Carpathian Gold Inc.
TSX : CPN

Carpathian Gold Inc.

January 19, 2010 06:00 ET

Carpathian Completes Phase II Drill Program: Intersects 15.4 m of 3.67 g/t Au & Advances Feasibility Study on its RDM Gold Project, Brazil

TORONTO, ONTARIO--(Marketwire - Jan. 19, 2010) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to announce it has completed the Phase II drill program at its 100% owned Riacho Dos Machados ("RDM") Gold Project located in Minas Gerais State, Brazil. A total of 151 drill holes were completed for 20,770 m, designed to upgrade inferred resources within the newly defined open pit established from the NI 43-101 compliant Preliminary Economic Assessment ("PEA" -announced August 12, 2009); and further define gold-mineralized strike extensions, all for use in the feasibility study which is presently underway.

Recently received assay results continue to demonstrate good geologic and gold grade continuity both along strike and down-dip along the RDM shear zone as demonstrated by the following highlights:

  • FRM-191 (Central Pit Zone) which intersected 14.6 m at 2.46 g/t Au including 1.9 m at 9.92 g/t Au near the bottom of the PEA proposed open pit 175 m below surface;

  • FRM-203 (North Pit Zone) which intersected 15.4 m at 3.67 g/t Au including 4.8 m at 9.11 g/t Au 60 m below surface;

  • F-93 (South Pit Zone) which intersected 7.9 m at 4.73 g/t Au including 1.6 m at 20.5 g/t Au 35 m below surface

Notes: Intersection lengths are approximate true thicknesses; drill hole F-93 is re-sampled drill core from the previous operator Vale; a full list of intersection details is shown at the end of this news release.

Phase II Drill Program

Assay results have been received for an additional 46 drill holes and one re-sampled hole, since our last press release on November 16, 2009. Assay results for an additional 14 drill holes and 19 surface trenches are expected within the next two weeks. All of the assay results reported herein represent the portion of the mineralized zone that is considered to be accessible through deepening of the existing open pit as outlined in the results of the PEA study. The gold mineralization occurs in a shear zone with the proposed new open pit to be developed over a strike length of 1,800 m. A complete list of the assay results reported herein can be found at the end of this press release. A map showing the location of the drill holes completed can be found on the Corporation's website at www.carpathiangold.com.

In addition to the above intersections, other highlight intersections are shown below.

  • FRM-128 with 10.8 m at 1.76 g/t Au in Central Pit zone;
  • FRM-132 with 14.9 m at 1.32 g/t Au in Central Pit zone;
  • FRM-188 with 7.0 m at 2.07 g/t Au in Central Pit;
  • FRM-196 with 12.3 m at 2.07 g/t Au in South Pit; including 2.8 m at 5.47 g/t Au;
  • FRM-201 with 13.8 m at 1.33 g/t Au in South Pit; including 2.0 m at 4.08 g/t Au.

Notes: Widths are approximate true thicknesses.

The Phase II drill program was designed principally as an infill program along the 1,250 m existing open pit to convert Inferred resources to Measured + Indicated resources for conversion into a reserve within the PEA study open pit design. In addition, strike extensions to the south of 700 m and to the north of 150 m were drilled to shallow depths at a resource spacing of 50 x 40 m for a total strike length of 2,100 m.

This drilling indicates gold mineralization is open along strike and at depth as shown by the following two drill hole intercepts on the south and north edges of the drill pattern:

  • FRM-205 (700 m south of existing pit) 8.0 m at 0.51 g/t Au including 2.0 m at 1.08 g/t Au starting at 27 m down hole;
  • FRM-153 (150 m north of existing pit) 3 m at 3.64 g/t Au starting at 27 m down hole.

Notes: Widths are approximate true thicknesses.

The south and north strike extensions offer further exploration potential both along strike and at depth. The RDM Shear zone has a geologic, soil geochemistry expression and sampled gold occurrences over a 14 km strike length, which has not yet been fully evaluated. The strike extensions and exploration targets along the RDM shear zone will be further evaluated during 2010.

With nearly all of the final assay reports received, we continue to be pleased with the results and look forward to the resource estimate update followed by a new reserve estimate, which is presently underway" said Dino Titaro, President and CEO. "We believe that the drilling results from the infill drill program have demonstrated the grade continuity required to upgrade the Inferred resources to the Measured + Indicated category. In addition, the gold mineralization drilled along the strike extensions now demonstrates continuous mineralization over 2,100 metres and remains open further along strike and at depth. The resource estimate update will be an integral part of our feasibility study, which is progressing well and is targeted for completion in the second quarter of this year."

Feasibility Study

In December 2009, the feasibility study was awarded to a consortium of engineering consulting companies led by Tecnomin Projectos e Consultoria Ltda and including NCL Brasil Ltda, Golder Associates Brasil Consultoria e Projetos Ltda, and YKS Services Ltda. This is the same group of consultants who completed the NI 43-101 Compliant PEA, at a very detailed level; and as such is familiar with the project. Its expected completion will be in Q2, 2010. Present activities underway include:

  • a geotechnical drilling program;
  • geologic modeling and resource estimation to produce a resource estimate update and reserve estimate to be used in the Feasibility Study;
  • mine layout and infrastructure design, and;
  • advancement of the permitting process with Licença Previa ("LP") expected this month.

The resource estimate update will be based on the Phase II Drill program and the Phase I 2008 drilling totaling 31,904 m (215 drill holes) plus re-sampling drill core from the previous operator, Companhia Vale do Rio Doce ("Vale"), of 148 drill holes totaling 24,115 m, which aggregates a total of 56,019 m drilling. This new resource estimate is expected to provide a substantial Measured + Indicated resource category for the bulk of the mineralization within the open pit designed in the PEA study and thus be converted to reserves for the Feasibility Study.

Project Background

The RDM gold project is a 22,000-hectare land parcel comprising 12 Exploration Licenses and one Mining Concession that cover a contiguous 40 kilometre area that includes a 14 km long north-south shear zone. The Mining Concession hosts a past producing open-pit gold mine, which was previously operated by Vale between 1989 and 1997 and from which oxide gold ore was mined to maximum depths of 60 m below the surface. Carpathian acquired 100% of this project in October 2008. The gold mineralization at RDM is shear zone hosted, within a package of Precambrian aged metamorphic rocks. This shear zone strikes 20 degrees and dips 40 to 50 degrees east. The gold mineralization is now known to be continuous over a strike length of greater than 2,100 m and open at depth to greater than 550 m at the RDM mine-site.

The Corporation announced the results of the initial NI 43-101 compliant Mineral Resource Estimate on May 18, 2009 as outlined in the Resource Report that is available on www.SEDAR.com. On August 12, 2009, the Corporation announced the results of the PEA Study on the Project, which was based solely on the open pit mineralization defined in the May 18, 2009 NI 43-101 Mineral Resource Estimate.. This study can also be found on www.SEDAR.com.

Sample Protocol

Assay results presented in this news release are half-core from split NQ drill core and sampled on a metre by metre basis through the mineralized zone and into surrounding altered rock. In addition, Reverse Circulation (RC) drilling through the mineralized zone is sampled on a metre by metre basis and assayed only when dry samples are collected. Drill holes denoted with an * in Table II below are RC drill holes sampled through the gold mineralized zone. All samples collected from Brazil are prepared and analyzed at the independent ISO Certified SGS laboratory, located near Belo Horizonte, Brazil using industry standard fire assay techniques for gold on 50-gram sample charges with AAS finish. Coarse blanks, pulp blanks, pulp duplicates, and known gold standards are inserted on a routine basis. Combined they consist of 20% per cent of submitted samples. In addition, on a periodic basis 3% of the crusher rejects are re-submitted and a minimum of 3% of the pulps will be analyzed at the ISO Certified ALS Chemex Laboratory near Belo Horizonte, Brazil for check assays.

Mr. Titaro is the qualified person (as defined in National Instrument 43-101) overseeing the design and implementation of the present exploration programs. He is responsible for preparing the technical information contained in this news release.

Carpathian Gold Inc.

Carpathian 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 along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu project located in Romania.

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 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.

Table I. Carpathian drill hole assay intersections from Phase II drill program at the RDM project, Minas Gerais, Brazil, November 17th 2009 to January 6th 2010.

Drill Hole Area From
(m)
To
(m)
Length
(m)
True Thickness
(m)
Au
(g/t)
FRM-128 IV 173.0 175.0 2.0 2.0 1.25
    187.0 189.0 2.0 2.0 1.51
    196.0 198.0 2.0 2.0 1.13
    213.0 224.0 11.0 10.8 1.76
Incl.   217.0 219.0 2.0 2.0 4.63
FRM-129 VI 155.0 157.0 2.0 2.0 1.94
    207.0 209.0 2.0 2.0 1.77
FRM-132 VI 91.0 94.0 3.0 3.0 1.56
    106.0 121.0 15.0 14.9 1.32
Incl.   115.0 117.0 2.0 2.0 4.08
FRM-148 III 197.0 209.0 12.0 11.8 1.28
FRM-161 V 63.0 66.0 3.0 3.0 2.80
    78.0 80.0 2.0 2.0 1.70
    84.0 90.0 6.0 5.9 1.04
    96.0 98.0 2.0 2.0 1.17
FRM-163 South 35.0 37.0 2.0 1.9 0.87
FRM-164 South 20.0 24.0 4.0 4.0 1.07
FRM-165 V 67.0 81.0 14.0 14.0 1.24
Incl.   68.0 70.0 2.0 2.0 4.98
    127.0 132.0 5.0 5.0 1.52
FRM-166 South 42.0 46.0 4.0 3.9 0.61
FRM-167 South 72.0 74.0 2.0 2.0 0.74
FRM-168 South 30.0 32.0 2.0 2.0 0.92
    37.0 40.0 3.0 3.0 1.73
FRM-169 South 39.0 45.0 6.0 5.7 0.78
FRM-170 South 85.0 87.0 2.0 2.0 1.31
FRM-171 South 26.0 28.0 2.0 2.0 0.93
FRM-172 South 45.0 47.0 2.0 1.8 0.48
FRM-173 South 7.0 10.0 3.0 3.0 0.44
FRM-174 South 49.0 53.0 4.0 3.9 0.62
FRM-175 V 35.0 43.0 8.0 7.7 1.38
Incl.   36.0 38.0 2.0 1.9 3.74
FRM-176 South 8.0 18.0 10.0 10.0 0.55
Incl.   11.0 13.0 2.0 2.0 1.07
FRM-177 IV 162.0 164.0 2.0 1.9 3.90
    205.0 212.0 7.0 6.7 0.78
    238.0 239.0 1.0 1.0 1.25
FRM-179 IV 88.0 92.0 4.0 3.9 1.15
    98.0 103.0 5.0 4.9 1.39
    117.0 123.0 6.0 5.9 1.44
FRM-180 IV 170.0 177.0 7.0 6.8 3.09
    193.0 194.0 1.0 1.0 1.55
    211.0 225.0 14.0 13.7 0.57
Incl.   211.0 214.0 3.0 2.9 1.21
FRM-182 V 63.0 76.0 13.0 13.0 1.23
Incl.   63.0 66.0 3.0 3.0 2.04
    87.0 88.0 1.0 1.0 2.01
FRM-183 IV 58.0 61.0 3.0 2.9 1.84
    80.0 87.0 7.0 6.7 1.04
FRM-184 IV 15.0 19.0 4.0 3.9 1.59
    50.0 53.0 3.0 2.9 1.49
    66.0 69.0 3.0 2.9 1.91
FRM-185 IV 131.0 132.0 1.0 1.0 6.25
    163.0 174.0 11.0 11.0 1.18
FRM-186 North 25.0 26.0 1.0 1.0 10.30
    48.0 49.0 1.0 1.0 2.43
    64.0 68.0 4.0 3.9 1.41
FRM-188 IV 4.0 15.0 11.0 11.0 0.91
Incl.   5.0 9.0 4.0 4.0 1.63
    18.0 22.0 4.0 4.0 1.84
    34.0 39.0 5.0 5.0 0.97
    49.0 56.0 7.0 7.0 2.07
Incl.   51.0 53.0 2.0 2.0 5.07
FRM-189 IV 57.0 68.0 11.0 11.0 0.96
Incl.   57.0 61.0 4.0 4.0 1.50
FRM-190 North 27.0 29.0 2.0 2.0 1.49
    50.0 58.0 8.0 8.0 0.50
Incl.   50.0 51.0 1.0 1.0 1.23
FRM-191 IV 181.5 196.5 15.0 14.6 2.46
Incl.   185.5 187.5 2.0 1.9 9.92
    231.5 233.5 2.0 1.9 1.06
FRM-194 V 99.0 101.0 2.0 2.0 3.41
FRM-195 IV 52.0 54.0 2.0 1.9 5.25
    84.0 97.0 13.0 12.7 1.09
Incl.   87.0 91.0 4.0 3.9 2.10
FRM-196 IV 57.0 59.0 2.0 1.9 1.89
    83.0 96.0 13.0 12.3 2.07
Incl.   92.0 95.0 3.0 2.8 5.47
FRM-197 South 54.0 57.0 3.0 3.0 0.46
FRM-198 South 31.0 33.0 2.0 2.0 0.61
FRM-199 South NSI        
FRM-201 III 44.0 58.0 14.0 13.8 1.33
Incl.   55.0 57.0 2.0 2.0 4.08
FRM-202 III 31.0 39.0 8.0 8.0 1.28
    33.0 36.0 3.0 3.0 2.67
FRM-203 V 70.0 86.0 16.0 15.4 3.67
Incl.   71.0 76.0 5.0 4.8 9.11
FRM-204 IV 42.0 46.0 4.0 3.9 0.60
FRM-205 South 27.0 35.0 8.0 7.4 0.51
Incl.   33.0 35.0 2.0 1.8 1.08
FRM-209 IV 9.0 11.0 2.0 1.9 0.93
    19.0 22.0 3.0 2.9 1.42
FRM-210 IV 87.0 89.0 2.0 1.8 1.37
    104.0 108.0 4.0 3.6 3.27
FRM-211 III 48.0 53.0 5.0 5.0 1.21
    60.0 65.0 5.0 5.0 0.87
    78.0 80.0 2.0 2.0 2.08
FRM-212 IV 41.0 56.0 15.0 15.0 1.02
Incl.   42.0 44.0 2.0 2.0 2.21
    73.0 75.0 2.0 2.0 1.91
F-93* III 35.0 45.0 10.0 7.9 4.73
Incl.   41.0 43.0 2.0 1.6 20.5

Notes: Assay intersections are calculated using a 0.30 g/t Au cut-off and maximum allowable dilution of three consecutive metres at <0.30 g/t Au. NSI = no significant intersection. * Re-sampled drill core from previous Vale drill program. Areas 'South' and 'North' are strike extensions from existing open pit. Drill hole details i.e. azimuth, declination and total depth, are shown in Drill Hole Details in Table II below.

Table II. Drill hole details for holes completed by Carpathian at the RDM Project during Phase II drill program and November 17th 2009 to January 6th, 2010.

Drill Hole Area Northing Azimuth (degrees) Declination (degrees) Total Depth
(m)
FRM-128 IV 10,277 270 -67 240.8
FRM-129 IV 10,227 270 -67 228.0
FRM-132 IV 10,035 278 -53 152.3
FRM-148 III 9,806 270 -71 221.0
FRM-161 V 10,675 270 -61 130.5
FRM-163* South 8,920 270 -66 70.0
FRM-164* South 8,960 270 -57 52.0
FRM-165 V 10,518 268 -57 151.7
FRM-166* South 8,960 270 -66 67.0
FRM-167* South 9,000 270 -63 88.0
FRM-168* South 9,000 270 -60 50.0
FRM-169* South 9,040 270 -63 60.0
FRM-170* South 9,040 270 -60 94.0
FRM-171* South 9,080 270 -61 60.0
FRM-172* South 9,080 270 -76 70.0
FRM-173* South 9,118 283 -57 50.0
FRM-174* South 9,119 275 -66 80.0
FRM-175 V 10,531 297 -47 121.2
FRM-176* South 9,160 270 -55 43.0
FRM-177 IV 10,154 270 -75 250.7
FRM-179 IV 10,155 270 -65 161.2
FRM-180 IV 10,197 270 -73 260.2
FRM-182 V 10,750 270 -51 112.0
FRM-183* IV 10,105 270 -66 109.0
FRM-184 IV 10,224 270 -61 85.0
FRM-185 IV 10,209 270 -63 211.6
FRM-186 North 10,830 270 -66 82.6
FRM-188* IV 10,223 270 -50 80.0
FRM-189* IV 10,263 270 -55 90.0
FRM-190 North 10,871 270 -57 91.3
FRM-191 IV 10,123 270 -71 250.7
FRM-194 V 10,789 270 -58 160.4
FRM-195* IV 10,323 270 -65 106.0
FRM-196* IV 10,016 270 -69 103.0
FRM-197* South 9,162 270 -58 75.0
FRM-198* South 9,200 270 -65 60.0
FRM-199* South 9,200 270 -56 43.0
FRM-201* III 9,570 270 -65 64.0
FRM-202* III 10,000 270 -57 80.0
FRM-203 V 10,440 270 -70 140.1
FRM-204* IV 10,293 270 -64 76.0
FRM-205* South 8,800 270 -76 90.0
FRM-209 IV 10,264 270 -70 61.0
FRM-210 IV 10,092 270 -81 172.9
FRM-211* III 9,880 272 -47 106.0
FRM-212* IV 10,080 270 -57 85.0
F-93 III 9,727 270 -90 50.9

Notes: All drill holes are diamond drill core through the gold mineralized zone with exception of holes marked with * which are reverse circulation drill holes. Northings are in local grid coordinates, which are rotated 20 degrees west from true north. All drill hole azimuths are local grid azimuths, i.e. rotated 20 degrees west from true north. F-93 is a diamond-core drill hole completed by Vale and re-sampled by Carpathian.

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

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