Carpathian Gold Inc.
TSX : CPN

Carpathian Gold Inc.

January 25, 2011 07:00 ET

Carpathian Announces Mill & Crusher Acquisition, for the RDM Gold Project, Brazil

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2011) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") is pleased to announce that it has agreed to acquire a ball mill and crushers (the "Plant") for its Riacho dos Machados gold project in Minas Gerais, Brazil (the "Project"). Total cost of the equipment and technical information is US $9.0 million and will be paid out of the Corporation's treasury. The Plant is new and is presently in original manufacturers' shipping containers having originally been commissioned by another mining company for a project that was not developed. Closing of the acquisition is expected to take place on or about January 31st 2011.

This acquisition secures a key component for the development of the RDM Gold Project and will not only provide a savings to the overall capital expenditures of the Project, but more importantly will save a substantial amount of lead-time compared to the purchasing of a similar Plant, which would normally require up to 16 months of delivery time. In addition, the purchase achieves an important step towards the Corporation's objective of seeing the Project in production in 2012.

The crushing and grinding plant has a capacity of up to 9,000 tonnes per day. The acquisition includes two HP500 cone crushers, a 9300kW grinding mill, motors, ancillary equipment, spare parts, and detailed technical information and engineered drawings. Although the current Project studies call for a 7,000 tonne per day facility, the Plant's additional capacity will facilitate increased processing rates of potential ore expansion from future underground operations, open pit extensions and for the discovery of any new satellite deposits.

About Carpathian

The Corporation is an exploration and development company whose immediate business interest is to develop gold production in the near term at its 100% owned Riacho dos Machados Gold Project in Brazil. Currently, the Feasibility Study for the RDM Gold Project is being completed.

As the RDM Gold Project is being developed to the production phase, the Corporation will advance its exploration and development plans for its 100% owned Rovina Valley Au-Cu Project located in Romania. When the Rovina Project is brought into production, this will elevate the Corporation's gold output resulting in it becoming a substantial mid-tier gold producer.

On a company wide basis, the Corporation currently hosts NI 43-101 resources of 3.88 million ounces of gold in the measured plus indicated categories and 4.58 million ounces of gold in the inferred category plus 759.1 million pounds of copper in the measured plus indicated category and 663.1 million pounds of copper in the inferred category.

The Riacho dos Machados Gold Project, for which a Feasibility Study is being completed, is targeted to produce in the order of 100,000 ounces of gold per annum, with the initiation of construction during the first half of 2011 and anticipated production startup in late 2012.

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)
    or
    Carpathian Gold Inc.
    Mike O'Brien
    Manager Investor Relations
    +1 (416) 368-7744
    +1 (416) 260-2243 (FAX)
    info@carpathiangold.com
    www.carpathiangold.com
    or
    Paradox Investor Relations
    Montreal
    +1 (514) 341-0408 or 1-866-460-0408
    +1 (514) 341-1527 (FAX)
    info@paradox-pr.ca
    or
    Seton Services, UK
    Toni Vallen
    +44 207 224 8468
    toni@setonservices.co.uk