Capital Gold Corp. increased its estimates of gold reserves by 67% over the previous level. The company estimates that the El Chanate open pit mine contains 1.5 million ounces of proven and probable reserves of gold, up from the 913,000 ounces at the previous update.
The mine is located in Sonora, Mexico, and is 100% owned by the Capital Gold Corporation. The mine began operations in August 2007, and has produced 100,000 ounces of gold since that time.
John Brownlie, the President of the Capital Gold Corporation said, “This reserve increase is encouraging and improves the platform for Capital Gold to continue its growth to a mid-tier gold producer…. we plan to conduct additional drilling within the deposit to attempt to identify additional resources outlined by our new block model and study the options for further production increases while maintaining the longer mine life.”
The reserve estimates were conducted by SRK Consulting, Inc. of Lakewood, Colorado. SRK Consulting, Inc. used an assumed gold price of $800 per ounce, and a recovery rate of 58.25%.