CAPITAL GOLD CORP

23 June 2009resource reserve update▲ GoodMajor

Capital Gold reported an updated reserve estimate for El Chanate from its consultant IMC: 43.1 million tonnes at 0.66 g/t, with 913,400 contained ounces and about 586,000 ounces expected to be recovered (64.2% recovery). It uses a $750 gold price versus $550 in the prior estimate, and replaces the 832,000 oz reserve in the earlier context. The company also says the new crusher/conveyor (May 2009) and leach pad/ADR work (January 2009) should lift output to about 70,000 oz per year in 2009.

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8 July 2008farm in farm out agreement▲ GoodMajor

On July 1, 2008 AngloGold Ashanti North America told the company it would not use its one-time right to take a 51% interest in El Chanate under the December 15, 2000 Stock Purchase Option Agreement. This resolves the back-in right attached to the 2001 acquisition, so the company keeps 100% of El Chanate. Its chairman called it the best possible outcome and said the company wants to grow through acquisition, exploration and possible expansion of El Chanate. The press release states proven and probable reserves of 832,000 ounces of gold.

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