Carpathian Gold Inc.

Carpathian Gold Inc.

June 21, 2010 06:00 ET

Carpathian Announces All Land Has Been Acquired for the Riacho dos Machados Gold Project, Brazil

TORONTO, ONTARIO--(Marketwire - June 21, 2010) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian"), through its wholly owned Brazilian subsidiary, is pleased to announce that it has completed the purchase of all surface lands required for the life-of-mine footprint for the open pit mining operation at the Riacho dos Machados Gold Project (the "Project") located in the state of Minas Gerais, Brazil.

The Corporation is also nearing completion on an updated NI 43-101 compliant resource estimate as well as a reserve estimate to be used for a Bankable Feasibility Study ("BFS"). All capital costs, operating costs, infrastructure, layout design and mining plans required for the BFS are essentially complete and optimization work is underway tying in all of these elements to further enhance the robust economics of the project.

All technical documentation required for the Licenca Instalacao ("LI") that will allow construction to begin on the Project, has been compiled and will be submitted to the appropriate government authority for approval. This process is currently within the timelines set out by the Corporation to enable it to meet the Corporate objective of having the Project up and running by the end of 2011. As previously announced, the Corporation has already been granted the critical path time line license, the Licenca Previa ("LP") that allows all earthworks in the mine and water retention dams and tailing dams to be constructed.

"The closing of the final land purchases required for the project is a major milestone in both the development of the Project as well as the licensing process for production", said Dino Titaro, President and CEO. "We are also pleased with the rapid progress of the Bankable Feasibility Study and the indications that it supports the Corporations goal of becoming a gold producer in the near-term".

About Carpathian

The Corporation is an exploration and development company whose primary business interest is developing near-term gold production on its 100% owned Riacho dos Machados Gold Project in Brazil, which is currently in the feasibility study stage, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project located in Romania. The RDM Gold Project, based on the PEA is expected to be a +100,000 ounce per year gold producer at a relatively low cash cost. The Project is currently in the Feasibility Study stage.

Forward-Looking Statements: This press release includes certain statements that may be deemed "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "Project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Carpathian Gold Inc.
    Dino Titaro
    President & CEO
    +1 (416) 368-7744
    +1 (416) 260-2243 (FAX)
    Carpathian Gold Inc.
    Mike O'Brien
    Manager Investor Relations
    +1 (416) 368-7744
    +1 (416) 260-2243 (FAX)
    Investor Relations, Montreal
    +1 (514) 341-0408 or 1-866-460-0408
    +1 (514) 341-1527 (FAX)
    Seton Services, UK
    Toni Vallen
    +44 207 224 8468