Overall the current geopolitical situation is expected to stay the same if not escalate. Iran’s influence over the Middle East is growing, and they are unlikely to accede to Western demands without a multitude of concessions. This should work to keep gold prices higher, and benefit companies like Capital Gold, in that the possibility of outright confrontation looms over the Middle East.
About Capital Gold
Capital Gold Corp. (CGLD) is a gold exploration and development company. CGLD, through its Mexican subsidiaries, owns 100% of the El Chanate gold property in Sonora, Mexico. During August 2006 CGLD completed debt financing for the construction of the Chanate Mine. Engineering Procurement and Construction Management activities commenced June 1, 2006. Gold production is estimated to begin in the second quarter of 2007. Further information about Capital Gold and the El Chanate Gold Mine, along with current photographs, are available on the Company’s website, http://www.capitalgoldcorp.com .