Capital Gold increases production from El Chanate, Mexico

Capital Gold Corp said it has produced 13,646 ounces of gold in the second fiscal quarter of 2009 to end-January at its El Chanate mine in Sonora, Mexico, which represents a 15 percent rise over the preceding quarter and a 39 percent rise from the second quarter a year earlier.

Gross proceeds from the quarter were approximately US$11 million on 13,277 ounces of gold sold, with an average sale price of approximately US$827 per ounce. This represents an increase of gross proceeds of 20 percent quarter-on-quarter and a 36 percent rise year-on-year.

Capital Gold is a gold production and exploration company and owns 100 percent of the El Chanate gold property through its Mexican units and affiliates.