Friday, 31st August 2007 (1802 views)

Capital Gold has announced that a shipment of 2,500 ounces of gold has been sent to the refinery from the El Chanate mine in Sonora, Mexico.

The volume represents the production from the first 21 days of August, with the mine having produced 3,175 ounces during the first 26 days of the month, something chief operating officer John Brownlie said makes the mine "close" to predicted levels.

A feasibility study at the mine showed an estimated 4,000 ounces of gold a month should be produced, with 7,500 tonnes per day (tpd) of material mined.

"Once those levels are met we will slowly start to ramp up daily tonnage levels from 7,500 [tpd] up to 10,000 tpd. This should boost our gold production toward 5,000 ounces per month and over 60,000 ounces per year," Mr Brownlie added.

Results of a recent drilling campaign will be made available shortly, the company has said, with early September the projected timeframe.

Capital Gold owns 16 mining concessions in the Mexican state of Sonora, according to its website.

 

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