Capital Gold sees near-surface potential at Saric

Vancouver – A slew of drillhole results show consistent gold-silver mineralization at Capital Gold‘s (CGC-T) Saric project in Mexico.

As a low-grade bulk-tonnage target, most intercepts were within 100 metres of surface.

Beginning from surface hole 5 and 6, for example, respectively hit 15 metres grading 0.36 gram gold per tonne and 48.05 grams silver per tonne and 15 metres grading 0.67 gram gold and 61.21 grams silver.

Drilling also cut some higher grades. Hole 53 hit 6 metres grading 2.98 grams gold and 120.66 grams silver starting 73 metres downhole while hole 55 hit 4.6 metres grading 13.42 grams gold and 4.56 grams silver.

Intercepts are within about 20% of true width and were part of a 73-hole reverse circulation drill program. Capital Gold plans to conduct a core drilling campaign in the near future to better model the geology of mineralization at Saric.

The Saric project, in northern Sonora State and about 100 km by road from Capital Gold’s El Chanate gold mine, is a low sulphidation system.

Capital Gold says initial metallurgical testing on samples from mineralized area returned good results in terms of cyanide solubility and low reagent consumption.

The Saric project is Capital Gold’s chief exploration target beyond its El Chanate gold mine where in the year ending July 31, 2009, it produced 49,912 oz. gold at a cash cost of US$271 per oz.

Proven and probable reserves at El Chanate weigh in at 71 million tonnes grading 0.66 gram gold for about 1.5 million oz. contained gold.

On news of the drillhole results Capital Gold’s shareprice gained 8¢ to close at $1.10. Capital Gold has 193.9 million shares outstanding.