Capital Gold Corp. reported a 64% increase in net income and a 29% increase in revenues for the fiscal year ended July 31, 2009, as compared to the previous year.

Royalties represented approximately $41 and $52 of both cash and total costs per ounce sold for the years ended July 31, 2009 and 2008, respectively. “Cash costs per ounce sold” is a non-GAAP measure which includes all direct mining costs, refining and transportation costs, by-product credits and royalties. “Total cost per ounce sold” is a non-GAAP measure which includes “cash costs per ounce sold” as well as depreciation and amortization.

“This has been an exciting and productive year for Capital Gold,” said John Brownlie, Capital Gold’s President and Chief Operating Officer. “The efforts made by our team have added shareholder value by maintaining a safe and profitable working environment at the El Chanate mine. Our increasing production profile is a result of ongoing improvements in plant operations and mining efficiencies, making us, what we believe to be, one of the lowest cost gold producers in the industry.”

Selected highlights from the year ended July 31, 2009 vs. prior year results include:

Revenue increase of approximately 29%
Net income increase of approximately 64%
Basic net income per share increased of 25%
Gold ounces sold increased to approximately 24%

Capital Gold has increased reserves and is planning for organic growth. In a press release dated October 13, 2009, the Company announced a 64% increase to El Chanate’s proven and probable reserves. Brownlie said, “We now have plans in place that should allow us to further increase production and reserves at El Chanate. In addition to expanding El Chanate, we have been drilling at our exploration property, Saric. The latest phase of our drill program is almost complete and once our geologists have compiled their findings, we will report on the results of this work.”

John Brownlie, President and Chief Operating Officer, and Chris Chipman, Chief Financial Officer, today hosted the company‚Äôs conference call. The conference call discussed the year end results. This call has been archived and will be available on the company’s website for investors within 48 hours.

Capital Gold Corp. is a gold production and exploration company. The company and its Mexican subsidiaries and affiliates own 100% of the El Chanate gold property in Sonora, Mexico. Capital Gold has also begun exploration of 4,100 hectares of owned and leased concessions near the town of Saric, 60 miles from El Chanate. Further information about Capital Gold and the El Chanate Gold Mine is available on the Company’s website, www.capitalgoldcorp.com.

Let us hear your thoughts: