Castle Gold Attains Commercial Production at Its El Castillo Gold Mine, Mexico
TORONTO, ONTARIO--(Marketwire - Aug. 11, 2008) - CASTLE GOLD CORPORATION (Castle Gold, the Company) (TSX VENTURE:CSG - News) is pleased to announce that effective June 30, 2008 it completed the commissioning stage of production at its 100% owned El Castillo Mine, Durango State, Mexico. Accordingly, effective July 1, 2008 the Company will begin reporting quarterly financial results of operations from the El Castillo.
During the second quarter 2008, the El Castillo operation ran at better than 80% of budgeted levels in all areas of waste and ore mining, crushing, grade of ore mined and stacked on heaps, recoveries and gold production. Production during the quarter totalled 4,692 ounces of gold. Unaudited cash cost of production (mining, processing, capital, G & A, and other costs) during the quarter totalled US$523 per ounce of gold produced. Unaudited cash cost of production, less construction and capitalized stripping, during the quarter totalled US$464 per ounce of gold produced.
Darren Koningen, Vice President Mine Development at Castle Gold, commented on the mine having attained commercial production, stating: "We're very pleased with how the ramp-up to commercial production has gone at Castillo. This success is a reflection of the abilities and commitment of Castle's experienced mine operating team. We've achieved good operating results relative to our initial plans, and costs consistent with budget. Having attained commercial production rates over a sustainable period we're already planning for improved performance going forward as we endeavour to enhance the potential of the El Castillo mine."
About Castle Gold
Castle Gold Corporation is a growth oriented gold producer with projects focused in the America's. The Company owns a 100% interest in the El Castillo gold mine in Mexico and a 50% interest in the El Sastre gold mine in Guatemala. Castle Gold is also advancing exploration and development work at its La Fortuna gold-silver-copper project in Mexico and at its El Sastre and El Arenal project in Guatemala.
Total Shares Outstanding: 75.3MM
Fully Diluted: 88.1MM
52-Week Trading Range: C$0.38 - $0.90
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Thomas Atkins
Castle Gold Corporation
President and CEO
(416) 214-4809 or Toll Free: 1-866-646-3274
Rory Quinn
Castle Gold Corporation
Manager Investor and Public Relations
(416) 214-4809 or Toll Free: 1-866-646-3274
(416) 366-7421 (FAX)
Email: info@castlegoldcorp.com
castlegoldcorp.com
Source: Castle Gold Corporation
(Here's a junior producer that's ramping up production. They say El Castillo ran at 80% of capacity last quarter for 4,692 oz-Au. If one assumes they improve to 90% on average for the coming year then they'll produce 4*4,692*0.9/0.8 = 21,114 oz-Au. Looking John Doody's Gold Stock Analyst chart of mkt cap/produced oz-Au and taking the low side of the spread of $4,000 mc/oz x 21,114 oz/88,100,000 shares = $0.96/share. Add in the 50% of production at their El Sastre mine and the expansion possibilities by drilling El Refugio, Bridge and El Arenal CSG.v which closed Friday at $0.40 looks dirt cheap to me.) |
