Filed by Timmins Gold Corp.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed under the Securities Exchange Act of 1934
Subject Company: Capital Gold Corp.
Commission File No.: 333-172161
TIMMINS
GOLD CORP
TIMMINSGOLD.COM TSXV:TMM
GOLD PRODUCTION
IN MEXICO
TIMMINS
GOLD CORP
2Certainstatementsandotherinformationincludedinthispresentationconstituteforward-lookingstatements.Allstatementsinthispresentation,otherthanthoserelatingtohistoricalinformationorcurrentcondition,areforward-lookingstatements,including,butnotlimitedto,estimates,forecastsandstatementsastomanagement’sexpectationswithrespectto,
amongotherthings,re-ratingupside,futuremarketcapitalizationorshareprice,expectedproductionorcashcosts,reservesandresources,
businessandfinancialprospects,futuretrends,plans,strategies,objectivesandexpectations,includingwithrespecttoproduction,cashcosts,
exploration,drillingandeventsorfutureoperationsfollowingtheproposedcombinationwithCapitalGold.Theseforward-lookingstatementsaresubjecttoanumberofrisksanduncertainties,manyofwhicharebeyondTimmins’control,
whichcouldcauseactualresultstodiffermateriallyfromsuchforward-lookingstatements.Forward-lookingstatementsaregenerallyidentifiedbythewords—expects,?—plans,?—anticipates,?—believes,?—intends,?—estimates,?—projects,?—potential?andsimilarexpressions,orthateventsorconditions—will,?—would,?—may,?—could?or—should?occur.Informationinferredfromtheinterpretationofdrillingresultsandinformationconcerningmineral
resourceestimatesmayalsobedeemedtobeforrd-lookingstatements,asitconstitutesapredictionofwhatmightbefoundtobepresentwhen,andif,aprojectisactually
developed.Eventsorcircumstancesthatcouldcauseactualresultstodiffermateriallyfromthoseintheforward-lookingstatements,include,butarenotlimitedto,(1)CapitalGoldoritsshareholdersfailuretoaccept
Timmins’proposal,voteagainsttheGammondealorreplacetheCapitalGoldboard,(2)Timminsshareshavingamarket
valuelowerthanexpected,(3)thebusinessesofTimminsandCapitalGoldnotbeingintegratedsuccessfullyorsuchintegration
beingmoredifficult,time-consumingorcostlythanexpected,(4)theexpectedbenefitsfromthetransactionnotbeingfullyrealizedorrealizedwithintheexpected
timeframe,(5)thepossibledelayinthecompletionofthestepsrequiredtobetakenfortheeventualcombinationofthetwo
companies,(6)disruptionfromtheproposedtransactionmakingitmoredifficulttomaintainrelationshipswithemployeesandsuppliers,
(7)marketprices,(8)exploitationandexplorationsuccesses,(9)costofgoldandsilverproductionincludingchangesinortheavailabilityof
suppliesandconsumables,(10)therecoveryofgoldandsilverfromtheleachpadsand(11)continuedavailabilityofcapitalandfinancing,and
generaleconomic,marketorbusinessconditions.Timminsdisclaimsanyintentionorobligationtoupdateorreviseanyforward-lookingstatementsinthispresentationasaresultofnewinformationorfutureevents,exceptasmayberequiredunderapplicablelaw.Theforward-lookingstatementsinthispresentationarebasedoncertainassumptionsandanalysesmadebyTimminsinlightofits
experienceandperceptionofhisricaltrends,currentconditionsandexpectedfuturedevelopmentsaswellasotherfactorsTimmins
believesareappropriateinthecircumstances.Alloftheforward-lookingstatementscontainedhereinarequalifiedbythesecautionarystatementsandbytheassumptionsthatarestatedorinherentinsuchforward-lookingstatements.AlthoughTimminsbelievestheseassumptionsarereasonable,unduerelianceshouldnotbeplacedontheseassumptionsand
suchforward-lookingstatements.Thekeyassumptionsthathavebeenmadeinconnectionwiththeforward-lookingstatementsinclude,butarenotlimitedto,CGC’sacceptanceofTimmins’proposalandtheenteringintoofadefinitive
agreementtoeffecttheproposedtransaction,closingtheproposedtransaction,themarketvalueofTimminsshares,future
productionandcashcosts,theabilitytorealizeofreserves,theabilitytosuccessfullyintegrateCapitalGoldwithinexpectedtimeframesand
costs,andrealizetheexpectedbenefitsfromthecombinationofTimminsandCapitalGoldandTimminsabilitytomaintainrelationshipswith
employeesandspliersduringthecourseoftheproposedtransaction.Cautionary Note Regarding Forward Looking Statements
TIMMINS
GOLD CORP
3
Corporate Overview
CanadianbasedgoldproductionanddevelopmentCompany
“Flagshipproject”SanFranciscoGoldMineinfullcommercialproduction
TimminsGoldismeetingandexceedingexpectations
Undervaluedwithinitspeergroup
Corporateobjectivesinclude:
SteadyproductionatSanFrancisco
Extensivedrillingtoincreasereservesandlifeofmine
Advanceexplorationonothergoldproperties:TimmClaims,CoculaandNorma
CompletionofstrategicacquisitionStrongproductionrampuphasledtoincreasedouncesanddecreasedcosts
TIMMINS
GOLD CORP
Management and Board of Directors
Senior Management Board of Directors
Arturo Bonillas, P.Eng-President, Director ArturoBonillas, P.Eng
BruceBragagnolo, LLB -Chief Executive Officer, Director Bruce Bragagnolo, LLB
EugeneHodgson, BA -Chief Financial Officer, Director Barry Fraser, LLB (Chair)
Miguel Soto, P.Eng-ChiefOperating Officer, Director Eugene Hodgson,BA
AlfredoBarraza, B.Sc., P. Eng -Mine Manager MiguelSoto, P.Eng
Miguel Bonilla,CPA -Vice President Finance Larry Dick,PHD, P.Eng
Alex Tsakumis, BA -Vice President, CorporateDevelopment Frank Cordova, PHD, Law
Daniel Niosi, P.Eng-Senior Mining Engineer
4
Company’s strength is derived from a strong operations team on the ground in Mexico
TIMMINS
GOLD CORP
5Share Structure –March 1, 2011
Share Price and Volume, March 1, 2011
TSX Venture Exchange TMM
Common Shares 137,049,161
Options@ $0.77 6,062,500
Warrants@ $0.80 2,000,000
Fully Diluted 145,111,661
MarketCapitalization 340,000,000
CurrentPrice $2.42
| 52 |
Week Range $1.18-$2.74 |
Working Capital $9,000,000
Share Ownership
Management& Insiders
Institutional Holdings
Sprott
Pacific Roads
Baker Steel
RBC Capital 14%
45%
TIMMINS
GOLD CORP
6
Property Portfolio
Timmins controls over 160,000 hectares of claims in the highlyprolific Northern Sonora Gold District, Mexico.
Several other high-potential gold projects one of which is contiguousto Goldcorp’s Penasquito Gold Mine(17 million ozs gold) in Zacatecas
Mexico recognized as a top Mining Jurisdiction with a well established mining infrastructure, labour force, favourable tax regime, stable economy and government.
Timmins Gold has well established relationships in the Mexican mining industry andgovernment.
250,000 Hectare Land Package in Mexico, Focused on Gold
TIMMINS
GOLD CORP
7San Francisco Gold Mine –Overview
100% owned open pit heap leach operation
45,000 hectare land package
Significant exploration and growth potential
Step out drilling expanding deposit to the NW, SW, and SE
Geochemical, geophysical and structural surveys point to larger deposit
Gold reserve of 780,000 ounces (34,932,000 tonnes @ 0.695 g/t Au)
San Francisco Main Pit
TIMMINS
GOLD CORP
8Desirable Location –Sonora, Mexico
Well developed infrastructure
Skilled local labour force from neighboring communities
Sufficient water rights and concessions
Withthecommercialproductionmilestonereached,TimminsGoldisnowfocusedondrilling
outsidethecurrentlimitsofthepittoexpandthereservesattheSanFranciscoGoldMine.
TimminsGoldhasalsocommencedexplorationonitsotherMexicangold/silverprospects.
LEACHED ORE MAIN HIGHWAY PROCESS PLANT LAB,OFFICES
PANAMERICAN RAIL LINE ESTACION LLAND TOWN MAINTENANCE FACILITIES OPEN PIT
TIMMINS
GOLD CORP
9Production
ADR gold plant capacity at 120,000 oz/yr
Contract miner (Peal of Spain) –well capitalized and reputable
Production during ramp up: Q1(11,319), Q2 (15,680), Q3 (20,030)*November 30, 2010, NI 43 -101 Technical Report and Mine Plan by Micon International Limited of Toronto
TIMMINS
GOLD CORP
10
Crushing / Leaching
New Secondary and Tertiary crushing system built with expansion capabilities
Commercial production commenced April 1, 2010
Leach extraction achieving projected recovery rate of 70%
TIMMINS
GOLD CORP
11Greater Recoveries
Crush Size on Old Heaps
Crush Size on New Heaps
?Crushing:Fully operational at approximately 14,000 t/d; growth to 18,000 t/d by summer 2011
?Crush size control: 100 % minus 1/2 inch rock shall increase recoveries above 70%
TIMMINS
GOLD CORP
12Production Reached –First Gold Pour (Dec. 2009)
?First dore bar consisted of 46 kilograms containing 1,152.70 ounces of gold and 228.28 ounces of silver
TIMMINS
GOLD CORP
13
San Francisco Gold Mine Reserve & Resource Estimate
Category MetricTons
x 1000 Gold
g/t Contained Gold
Ounces
Measured 19,089 0.797 489,000
Indicated 23,442 0.658 495,000
TotalMeasured + Indicated 42,531 0.720 984,000
Inferred 10,308 0.628 208,000
Reserve increase of 28% from previous resource on limited step-out drill program
Ore Type MetricTons
x 1000 Gold
g/t Contained GoldOunces
Proven 17,194 0.756 418,000
Provable 17,738 0.635 362,000
Total 34,932 0. 695 780,000
Mineral Resource Estimate (0.131g/t Au Cut-off grade)
Mineral Reserve Within the San Francisco Pit Design at August 31, 2010
TIMMINS
GOLD CORP
Operating Results14
ProductionStatistics Third Quarter
December 31, 2010 Second Quarter
September30, 2010 First Quarter
June 30, 2010
Total Material Mined (000’s mt) 5,777 4,969 5,091
Ore to Leach Pads (mt) 1,208,678 1,090,768 905,296
Ore to Leach Pads per day (mt) 13,430 11,856 9,948
Ore Grade –Au (g/t) 0.939 g/t 0.817 g/t 0.718 g/t
OuncesGold Sold 20,030 15,690 11,290
Ounces Silver Sold 10,699 7,948 6,54
Operating Cost per ounce sold US $439 US $515 US $697
Costs have continued to decrease each quarter to below the $489 projection
TIMMINS
GOLD CORP
Financial Highlights
15
Third Quarter
December 31, 2010 Second Quarter
September 30, 2010 FirstQuarter
June 30, 2010
Revenue $27.9 million $20.3 million $14.3 million
Income from Operations $15.8 million $6.1 million $0.9 million
Net Income (loss) $7.5 million $3.6 million($4.1million)
Earnings(loss) Per Share $0.05 $0.03($0.03)
TIMMINS
GOLD CORP
Exploration -Geological Setting
16
?The San Francisco Property islocated within the Sierra MadreOccidental metallogenic provincewhich extends along westernMexico from Sonora to Jalisco
?Situated in a belt of metamorphicrocks that hosts multi-millionounce deposits along theMojave-Sonora Megashear
?Major N-W trending structures control mineralization at San Francisco and continue beyond the final pit limits
Regional Setting of the San Francisco PropertyDrilling NW of the San Francisco pit has returned gold intersections similar to thoseencountered within the known ore body
TIMMINS
GOLD CORP
17
Mineralization Trends, Other Potential Drill Targets
Gold targets identified from geophysics and
Sampling north of San Francisco pit.
Multipletargetsidentifiedwithinthe45,000hectareclaimspackage
TIMMINS
GOLD CORP
Drill Program Extending Pit18
12km
Resource expanding in direction of drilling to the NE and SW of pit.
TIMMINS
GOLD CORP
2010 Drilling Highlights
?Recent drilling around the pit has returned highly encouraging results
?Results indicate gold mineralization extends 250 meters beyond the pit to the NW, SW and SE
?500 meter step-out confirms the major mineralized structure has a known width of over 1.2 kilometers
?This structural zone presents high priority exploration targets which will be further explored by the ongoing drill program
?$20 million drilling planned in 2011
?Drilling from July 2010 onward not included in recent reserves or resources
19
In 2010, Timmins drilled 622 holes totaling over 66,807 meters of drilling
TIMMINS
GOLD CORP
20TIMM Claims –Zacatecas, Mexico
?Over 45,000 hectare land package staked
?Contiguous to Goldcorp’s Penasquito golddeposit (17.0m oz Au)
?20 km NW of Goldcorp’s Camino Rojo Project (3.44m oz Au, 60.7m oz Ag)
?Geological setting similar to Penasquito deposit
21TIMM Claims –Zacatecas, Mexico
View of Penasquito Mine at the end of Mazapil
town at middle plane of the picture
Above right is an outcrop of breccia marble. Below right
is an outcrop of sandstone affected by felsic intrusion.
In both cases the samples returned gold and silver
assays of interest (over 1g/t Au and up to 450 g/t Ag).
TIMMINS
GOLD CORP
22
Cocula Property -Jalisco, México
TheCerroColoradopit,thewidest
mineralizedzoneidentified,trenchesalong
strikeofthemainstructuretoaccessold
undergroundworkings
Quartz stockwork with high gold values developed
within oxidized breccia cap in the Cerro Colorado pit
TIMMINS
GOLD CORP
23Cocula Property -Jalisco, México
Amineraltrendof900mlongwithgoldandsilvermineralizationinaquartzstockworksystemwithinanoxidizedbreccia
Discoveryoccursoneasternflankofamagnetichighwithinthe25kmmagnetictrend
Highlightsof26hole1,974meterR/Cdrillprogramcompletedlate2008:
RC-01:37.5mof1.30g/tAuand13g/tAg
RC-09:54mof0.72g/tAuand10g/tAg
RC-10:37.5mof1.20g/tAuand13g/tAg
539hectaresstakedalongSEprojectionofthesamestructuraltrendtocover2,000 malongstrikeofthesametrendtocomplete3,000moftheregionalstucturewithpotentialoreshootsofgoldandsilvermineralization
TIMMINS
GOLD CORP
24Norma, Patricia, Picacho and New Claims -Sonora, MexicoNorma:
16,000 hectares with mineral
exposures along 6 km. On trend
with the principal San Francisco
Mineralization. First phase drill
Programcomplete.
Patricia:
Gold Mineralization in quartz
veins and stockwork affecting
volcanics and Jurassic sediments.
El Picacho:
Gold mineralization in a thrust
fault (low angle) and in
metamorphic rocks including
granite and gneiss.
General Exploration:
Prospecting for gold occurrences to
generate new exploration targets
within the favorable belt .
Capital Gold’s El Chanate Mine located 65 kms away
TIMMINS
GOLD CORP
25
Objectives for 2011SAN FRANCISCO GOLD MINE
?Steady production 100,000 ounces Au/yr
?Achieve cash costs of $489 per ounce
?Extensive step out drilling to expand resources and lifespan at the mineOTHER PROPERTIES
?Exploration on Timm Claims
?Drilling at Norma and Patricia Claims
?Additional land package and drilling at Cocula
M & A
?Complete acquisition of Capital Gold Corp.
TIMMINS
GOLD CORP
26
Proposed Merger With Capital Gold Corp.
?Capital Gold –based in New York City and trades on TSX and AMEX
?Main asset is the El Chanate Gold Mine in Sonora Mexico (65 kms from San Francisco Mine)
?Open pit heap leach operation expected to produce 60,000 oz/Au in 2011 at a US $470/oz cash cost
?Modeled on Gammon Merger Agreement but with the following changes
?Exchange Ratio to be 2.27 TMM shares for each Capital Gold share
?The Combined Company would be 50.5% owned by the shareholders of Capital Gold and 49.5%by the shareholders of Timmins Gold
Timmins has filed unsolicited F4 Registration Statement , definitive Proxy and Consent Statements with SEC
TIMMINS
GOLD CORP
27Proposed Merger With Capital Gold Corp.
Merger of Timmins Gold and Capital Gold will form a mid-tier, low cost
Mexico-focused gold producerWhy Merge?
?The Combined Company will be a Mexico-focused, Mid-Tier Gold Producer, expected to have:
?2011 (E) gold production of ~ 160,000 oz. Au
?Combined Proven and Probable Reserves of ~ 2.2 million oz Au (and growing)
?Cash operating costs between US $470 and US $489 /oz. Au
?The Combined Company will benefit from:
?Re-rating upside potential
?Stronger market presence, liquidity, trading volume
?Larger market Cap > $700 million (BEFORE potential re–rating)
?Management team with track record of building shareholder value
?Experienced operation team based in the region
?Enhanced exploration opportunities throughout the district
TIMMINS
GOLD CORP
28
Firm Analyst
CanaccordGenuity Nick Campbell
CasimirCapital Wayne Atwell
JenningsCapital StuartMcDougall
MGI Securities Mark Pais
M Partners MarcJohnson
National Bank Tara Hassan
TimminsGoldCorp.isfollowedbytheanalystlistedabove.Pleasenotethatanyopinions,estimatesorforecasts
regardingTimminsGold’sperformancemadebyanalystsaretheirsaloneanddonotrepresentopinions,forecastsor
predictionsofTimminsGoldoritsmanagement.TimminsGolddoesnotbyitsreferenceaboveordistributionimplyits
endorsementoforconcurrencewithsuchinformation,conclusionsorrecommendations.
Analyst Coverage
TIMMINS
GOLD CORP
29
Summary
Management Operating team in Mexico has proven its abilityto meetobjectives.
Mine / Infrastructure Past producing gold mine with established processing plant
Land package Several gold properties with strong exploration upside
Simple Structure 100% owned projects, no royalties
Cash Flow Positive cash flow from operations will drive future growth
Gold Price High prices support increased revenues / reserve expansion
Key Shareholders Sprott, Pacific Road, Baker Steel, Precious Capital, RBC, Gordon Group
First Gold Pour 3 years after IPO (July 2006).
TIMMINS
GOLD CORP
30
Timminsissubjecttothereportingrequirementsoftheapplicable Canadiansecuritieslaws,andasaresultwereportourmineralreservesaccordingto Canadianstandards.CanadianreportingrequirementsfordisclosureofmineralpropertiesaregovernedbyNationalInstrument43-101StandardsofDisclosureforMineralProjects(—NI43-101?).ThedefinitionsofNI43-101areadoptedfromthosegivenbytheCanadianInstituteofMining, MetallurgyandPetroleum.U.S.reportingrequirementsaregovernedbytheSECIndustryGuide7(—Guide7?). ThispresentationincludesreservesreportedinaccordancewithGuide7andalsoincludesreservesandresourcesreportedinaccordance withNI43-101.Thesereportingstandardshavesimilargoalsintermsofconveyinganappropriatelevelofconfidenceinthedisclosuresbeingre ported,butembodydifferentapproachesanddefinitions.Forexample,underIndustryGuide7,mineralizationmaynotbeclassifiedasa—reserve? unlessthedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegallyproducedorextractedatthetimethere servedetermationismade.Inparticular,wereport—resources?inaccordancewithNI43-101.Whiletheterms—MineralResource,?—MeasuredMineralResource,?—IndicatedMineralResource?and—InferredMineralResource?arerecognizedandrequiredbyCanadianregulations,theyarenotdefinedtermsunderstandardsofthe SECand,generally,U.S.companiesarenotpermittedtoreportresourcesindocumentsfiledwiththeSEC. Assuch,certaininformationcontainedinthispresentationconcerningdescriptionsofmineralizationandresourcesunder Canadianstandardsisnotcompaabletosimilarinformationmadepublicby UnitedStatescompaniessubjecttothereportinganddisclosurerequirementsoftheSEC.Inaddition,an—InferredMineralResource?hasagreatamountofuncertaintyastoitsexistenceandastoitseconomicandlegalfeasibility, andyoucannotassumethatalloranypartofan—InferredMineralResource?willeverbeupgradedtoahighercategory. UnderCanadianrules,estimatesofInferred MineralResourcesmaynotformthebasisoffeasibilityorothereconomicstudies.Readersarecautionednottoassumethatalloranypartof MeasuredorIndicatedResourceswilleverbeconvertedintoMineralReserves.Readersarealsocautionednottoassumethatalloranypartofan—InferredMineralResource?exists,oriseconomicallyorlegallymineable.Inaddition,thedefinitionsof—ProvenMineralReserves?and—ProbableMineralReserves?underCIMstandardsdifferincertainrespectsfromthestandardsoftheSEC.
Cautionary Note Regarding Mineral Reserve Estimates
TIMMINS
GOLD CORP
31Thispresentationdoesnotconstituteanoffertosellorthesolicitationofanoffertobuyanysecuritiesorasolicitationofany voteorapproval.ThispresentationrelatestoabusinesscombinationtransactionwithCapitalGoldproposedby TimminsGold.Thismaterialisnotasubstitutefortheprospectus/offertoexchangeTimminsGoldhasfiledwiththeSECregardingtheexchangeofferandwillsendorgiveto CapitalGoldstockholderswhentheexchangeoeriscommencedorforanyotherdocumentwhichTimmins GoldmayfilewiththeSECandCanadiansecuritiesregulatorsandsendtoTimmins GoldorCapitaGldstockholdersinconnectionwiththeexchangeoffer. INVESTORSANDSECURITYHOLDERSOFTIMMINSGOLDANDCAPITALGOLDAREURGEDTOREADTHEPROSPECTUS/OFFERTOEXCHANGE ANDANYOTHERDOCUMENTSFILED WITHTHESECANDCANADIANSECURITIESREGULATORSCAREFULLYINTHEIRENTIRETY, BECAUSETHEYCONTAINIMPORTANTINFORMATIONABOUTTHEEXCHANGEOFFER. Suchdocuments,aswellassolicitationstatementsrelatingtotheConsentSolicitationandthe ProxySolicitation,areavailablefreeofchargethroughthewebsitemaintainedbytheSECatwww.sec.gov, bycallingtheSECattelephonenumber800-SEC-0330,oratthewebsitemaintainedbytheCanadiansecuritiesregulatorsat www.sedar.com,orbydirectingarequesttoTimminsGoldatSuite520—609GranvilleStreet,Vancouver,BC,CanadaV7Y-1G5oratwww.timmins.com.Timmins Goldanditsdirectorsandexecutiveofficersandotherpersonsmaybedeemedtobeparticipantsinanysolicitationofproxiesfrom CapitalGod’sshareholdersinrespectoftheproposedtransactionwithCapitalGold.InformationregardingTimmins Gold’sdirectorsandexecutiveofficerswillbeavailableinaprospectus/proxystatementTimminsGoldfiledwiththeSECandCanadiansecuritiesregulatorsregardingtheproposedtransaction. Otherinformationregardingpotentialparticipantsinsuchproxysolicitationandadescriptionoftheirdirectandindirectinterests, bysecurityholdingsorotherwise,willbecontainedinanyproxystatementorotherdocumentsfiledwiththeSECandCanadian securitiesregulatorsinconnectionwiththeproposedtranction.Important Information
TIMMINS
GOLD CORP
TIMMINSGOLD.COM TSXV:TMM
Default;Safe HarborWinston Hartle32For More Information: Alex P. Tsakumis, Vice President Corporate DevelopmentTel: 604.638.8976 Mobile: 778.996.3395alex@timminsgold.comwww.timminsgold.com