*  
       

Capital Gold Corporation is a gold
exploration company. CGLD owns the El
Chanate gold property in Sonora, Mexico.
During 2003 CGLD contracted M3 Engineering & Technology of Tucson, Arizona to conduct a detailed Feasibility Study on the Chanate property. Previously known as Leadville Mining & Milling Corporation CGLD is well on its' way to opening a new low-grade open-pit Au deposit in Northern Sonora now that it has teamed up with Grupo Minera FG of Hermosillo.  Remember these are the contract miners that made La Colorada work all these years.

Capital Gold Corporation    [CGLD:OTCBB]  

Operates in Mexico through its' 100% owned subsidiary Oro de Altar S. A. de C.V. 

El Chanate, Sonora.  At the end of a successful 90 day due diligence period the company has reached a definitive agreement with AngloGold North America Inc., and its subsidiary AngloGold (Jerritt Canyon) Corp. on the acquisition of their wholly owned Mexican subsidiary Minera Chanate S.A. de C.V. Minera Chanate's assets consist of 12 Mexican mineral concessions in the states of Sonora and Chihuahua. The 12 claims in the states of Sonora and Chihuahua total over 230,000 acres (370 square miles). One of these groups is La Gloria mentioned above. Note that Leadville sold Minera Chanate S.A. de C.V. to a privately held Mexican corporation for $2,131,616 dollars on 10-Apr-02. In doing so they kept all the mininig assets inside of Oro de Altar S.A. de C.V.

The most advanced concession is the El Chanate gold property, located approximately 25km northeast of Caborca, in Sonora, Mexico. Previous exploration results, consisting of a total of 199 drill holes, suggest the presence of a deposit of nearly 35 million metric tons or about one million ounces at a gold grade of 0.90 gm/tonne, or about one million ounces with a stripping ratio of 1.4 to 1.

Three other concessions, El Antimonio, Banco de Oro and Aries all show high potential. The Company is proceeding with modeling, mapping and field examination on these properties. The eight remaining concessions will continue to be evaluated over the next several months. 

Press Release 15Feb01
Press Release 18Dec00

Minera Chanate S.A. de C.V. is a 100% owned subsidiary of AngloGold that controls the 26 square mile El Chanate Property of Cia. Minera Independencia who began work in the area in 1992 (after Kennecott kicked the tires for a few years prior to that time). The property consists of 15 concessions, 2 of which have been elevated to exploitation. In addition 100% control of the surface is established. This deposit is both geologically similar and adjacent to Newmont/Peņoles' La Herradura Gold Mine. A mineable reserve of 9 M tonnes grading 1.5 gpt has been defined by 324 RC holes and 9 core holes. The total resource for the two deposits found to date is reportedly around 900,000 oz; however the second deposit tops out at 150m beneath the surface and may not be economic at this time. 

(Note: Standard Mining Company kicked the tires out here between May and August, 2000 and decided to take a pass. Standard believed it could have become a gold producer within 24 months and that there was still significant room for the deposit to grow. Initial studies carried out during April, 2000 by Mintec of Tucson for Standard as part of their due diligence showed a global resource of 34,800,000 tonnes grading 1.05 gpt at a 0.5 gpt cutoff. (or around 1.175 million ounces).  Metallurgy was tested by two 7-tonne bulk samples shipped to Kappes, Cassiday & Assoc. in Reno. Two 24-inch run-of-mine column tests were also run. Upon completion of a positive feasibility study, Standard Mining's management had planned to place the deposit into production by the fall of 2001.)

Has begun talks to try to raise $10-$15M dollars to put El Chanate into production as a run-of-mine heap leach operation that would handle about 2.5M tonnes of ore per year and last for 4 to 6 years. They figure they would get an OK rate or return at a gold price around $275.

Press Release 5Nov01

Lobos Project, Sinaloa. Optioned from International Northair in April, 2001. The project is located approximately 30 miles north of the city of Culiacan. It contains two concessions
totaling over 7,000 acres. The program was carried out under an option agreement with
International Northair Mines Ltd. whereby Leadville can earn a 51% interest in INM’s Lobos Project. Twenty-four reverse circulation holes totaling 2,750 feet were completed at three separate strategic locations along a mineralized corridor of at least 4000 feet in length. All 24 holes encountered gold mineralization, which is considered a good result for early stage drilling. Ten holes had intersections over two grams per ton (g/t). Individual five foot drill sample intervals ranged to 8.9 g/t gold in DH-1, 7.1 g/t gold in DH-9, 7.4 g/t in DH-17 and 9.5 g/t in DH-22. The results of this first phase, which represents the first drilling for the property, suggest that the Lobos project has excellent potential for several large bulk tonnage deposits. Further drilling is needed to confirm this. To that end, Phase Two planning is underway. Scott Hazlitt and Roger Newell from LMMI and Jim Robinson from Northair are currently in Mexico on site. Once the drill plan is developed the second round of RC drilling will be scheduled. The geology of the property is very favorable for such deposits in that the gold mineralization is disseminated and hosted by a flow banded rhyolite rock unit rather than by typical quartz veins. 

Press Release 09May01

La Gloria Group, Sonora. Located around 16 km N of Caborca, a group of claims with a large zone of hydrothermal alteration some 1.6 km long and 0.4 km wide that returned spot surface values as high as 1.5 to 2 grams and is open to the NW and SE. This area is around 32 km W of El Chanate. Mapping and sampling currently underway. Drilling planned as soon as technically feasible (in other words, permits are required and probably are pending).

Press Release 27Jun01