Capital Gold Announces El Chanate Project Expenses

On Thursday, May 1 Capital Gold's Jeff Pritchard, Vice President Investor Relations
announced that the company's total investment in the El Chanante project since 2001 is between $40 and $50 million at the Latin American Mining Congress 2008 in Miami, Florida. This is the first time Capital Gold has released the number.

Anglogold Ashanti's option on El Chanate requires they pay Capital Gold two times the El Chanate project expenses which would be $80-$100 million. At this price, the option is an even better deal than my previous guesstimate.

My previous guesstimate that Anglogold would have to pay $180 million ($90 million investment)was off by a factor of two. I believe the $90 million El Chanate investment number came from a quick review of the 2007 10K balance sheet which lists Additional Paid-In Capital at $54,016,375 and the Accumulated Deficit at ($38,860,641) which totals a little over $90 million invested. I don't remember exactly, but that is what I must have used to get the $90 million guesstimate. Here is a link to Capital Gold's 2007 10K.

Capital Gold 2007 10K

Here is a link to Capital Gold's Jeff Pritchard's presentation.

Jeff Pritchard's Presentation

Thank you to Gibralter for pointing out the new information on Capital Gold's El Chanate investment totals.

Gold Stock Strategist