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

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

Today, Capital Gold announced that it has recognized a 64% increase in net income before taxes for the first fiscal quarter ending October 31, 2008 compared to the same quarter of last year. Net income before taxes increased from $1,747,000 to approximately $2,863,000, while net income after taxes was reported at $1,936,000 compared to last year’s $1,747,000.

To continue expanding production, the company has placed an order for an additional secondary crusher. John Brownlie, the COO of Capital Gold, stated, “The success of all of the upgrades we completed in 2008, including leach pad expansion, additional solution pumps and a new, larger ADR plant, will allow us to consistently produce at current rates. In order to further increase gold production it is necessary to increase the throughput of crushed ore.”

“The most practical approach to achieve this is to add an additional crushing and screening module that have been designed to be

Most of the natural resources companies written about in these posts are companies still exploring or just getting into production. As with all natural resource companies, however, “if it isn’t one thing, it’s another.” Some “one things”, however, are much better than others. When the “one thing” is expansion put on hold because of the fickle nature of natural resource pricing, an investor may have found a company waiting to be exploited. Timing is everything in this regard, but if the right company is found, there is gold in them thar hills.

Capital Gold Corp., a junior gold production and exploration company, works to extract and prospect gold primarily in Mexico. The company is currently extracting gold from its Sonora mine location and exploring opportunities in the region with other junior operators.

For the period ending October 31, 2008, the company reports extraction of 11,000 ounces of gold from its primary Sonora

Working in a marketplace with long lead times and large capital expenditures requires patience and fortitude. Capital seems to flow like water with very little return coming from it. If, however, an investor is willing to stick out the long lead times, or happens to time the development cycle correctly, large veins of profit are likely.

Capital Gold Corp., a gold production and exploration company, works to extract gold from its El Chanate gold property in northern Mexico. Positive recent news has found that a former partner company has decided not to exercise its one-time “back-in option” for this mining property - allowing Capital Gold to move forward with future plans.

The company appears to have a fairly stable operation running with its El Chanate gold property. An average monthly output of 4,200 oz. has enabled the company to assess its position and make plans. Organic growth is the key element of