Carpathian Gold Inc.
TSX : CPN

Carpathian Gold Inc.

January 09, 2008 08:00 ET

Presidents Update of Carpathians' 2007 Exploration Results and Corporate Activity

TORONTO, ONTARIO--(Marketwire - Jan. 9, 2008) - Carpathian Gold Inc. (TSX:CPN) is pleased to provide a summary of the results achieved from its exploration programs in Romania during 2007, as well as an update on recent Corporate activities.

EXPLORATION ACTIVITIES

Exploration activity was primarily focused on the twin porphyry system of Colnic (Au-Cu) and Rovina (Cu-Au) on its 100% owned Rovina Exploration License. Carpathians' drilling initiated in early 2006 discovered these Au-rich porphyry systems and work completed in 2007 has advanced these projects though the following milestones:

- First-pass NI 43-101 Resource Estimate completed based on 2006 drilling.

- Favorable results obtained from the first phase of metallurgical test work.

- 32,500 m of diamond drilling completed in 2007 has extended the mineralization and is expected to result in an upgrade of the 2006 resource categories.

- Results from generative exploration identified two additional porphyry targets with drilling confirming the presence of porphyry-style mineralization (Galaxy and Ciresata targets) and provided confirmation of the exploration porphyry-cluster concept.

- Based on the 2006 and 2007 drilling, which totaled 56,650 metres, preparation of a Resource Estimate update is currently underway.

Rovina Exploration License

This 100% owned, 94 square kilometre Rovina license is located within the Golden Quadrilateral of central Romania where historically over 55 million ounces of gold have been produced, and hosts both the Rovina and Colnic porphyries. Carpathian has been engaged in an active diamond drilling program on the Colnic and Rovina Au + Cu porphyry systems since their initial discovery in early 2006. The Colnic and Rovina porphyries occur approximately 2.5 km apart.

During 2007:

- AMEC Americas Ltd ("AMEC") was commissioned to complete an initial NI 43-101 resource estimate, with results announced on May 29, 2007. This Resource Estimate is based solely on the drilling results from each of the Colnic and Rovina porphyries completed during the 2006 drilling program (21,150 metres). The results were as follows.

-- Collectively, these two deposits comprise an:

--- indicated resource of 68.0 million tonnes grading 0.64 g/t Au and 0.12% Cu for 1.41 million ounces of gold and 175 million pounds of copper;

--- an inferred resource of 160.3 million tonnes grading 0.33 g/t Au and 0.24% Cu for 1.70 million ounces of gold and 849 million pounds of copper, and;

--- the above AMEC defined resources are constrained within conceptual open-pit shells utilizing various economic assumptions including a conservative gold price of 550 USD/oz and a copper price of 1.30 USD/lb.

-- Phase I metallurgical test work, completed by SGS-Lakefield, on each deposit, indicates the utilization of a standard cyanide-free, flotation process producing a saleable copper-gold concentrate for each deposit.

-- Both deposits were still open in all directions at the end of the 2006 drilling program.

- 86 core holes for approximately 32,500 metres were drilled on the Rovina License during the 2007 drilling program (includes generative exploration target drilling at the Galaxy and Ciresata porphyry targets), as follows:

-- On the Colnic porphyry, 39 core holes for 13,634 m, including 6 widely spaced scout holes (2,310 m) were completed.

-- This program in conjunction with the 2006 drilling results has defined Au-Cu mineralization over an area of 560 m in a northwest-southeast direction and 400 m in a northeast-southwest direction. (nominal drill grid at 60-80 m spacing with a nominal 30-50 m drill spacing in the higher grade zone in the valley).

-- Highlight drill intersections within the Colnic mineralized porphyry body from the 2007 drilling program include 235 m of 0.79 g/t Au and 0.12% Cu (1.02 g/t gold equivalent ("Au eq.") and (for Au eq and Cu eq, $450/oz Au & $1.25/lb Cu were used and metallurgical recoveries were not taken into account).

-- The Colnic deposit mineralization essentially starts from surface in the northwest part of the drilled porphyry-body along the higher-grade portion of the deposit contained within a valley. It starts at about 150 m below surface toward the southeast with mineralization drilled to depths of 400 m. The limits of the deposit appear to have now been defined from the 2007 drilling program.

-- On the Rovina porphyry, 34 core holes for 15,644 m were completed in 2007.

-- Drilling on the Rovina Porphyry has now defined Cu-Au mineralization in the order of 0.3 to 2.0 g/t Au & 0.2 to 0.47% Cu over a broad area measuring up to 700 m wide in a northeast-southwest direction and varying from 500 to 200 m in a northwest-southeast direction. Drilling in 2007 discovered the low-to-moderate grade Baroc Valley porphyry mineralization, which is an extension to the main Rovina Porphyry body along a northeast-southwest trend with Cu-Au mineralization now drill defined over 700 metres. Drill hole spacing ranges from a nominal 30 m apart in the higher-grade core of the Rovina Porphyry to 80 m apart in the Baroc Valley porphyry extension. Part of the mineralized porphyry body is exposed on surface with drilling indicating mineralization to +500 metre depths in the main Rovina porphyry body. Drill results also indicate that this mineralization is closed towards the south, but still remains open towards the north and northwest.

-- Highlight drill intersections within the Rovina mineralized porphyry body include: 526.5 m of 0.69 g/t Au and 0.28% Cu (1.22 g/t gold equivalent ("Au eq") or 0.64% copper equivalent ("Cu eq."); 544 m of 0.85 g/t Au and 0.27% Cu (1.36 Au eq. or 0.72% Cu eq.), and; 535 m of 0.46 g/t Au and 0.37% Cu (1.16 g/t Au eq. or 0.61% Cu eq.) (for Au eq and Cu eq, $450/oz Au & $1.25/lb Cu were used and metallurgical recoveries were not taken into account).

- All drill core was cut and sampled every metre. In addition, for assaying procedures, there were routine insertions of control samples for a comprehensive QA-QC program, producing over 34,000 assay results (see sample protocol below).

- Phase II metallurgical samples were collected throughout the mineralized zones in each deposit for further bench scale metallurgical test work to be completed in 2008.

- In 2007, Golder and Associates where commissioned along with an in-country Social and Environmental consulting group, for the establishment of EIA and SIA study guidelines as well as implementation of long-lead studies as typically required for permitting of similar projects.

- Continuation and further development of community and social responsibility programs were advanced during the course of the year.

- A Generative Exploration Program in the vicinity of the Rovina and Colnic porphyry systems was implemented to test for additional porphyries which may comprise a cluster porphyry occurrence common in many porphyry districts. A summary of this exploration work and subsequent drilling completed in 2007 is as follows:

-- 24 square km of ground magnetic survey in the northern part of the Rovina License including the Rovina and Colnic porphyry systems;

-- 21 line kilometres of Induced Polarization Surveys, and;

-- 145 line km of soil geochemistry surveys.

As a result of this generative exploration program, previously unknown porphyry was discovered, now called the Galaxy porphyry, that is located approximately 2.5 km west of the Rovina porphyry. During mid 2007, 2,671 metres (11 core holes) were completed on this porphyry to evaluate its average grade and size. Drill results returned low gold and copper contents, suggesting that this porphyry is likely non-economic.

This generative program also identified a porphyry system called the Ciresata Project, located approximately 4 km south of the Colnic porphyry. Geologic mapping has defined a porphyry alteration suite of propylitic, phyllic, and potassic alteration which is zoned towards a magnetite altered core that measures approximately 500 metres x 500 metres. This target lies within an interpreted 3 kilometre long, northeast-trending structural corridor. A completed ground magnetic geophysical survey covering 10 square km highlighted a positive magnetic anomaly coincident with the mapped magnetite alteration zone, surrounded by a magnetic low anomaly interpreted to be a magnetite-destructive alteration zone that measures 1.5 kilometres in diameter. Results from a soil geochemistry survey covering 4.1 square km defined a copper + gold anomaly coincident with, and extending beyond, the positive geophysical magnetic anomaly. Rock chip sampling of sparse outcrops in the area has yielded copper and gold values up to 0.29 g/t Au and 0.39% Cu. A 1,500 metre drill program commenced in late 2007 on this porphyry system. By the end of 2007, 2 holes for 550 metres had been completed. Assay results are pending for these core holes.

The exploration knowledge gained by Carpathian on the License has been utilized in developing target criteria for evaluating exploration potential in other parts of the 'Golden Quadrilateral'. Targeted reconnaissance mapping and sampling was carried out during 2007 in the vicinity of the Rovina License. Results from this program will be followed up in 2008.

Drill hole results have been reported from 68 holes from the 2007 program. Due to the major amount of drilling completed, there still remains a large backlog of assays pending (approximately 18 holes) that are expected to be available late January/early February, 2008. An update on drill results subsequent to the November 28th, 2007 press release will be provided at that time.

The go forward plan for 2008 is primarily focused on continuing further delineation and expansion drilling on the Rovina porphyry body along with drill testing newly identified porphyry targets and continuing generative exploration to identify other clusters of porphyry targets. Some additional drilling will also be completed on the Colnic porphyry body to completely define all of its boundaries and for geotechnical purposes. An updated and revised NI 43-101 resource is planned to commence shortly but that timing will be dependent upon receiving all of the 2007 drill hole results. Along with the continuation of the drilling program, a scoping/pre-feasibility study on the deposits will also be completed, targeted for the end of the year. Baseline environmental studies and social activity programs will also be maintained for incorporation into future documentation once a permitting application for the project is required.

Other Projects

On the 100% owned Oravita License, located in southwestern Romania, 6 reverse circulation holes and 3 core holes for 756 metres were completed in the northern portion of the license to evaluate a porphyry Cu-Mo prospect delineated in 2006. Highlight intersection includes 80 metres (from surface) of 0.18% cu and 0.015% Mo.

At the 100% owned Fuzerradvany Concession in northeast Hungary, a total of 6 diamond drill holes were completed for approximately 803 metres. This drill program was designed to test the interpreted centre of a large epithermal hot-springs style alteration system, which covers an area of 2 km2 hosted in a sequence of lacustrine sediments and tuffs. Altered tuffs within this sequence host high-quality illite deposits that had been exploited through underground mining until they were recently closed. Underground mapping and sampling has demonstrated the presence of gold-bearing chalcedonic-quartz veinlets cutting the illite alteration zones. Soil geochemistry anomalies highlight northwest striking structures with anomalous Au-As-Sb up to 1.5 kilometres in length. The present drilling program is testing the interpreted centre of the alteration system with all drill holes intersecting shallow-level epithermal mineralization features including hydrothermal breccias, cross-cutting quartz veinlets, and disseminated fine-grained sulphides in intensely silicified tuffs. Assay results from this drill program are pending.

CORPORATE ACTIVITIES

During late 2007, Carpathian shares experienced dramatic share price fluctuations as a result of a combination of factors outside of its control. Firstly, the worldwide commercial paper crisis that adversely affected both markets generally and a substantial number of public companies and; secondly, the negative outlook of mining and exploration in Romania based on circumstances relating to another Canadian listed exploration company in the country. Carpathian did not and does not have any of its funds invested in any form of asset-backed commercial paper. At the end of 2007, Carpathian had approximately Canadian $16 million in cash and no debt. Carpathian has also not encountered, to date, any negative situations or encumbrances in its exploration activities in Romania. Carpathian expects that the current negative perceptions for mining in Romania should be dispelled during 2008. In the meantime, Carpathian plans to continue its exploration activity in Romania, but will prudently monitor the situation and adjust its commitments there accordingly.

On December 7, 2007, Carpathian announced that it had entered into a letter of intent to acquire a 100% interest in the Riacho Dos Machados gold project in Brazil. This 22,000 hectare land package hosts a known historical, high-grade gold resource of 560,000 ounces of gold with historical open pit gold production of surface oxide gold mineralization, which was originally discovered and developed by Companhia Vale do Rio Doce ("CVRD"), and produced approximately 180,000 ounces of gold between 1989 and 1997. This proposed acquisition is subject to shareholder approval and regulatory approval. In management's opinion, this proposed acquisition represents an excellent opportunity for Carpathian as it is a permitted brownfield operation with existing infrastructure that could accelerate the goal of becoming a near term gold producer to as early as late 2009, without the burden of a large capital expenditure requirement that is often typical with other development assets. Management also believes that the upside potential of this land package is excellent and that the potential resource is substantially larger than the historically indicated resource. This acquisition is accretive to existing shareholders and enhances and builds onto Carpathian's portfolio by adding a second large exploration/development platform which complements the existing exploration and long-lead time development projects in Romania. Further detailed information on the project will be contained in the Information Circular which is expected to be mailed to shareholders sometime in mid February. Further details on the proposed acquisition are provided in Carpathian's December 7, 2007 press release. Also a power point presentation on the project can be found on the Corporations website at www.carpathiangold.com.

Sample Protocol

All samples collected from any program in Romania and Hungary are prepared and analyzed at the independent Rom Analize SRL Laboratory in Gura Rosiei, Romania, owned and operated by ISO Certified ALS-Chemex Laboratory, using industry standard fire assay techniques for gold on 50-gram sample charges with AAS finish. Copper is analyzed using the industry-standard method of aqua-regia digest on a 0.40-gram sub sample with an AAS finish. Coarse blanks, pulp blanks, pulp duplicates, core twins and known gold and copper standards are inserted on a routine basis. They consist of 15 per cent of submitted samples. For the current drill program a minimum of 3% of sample pulps are analyzed at the ISO Certified OMAC Laboratory in Ireland, for check assays. The drill assays reported in this press release are from split HQ and NQ size diamond core with the remaining half retained for reference. All holes are sampled on a one-metre interval from top to the end of the hole.

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. is a mineral exploration company focused on gold exploration primarily on its properties 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 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
    (416) 368-7744 (CAN)
    (416) 260-2243 (CAN) (FAX)
    or
    Carpathian Gold Inc.
    Mike O'Brien
    Manager Investor Relations
    (416) 368-7744 (CAN)
    (416) 260-2243 (CAN) (FAX)
    Email: info@carpathiangold.com
    Website: www.carpathiangold.com
    or
    Eric Leboeuf
    Investor Relations, Montreal
    (514) 341-0408 or 1-866-460-0408
    (514) 341-1527 (FAX)
    Email: ericleboeuf@paradox-pr.ca